Plastic pollution remains one of the most pressing environmental challenges of our time — but advanced recycling offers a potentially transformative solution. As of 2025, this set of technologies is at a critical juncture, with growing investment, innovation, and scrutiny.
What is advanced recycling?
Advanced recycling, also known as chemical recycling, refers to a suite of technologies that break down plastic waste into its molecular or chemical building blocks. Unlike mechanical recycling, which reprocesses plastics through washing, drying, grinding, and melting, advanced recycling allows for the conversion of mixed or contaminated plastics into high-purity outputs — monomers, fuels, or feedstocks — usable in the production of new plastics or other materials.
These technologies aim to address limitations of conventional recycling methods, especially for hard-to-recycle plastics such as multilayer films or contaminated packaging.
Types of advanced recycling
The main categories of advanced recycling include:
- Pyrolysis – Heating plastics without oxygen to produce oil or gas for fuels and petrochemical feedstocks.
- Gasification – Transforming plastic waste into syngas, which can be used to synthesize chemicals or generate energy.
- Depolymerization – Breaking down plastics like polyethylene terephthalate (PET) into monomers for remanufacturing.
- Solvent-based purification – Dissolving plastics to remove contaminants and reuse the base polymer.
The state of advanced recycling in 2025
As detailed in Lux Research’s recent state of advanced plastic recycling industry blog, 2025 marks a pivotal year. While momentum is strong — with new commercial plants, regulatory clarity, and sustained investment — economic viability remains uneven.
In 2025:
- Most advanced recycling projects are still in pilot or early commercialization stages.
- Only a fraction operate profitably without subsidies or favorable policy mechanisms.
- Adoption is strongest in regions like the EU and U.S., but localized feedstock quality and infrastructure constraints remain major hurdles.
Global players like Eastman, ExxonMobil, and Brightmark have made significant strides, but scalability, feedstock consistency, and product acceptance still challenge long-term sustainability.
Concerns around advanced recycling
Despite its potential, advanced recycling faces criticism:
- Environmental risk – Some processes release toxins or generate significant emissions. The Natural Resources Defense Council and Greenpeace caution against calling it “recycling” at all.
- Lack of transparency – Inconsistent reporting, energy use, and lifecycle data create uncertainty.
- Greenwashing potential – Mislabeling incineration or fuel conversion as circular economy practices undermines consumer and regulatory trust.
Industry voices and value chain dynamics
Understanding the full picture requires examining supply chain tensions — from waste collectors to polymer manufacturers. Lux Research captures this in interviews highlighting stakeholder insights, such as:
1. Inadequate infrastructure
Current waste management systems are ill-equipped to handle hard-to-recycle plastics, such as nonbottle PET. These materials often require specialized processing, which is not integrated into municipal waste systems. Additionally, the low market value of recycled products diminishes incentives for collection and processing.
2. New roles in the value chain
To address these challenges, stakeholders are adopting nontraditional roles and forming collaborative partnerships. Companies across the plastics value chain (chemicals, packaging, and consumer goods) are integrating recycling operations into their portfolios.
3. Integration challenges
Advanced recycling aims to replace virgin feedstocks, but it faces challenges like feedstock variability and purification needs. Technology developers and supply chain partners often lack clear alignment on goals and collaboration approaches.
Advanced recycling will play a role in shaping the future of plastic — but its success depends on honest assessments, clear policies, and continued innovation. For a more detailed look at the current state of advanced recycling, check out our e-book, Advanced Recycling in 2025.