Base resins continue to dominate:
Plastic resins are the core of the industry chain. The global market size will reach US$775.6 billion in 2024 and is expected to exceed US$1.28 trillion in 2034, with a compound annual growth rate of 5.1%. Its cost-effectiveness and processing flexibility are irreplaceable in packaging, automotive parts and other fields7.
Polypropylene granules are the largest sub-category, with a market size of US$166.24 billion in 2024 and US$231.5 billion in 2032 (CAGR 4.22%). The demand for lightweight automobiles has driven it to become the largest application area, accounting for more than 40% of global consumption109.
Engineering plastics are growing rapidly:
High-performance PPS resins have increased their penetration in new energy vehicle battery components and aerospace components due to their heat resistance and stability. The market size will reach US$2.3 billion in 2030 (CAGR 6.3%)9.
PUR granules (polyurethane) benefit from the demand for building energy-saving renovation and electric vehicle sound insulation. The valuation is US$634.7 million in 2024 and is expected to increase to US$928.5 million in 20321.
Regional pattern reconstruction:
The Asia-Pacific region contributes 35% of the global recycled plastic pellet production capacity and leads the growth rate (CAGR 8%)39. China’s polystyrene recycling rate is only 16%, far lower than Europe’s 7%, and there is huge room for technological upgrading8.
Technological innovation: a technological breakthrough in the circular economy
Breakthrough in the recycling of polluted plastics:
Sulzer launched EcoStyrene™ chemical recycling technology, which can process PS waste containing flame retardants and food residues, increase the recycling rate by more than 300%, and produce food-grade recycled particles to fill the gap in the industry.
Policies reshape the industry: Compliance costs and green opportunities coexist
The EU microplastics ban takes effect:
From October 17, 2025, all products containing intentionally added microplastics must update the SDS safety data sheet and label, and mark the environmental protection disposal guidelines. Food additives and in vitro diagnostic equipment will be implemented in stages4.
Global regulatory convergence:
The US Microbead Freedom Act prohibits the addition of microplastics to cleaning products
Japan amends the Marine Pollution Prevention Act to require mandatory labeling of plastic ingredients
China promotes microplastic risk assessment to pave the way for legislation4.
Upgrading of industrial standards:
The EU sets a goal of 55% plastic packaging recycling rate by 2030, promoting the proportion of recycled particles in the automotive and packaging fields to increase by 53.
Sustainable transformation: from waste to resources
The industrialization of recycled particles is accelerating:
The global recycled plastic particle market has an annual compound growth rate of more than 7%. Companies such as Polyclean Technologies have increased the purity of HDPE particles to 99.5% through post-consumer recycling (PCR) technology to meet the packaging requirements of electronic components3.
Commercialization of biodegradable materials:
PLA coated paper cups, lunch boxes and other products have reduced costs by 20% due to technical optimization by Hengxin Life and other companies, and Amazon platform orders have increased by 45% year-on-year6.
Chemical recycling closed-loop molding:
Sulzer has joined forces with waste management companies to build a PS recycling alliance to convert landfill waste plastics into high-value resins, increasing profits by $150 per ton8.
Challenges and future: cost and technology game
Raw material fluctuation pressure:
Petrochemical-based pellets are affected by crude oil price fluctuations. In 2024, the cost of isocyanate will rise by 12%, and the gross profit of extrusion enterprises will be 110%.
Recycling technology bottleneck:
The efficiency of mixed plastic sorting is less than 60%, which restricts the consistency of recycled pellets5.
Key trends in the next ten years:
Mechanical recycling + chemical recycling are parallel, and the penetration rate of AI sorting technology will reach 80%
The capacity expansion of bio-based PP pellets is expected to increase to 18%810 in 2030.
The plastic pellet industry is undergoing a paradigm revolution from linear consumption to circular regeneration. With the implementation of new EU regulations, the commercialization of chemical recycling technology, and the green upgrade of the Asia-Pacific manufacturing cluster, sustainable plastic pellets will become a new growth pole for cross-border e-commerce。