by The U.S. plastic-to-fuel market utilizes plastic waste to produce renewable fuels through various processes of thermal cracking and catalytic cracking. The primary products generated include pyrolysis oil, synthetic gas, and renewable diesel. The process helps address the issues of plastic pollution and sustainable fuel production. Advancements in plastic-to-fuel technologies allow efficient conversion of mixed plastic waste streams into valuable fuel products.
The global U.S. plastic-to-fuel Market is estimated to be valued at US$ 128.21 Bn in 2023 and is expected to exhibit a CAGR of 9.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing demand for eco-friendly fuels: The plastic-to-fuel process is considered environment friendly as it addresses both plastic waste management and production of renewable fuels from non-recyclable plastic waste. It avoids plastic from ending up in landfills or oceans. Strong government policies and regulations supporting waste-to-energy technologies are further expected to drive the plastic-to-fuel market growth over the forecast period.
Flourishing plastic waste recycling industry: Flourishing plastic waste recycling industry has opened opportunities for plastic-to-fuel technology adoption. Large amounts of unrecycled plastic waste provide a steady feedstock supply for plastic-to-fuel processes. Ongoing research and development activities are focused on developing innovative plastic-to-fuel systems capable of processing mixed composite plastic waste without any separation requirements. This eases plastic waste handling and improves the viability of plastic-to-fuel solutions.
Segment Analysis
The U.S. plastic-to-fuel market is dominated by the polyethylene terephthalate (PET) sub-segment. PET represented more than 30% of the market share in 2023 due to its wide use in packaging like bottles, containers, and multilayer packaging products. PET is majorly used in food and beverage packaging applications in the US which drives its high volume collection and conversion into synthetic fuels and waxes.
PEST Analysis
Political: The US government has implemented stringent regulations around the recycling and proper disposal of plastics to reduce environmental pollution. Various incentives are also provided to companies engaged in converting plastic waste into valuable fuels and chemicals.
Economic: High disposal cost of plastic waste and volatility in crude oil prices provide opportunities to plastic-to-fuel technology. The process helps generate additional income from waste and acts as a hedge against fluctuation in fossil fuel costs.
Social: Growing awareness about environmental protection and sustainable waste management practices are encouraging the adoption of plastic-to-fuel technology. Individuals and organizations are willing to participate in waste collection drives to support such environment-friendly initiatives.
Technological: Advancements in thermal and catalytic conversion techniques have enhanced the efficiency and yield of the plastic-to-fuel process. Continuous process innovation is further optimizing the technology to extract higher value from plastic waste.
Key Takeaways
The Global U.S. Plastic-to-Fuel Market Size is expected to witness high growth.
Regional Analysis: The Western region dominates the U.S. plastic-to-fuel market due to stringent regulations around waste management and recycling. States like California have implemented producer responsibility mandates to boost plastic waste collection and recycling.
Key players operating in the U.S. plastic-to-fuel market are Eli Lilly & Company, Boehringer Ingelheim GmbH, Vistin Pharma AS, Janssen Pharmaceutica NV, Sanofi, Astellas Pharma Inc., AstraZeneca plc., Merck & Co., Inc., Novartis AG., Novo Nordisk A/S, Teva Pharmaceuticals Pvt Ltd., and Sun Pharmaceutical Industries Ltd. These players are focusing on developing innovative thermal and catalytic technologies to process mixed plastic waste streams with higher efficiency. Partnerships with waste collectors and industrial users of fuels are also helping expand their feedstock access and customer base.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
