Europe's chemical recycling industry could reach cost parity with virgin plastics production by 2040.

From Yahoo Finance: 2025-05-28 06:45:00

A Bain & Company report predicts Europe’s chemical recycling industry could achieve cost parity with virgin plastics production in 2-3 decades. The sector currently has a valuation of over €400bn in capital expenditures, but faces high recycling costs. Policy interventions and market penetration strategies could boost industry growth to 15% market share by 2040.

To lead in chemical recycling, Bain & Company suggests plastics producers collaborate with value chain partners, engage with regulators, and experiment with new business models. The industry’s maturity, technological advancements, and operational experience are expected to drive cost efficiencies. Achieving cost equivalence would require global capital investments of at least €400bn.

Bain & Company’s global chemicals practice head, Mark Porter, highlights that chemical recycling could become competitive with virgin production once global volume reaches 650 million metric tons of polyolefins recycled. This analysis underscores the potential for industry players to reshape the plastics market through strategic partnerships and innovative business models.



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