Circular Economy Chemicals Market Report 2026

The circular economy chemicals market size has grown rapidly in recent years. It will grow from $103.12 billion in 2025 to $119.75 billion in 2026 at a compound annual growth rate (CAGR) of 16.1%. The growth in the historic period can be attributed to industrial waste generation, recycling technology development, environmental compliance requirements, rising raw material costs, adoption of resource efficiency practices.

The circular economy chemicals market size is expected to see rapid growth in the next few years. It will grow to $215.7 billion in 2030 at a compound annual growth rate (CAGR) of 15.8%. The growth in the forecast period can be attributed to circular economy regulations, corporate sustainability goals, growth in recycling infrastructure, innovation in chemical recovery technologies, demand for low carbon materials. Major trends in the forecast period include growing use of recycled chemical feedstocks, expansion of bio based chemical production, increasing adoption of closed loop manufacturing, rising demand for reusable industrial chemicals, focus on waste to chemical conversion.

The rising demand for sustainable products is expected to drive the growth of the circular economy chemicals market going forward. Sustainable products are goods created and used responsibly to minimize environmental impact and promote long-term resource efficiency. This demand is driven by growing environmental awareness, as consumers increasingly prefer products that reduce ecological impact and promote resource conservation. Circular economy chemicals support this demand by enabling the production of recyclable, reusable, and eco-friendly materials that minimize waste and environmental impact. For example, in July 2025, according to the Department for Environment, Food and Rural Affairs, a UK-based government organization, the recycling rate for household waste (including incinerator bottom ash metal) reached 44.6% in 2023, up from 44.1% in 2022. Thus, the rising demand for sustainable products is fueling the growth of the circular economy chemicals market.

Key companies in the circular economy chemicals market are focusing on integrating circular economy principles into their business models to enhance sustainability, secure raw material supplies, and meet evolving regulatory and consumer demands. Circular economy principles refer to concepts aimed at eliminating waste, keeping products and materials in use for as long as possible, and regenerating natural systems. For example, in November 2023, Evonik Industries AG, a Germany-based specialty chemicals company, launched a comprehensive circular economy program. This strategic initiative is structured around four key pillars: green products, circular products, new circular technologies, and circular infrastructure. The program includes ambitious targets, such as generating over €1 billion in additional sales from circular solutions by 2030 and using sustainable raw materials for half of its production in key growth areas such as healthcare and animal nutrition.

In July 2025, Veolia Environnement S.A., a France-based environmental management company, acquired Chameleon Industries Inc. for an undisclosed amount. Through this acquisition, Veolia aims to expand its circular economy capabilities in North America by recovering and repurposing semiconductor manufacturing byproducts, reducing waste, and providing sustainable chemical solutions for advanced industries. Chameleon Industries Inc. is a US-based specialty chemical manufacturing company focused on producing circular economy solutions.

Major companies operating in the circular economy chemicals market are TotalEnergies SE, BASF SE, Unilever PLC, Repsol SA, Veolia Environnement S.A., Dow Inc., LyondellBasell Industries N.V., Mitsubishi Chemical Corporation (MCC), Neste Oyj, INEOS Group Limited, Covestro AG, Indorama Ventures Public Company Limited, Braskem S.A., Eastman Chemical Company, Solvay S.A., Carbios S.A., GreenMantra Technologies, Plastic Energy Limited, Loop Industries Inc., Agilyx Corporation.

Europe was the largest region in the circular economy chemicals market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the circular economy chemicals market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the circular economy chemicals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The circular economy chemicals market consists of sales of bioplastics, recycled plastics, bio-based solvents, green surfactants, biodegradable polymers, recycled metals, sustainable packaging materials, and renewable fibers. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.