Recycled Plastic Packaging Market

Recycled Plastic Packaging Market Outlook from 2024 to 2034

The global recycled plastic packaging market size is estimated to stand at USD 28.9 billion in 2024. The market valuation is projected to surpass USD 61.2 billion by 2034, registering a promising CAGR of 7.8%.

Key Highlights

• Consumers are increasingly concerned about the environmental impact of plastic waste, driving recycled plastic packaging demand.
• Businesses are joining the global campaign to minimize plastic pollution by using recycled plastic packaging in their sustainability programs.
• Innovations in recycling technologies are improving the quality and availability of recycled plastics, boosting their acceptance in the packaging industry.
• By 2034, there is likely to be a twofold surge in the sales of recycled plastic packaging from consumers. This is driven by retailers aiming for sustainability and rising regulatory standards.
• An encouraging upsurge is anticipated in developing countries like China and India as they welcome recycled plastic packaging and set the stage for substantial expansion.

Attributes	Details
Recycled Plastic Packaging Market Size (2024)	USD 28.9 billion
Recycled Plastic Packaging Market Forecasted Size (2034)	USD 61.2 billion
Projected Value CAGR (2024 to 2034)	7.8%

Key Factors Influencing the Recycled Plastic Packaging Market Growth: A Comprehensive Analysis of the Top 3 Dynamics

The Rise of Recycled Plastic Consumption in Today's Market: Companies, recognizing environmental concerns, increasingly opt for recycled materials. Contrary to a common belief, sustainable packaging is not always pricier for retailers compared to less eco-friendly options. Also, consumers are crucial since they choose environmentally friendly products. As demand and sustainability converge, a more conscientious and environmentally conscious market is created. This is a sign of positive developments. Meeting sustainability commitments is likely to lead to a surge in demand for recycled plastic packaging by 2034.

Innovative Brands Lead the Way with Recycled Content in Packaging Solutions: Brand owners are actively launching new packaging formats and creating innovative solutions to increase product recyclability and the amount of recycled content. This is driven by their commitment to sustainable packaging, addressing consumer concerns, and adapting to the growing regulatory pressure. These innovative companies understand the importance of minimizing their ecological footprint and have adopted eco-friendly practices. For instance, Unilever's Love Beauty & Planet demonstrates a commitment to environmental stewardship by crafting the packaging for its hair and body care products entirely from 100% recycled plastic.

Governments are Crafting Regulations for Packaging to Redefine a Sustainable Future: Governments are making rules for recycled plastic packaging. They want to make sure it helps the environment. The goal is to reuse materials, stop waste, and encourage responsible production. For instance, in April 2022, plastic packaging taxation (PPT) was implemented with the aim of encouraging businesses to utilize recycled plastic in their plastic packaging. Businesses that import or manufacture 10 tons or more of plastic packaging into the United Kingdom during a rolling 12-month period are required to file paperwork with HMRC in order to pay PPT.

Historical Recycled Plastic Packaging Market Statistic Analysis alongside Future Projections

From 2019 to 2023, the recycled plastic packaging industry showed modest growth, boasting a 4.0% CAGR. During this period, the market witnessed a substantial increase in size, climbing from USD 23.1 billion in 2019 to reach USD 27.1 billion in 2023. All through these years, there has been a notable shift in consumer perceptions about sustainable packaging.

Recycled plastic packaging received a lot of attention from retailers, fast-moving consumer goods (FMCG) corporations, and regulatory agencies were taking significant action in this field. FMCG businesses and retailers have taken significant steps in response to public concerns over the waste of single-use packaging. With a growing recyclability ratio, companies are adapting their production processes to meet this eco-conscious demand. This led to substantial actions, fostering a notable trajectory in the growth of post-consumer recycled plastic packaging market.

Historical CAGR (2019 to 2023)	4.0%
Forecasted CAGR (2024 to 2034)	7.8%

Looking at the table above, it is clear that the projected CAGR for the recycled plastic packaging market is higher than its historical CAGR. This suggests positive growth trends. Recycled plastic packaging is becoming a versatile and eco-friendly choice across various industries. This global trends in recycled plastic packaging is expected to continue in the upcoming years. Its sustainable touch can be found in sectors ranging from food and beverage to personal care and beyond.

Companies in the consumer goods, retail, and electronics industries are also embracing recycled plastic packaging to reduce environmental impact. As a result, there is a notable increase in per capita packaging consumption, highlighting the positive shift toward environmentally friendly choices across various markets.

Industry	Future Prospects
Food and Beverage	Governments are promoting the use of recycled plastic packaging across the food and beverage industry. For example, In India, the Food Safety and Standards Authority of India (FSSAI) recently circulated a directive concerning the implementation of the Draft FSS (Packaging) Amendment Regulations, 2022, which allow the implement of recycled plastic for food packaging.
Personal Care and Cosmetics	Several businesses have already adopted recycled plastic packaging. L'Oréal, for instance, employs post-consumer recycled plastics in its environmentally friendly cosmetic packaging. Furthermore, recyclable materials make up 80% of the plastic packaging used by Kiehl. As recycling processes become more efficient, the industry is likely to witness a further surge in recycled plastic packaging demand.
Retail and Consumer Goods	The future outlook in this industry suggests a shift toward a circular economy where the life cycle of plastic is extended through recycling. Companies with a strong commitment to creating a sustainable future include The Coca-Cola Company. It currently uses only recycled plastic for its 500 ml bottles, saving 29,000 tons of virgin plastic annually.
Electronics	The industry is increasingly recognizing the importance of sustainability, prompting a shift toward eco-friendly practices. The top smartphone manufacturer in the world, Samsung Electronics, has made the decision to stop utilizing plastic in packaging by 2025 and to employ recycled plastic components in all of its new flagship Galaxy devices.
Logistics and eCommerce	In the ever-evolving landscape of the eCommerce and logistics industry, the utilization of recycled content in packaging industry is gaining momentum. In addition to offering a line of clothes made of recycled materials, Patagonia distributes its goods in bags created from recycled plastic. Flipkart, a company owned by Walmart, likewise wants its supply chain to contain only recycled plastic.

Recycled Plastic Packaging Market Trends and Opportunities

Attributes	Details
Trends	Technological developments have enhanced recycling procedures, increasing their efficiency and cost-effectiveness. Recycled plastic packaging helps create a more resource-efficient and sustainable supply chain by adhering to the principles of the circular economy.
Opportunities	With a growing production capacity for recycled materials, the industry is poised to meet the rising package demand while making significant strides toward a more eco-friendly future. Collaboration between packaging manufacturers, retailers, and recycling facilities creates opportunities for integrated and efficient recycling systems.

Recycled Plastic Packaging Market Analysis by Region

North America stands out as a dominant force in the recycled plastic packaging industry, with a substantial increase in demand for sustainable packaging solutions. Meanwhile, Asia Pacific is experiencing rapid growth, fueled by its growing commitment to environmentally friendly practices. These dynamics underscore a global shift toward ecological packaging solutions, with North America leading the way and the Asia Pacific emerging as a key player in this sprouting landscape.

Eco-friendly Wave Sweeps North America's Packaging Industry with Recycled Plastic Surge

North America's packaging sector has experienced significant transformation in recent years, driven by advancements in digital printing, sustainability, and eCommerce expansion. This has led to a rise in the demand for packaging made of recycled plastic. Since recycled plastics have a lower carbon footprint during production than virgin plastics, end-use industries are turning their attention to using recycled plastics for packaging.

Countries	Forecasted CAGR (2024 to 2034)
United States	5.3%
Canada	6.5%

The United States’ market is driven by ever-sophisticated and better processing methods of eco-friendly plastic packaging. Government agencies and other organizations work with the leading players in the recyclable packaging materials industry to promote their packaging.

Several businesses and brand houses have made promises to include 25% of post-consumer recycled plastic in their packaging by 2025 in response to growing investor and consumer scrutiny of the environmental effects of plastic packaging. For instance, Hamilton Perkins Collection took a sustainable leap by crafting Earth Bags exclusively from 100% recycled plastic bottles.

Canada is expected to expand at a faster rate since numerous sectors are implementing innovative packaging processes. The surge in exports of packaged foods is driving a growing demand for recycled plastic packaging. Canada exports processed food products to a staggering 190 countries, with a substantial portion reaching key markets such as the United States, China, Japan, Mexico, Russia, and South Korea. In October 2023, Coca-Cola declared that by early 2024, all 500 ml sparkling beverage bottles in Canada are going to be constructed entirely of recycled plastic.

Europe's Commitment to Sustainability Boosts Recycled Plastic Packaging Demand

In terms of sustainability, Europe is renowned for its rigorous regulations. Europe's expanding demand for packaged food and non-food products is driving growth in the retail sector. It generates an exclusive demand for environmentally friendly packaging options, which is anticipated to greatly boost the recycled plastic packaging market growth.

Countries	Forecasted CAGR (2024 to 2034)
United Kingdom	6.3%
Germany	5.0%

The government of the United Kingdom has put laws into place to support recycling, cut down on single-use plastics, and increase the amount of recycled plastic that is used in packaging. As a result of these more stringent regulations, many firms are working toward incorporating eco-friendly plastic packaging.

These factors are likely to propel the expansion of the recycled plastic packaging market in the United Kingdom. Magnum wants 100% of their tubs to be composed of recycled plastic by 2025. In 2021, Magnum produced over 30 million tubs using 750MT of recycled plastic.

Consumers are becoming more health conscious, which is driving up demand for healthier food and beverages. This is one of the main factors propelling the Germany recycled plastic packaging market growth. Gutfried, BASF, SABIC, and SÜDPACK united to develop an eco-friendly recycled plastic packaging solution for sausages in Germany.

Packaging design for recycling and recyclability, as well as the use of recyclable and renewable materials, are imposed by German package law. Germany is going to enforce the 'Mehrwegpflicht,' or the requirement to provide reusable packaging, as of January 2023.

Asia Pacific Ramps up Infrastructure, Boosting Availability of Recycled Plastic Materials

With a sizable middle class and rising population, Asia Pacific is becoming a hotspot for the recycled plastic packaging market, especially in the food and beverage industry, where there is a growing need for packaged goods. Growing consumption has made sustainable packaging solutions a top priority for local and global businesses in order to comply with regulations and address environmental issues.

Countries	Forecasted CAGR (2024 to 2034)
China	8.7%
India	9.1%

China is making significant investments in cutting-edge recycling technology, such as the recycling of biodegradable plastic and industrial composting. High-quality recyclable packaging materials are now more readily available as a result of their concentration on improving waste management and recycling infrastructure.

Recycled plastic packaging is becoming increasingly popular in China, a country with enormous development potential due to a move toward eco-friendly alternatives. Mengniu, a well-known dairy company in China, is the first company in the country's food business to employ recycled plastic shrink film for its dairy products' secondary packaging.

The growing food and beverage industry in India, together with the personal care and cosmetics sectors, is driving the recycled plastic packaging market expansion. In July 2023, Himalaya Herbals, a much-loved Indian brand known for its diverse range of personal care and wellness products, took significant strides toward environmental responsibility.

It has embraced sustainability by minimizing plastic packaging and instead opting for eco-friendly alternatives such as recyclable bottles and tubes crafted from post-consumer recycled plastic. The market in India has also benefited from the tremendous expansion of eCommerce sector.

Recycled Plastic Packaging Market Analysis by Segment

As far as the material is concerned, the polyethylene terephthalate (PET) segment is likely to dominate the industry in 2024, accounting for a 43.7% market share. Similarly, the food segment is expected to take the lead when considering end use, commanding an 18.90% recycled plastic packaging market share in 2024.

Segment	Market Share in 2024
Polyethylene Terephthalate (PET) Material	43.7%
Food End Use	31.8%

PET is Redefining Packaging with Strength, Recyclability, and Cost Efficiency

PET, or polyethylene terephthalate, is a common polymer used in packaging. The widespread usage of PET in beverage and food packaging is the main reason behind its dominance in the market. PET is a material that has several benefits, including a high strength-to-weight ratio, shatterproof nature, and non-reactivity when exposed to food or beverage. When items are transported in PET packaging, lightweightness also results in cost savings.

PET is more appealing since it can be recycled, which is compatible with the increasing emphasis on environmental conscience. The material's supremacy in the market is primarily due to its simplicity of processing, which offers solutions at a reasonable price without sacrificing quality. PET continues to set the standard for recycled plastic packaging in response to the growing sales of recycled plastic envelope.

Food Industry Pioneers Embrace Recycled Plastic Packaging for a Green Future

The burgeoning food and beverage sector offers a substantial prospect for the recycled plastic packaging market. Companies are actively looking for sustainable packaging solutions worldwide to meet customer expectations and environmental aims as the world's food consumption rises. With its eco-friendly reputation and less carbon impact, recycled plastic packaging is well-positioned to satisfy this demand.

Several food businesses are switching to recycled plastic materials to show their dedication to sustainability and lessen their reliance on virgin plastics. One of the top food and beverage businesses in the world uses rPET (recycled plastic PET) food packaging, which is made in South America by New World Recycling. The company uses a method that complies with food contact regulations to recycle plastics for use in food packaging. About 300 million PET bottles are recycled in a closed-loop process and repurposed into useful containers as a consequence of their food packaging recycling program.

Start-ups Strategically Seize Opportunities in the Recycled Plastic Packaging Market

In a bid to dominate the market, start-ups leverage innovation by developing eco-friendly alternatives. They focus on cost-effective solutions, ensuring competitive pricing while maintaining high-quality standards. EcoPackables, a forward-thinking start-up rooted in the United States, is on a mission to craft sustainable packaging solutions from repurposed materials.

The company employs compostable and customizable raw materials, including polymers, recycled plastic, and recycled paper. Its product line encompasses compostable shipping labels made from post-consumer recycled white paper with a non-toxic adhesive. This showcases the commitment to environmentally friendly solutions.

Competitive Landscape

Recycled plastic packaging market players deploy multiple strategies to hone down on their specialty. Certain emphasize state-of-the-art technical advancements that improve their longevity and performance. A strong eco-friendly brand image is established by those who value sustainable sourcing. A handful of them prioritize cost leadership by optimizing production procedures to provide competitive prices. Some companies' strong supply chains are a result of their strategic partnership with suppliers and relationships with important recycling industry players.

Recent Developments

• In February 2023, Mobil™, a pioneer in the field of innovative lubrication technology, introduced 50% Post-consumer Recycled plastic pails as part of an effort to promote environmentally friendly packaging. Incentives such as the PCR pails encourage the use of recycled plastic, which lowers plastic waste in the packaging industry and promotes sustainable development.
• In July 2023, Berry Global, an Indiana-based firm, developed a line of reusable bottles for The Bio-D Co., a Hull, United Kingdom cleaning company that prioritizes ethics and the environment. These bottles are manufactured completely of recycled plastic (PCR). The bottles are going to come in three different capacities: 25 ounces, 33 ounces, and 1.3 gallons.
• In September 2023, the top-selling Organic Potting Mix Company in North America, Back to the Roots, announced a groundbreaking initiative for the upcoming 2024 gardening season. The company’s packaging is going to convert to 100% post-consumer-recycled (PCR) certified circular plastic bags, an unprecedented move for the soil segment.

Key Industry Players in the Recycled Plastic Packaging Market

• Amcor Plc.
• Berry Global Inc.
• Sonoco Products Company
• Sealed Air Corporation
• Indorama Ventures Public Co., Ltd
• Gerresheimer AG
• ALPLA Werke Alwin Lehner GmbH & Co KG
• Plastipak Holdings, Inc.
• UFlex Limited
• Placon Corp.
• Retal Industries LTD.
• Genpak, LLC
• Alpha Packaging
• Phoenix Technologies
• CKF, Inc.
• Pactiv Corporation
• Anchor Packaging Inc.
• Faerch A/S

Key Segments in the Recycled Plastic Packaging Market Report

By Product Type:

• Caps & Closures
• Bags & Sacks
• Bottles & Vials
• Canisters & Jerry Cans
• Films & Laminates
• Trays
• Clamshells
• Blister Packs
• Pouches & Sachets
• Cups & Lids
• Jars
• Tubs
• Tapes & Labels

By Material Type:

• Polyethylene
• Polyvinyl Chloride
• Polystyrene
• Polypropylene
• Polyethylene Terephthalate
• Others (Polycarbonate, PVDC, etc.)

By End Use:

• Food
• Beverages
• Pharmaceuticals
• Cosmetics and Personal Care
• Homecare and Toiletries
• Electronics
• Other Industrial

By Manufacturing:

• In-house Manufacturing
• Contract Manufacturing

By Region:

• North America
• Latin America
• East Asia
• South Asia & Pacific
• Western Europe
• Eastern Europe
• Central Asia
• Russia & Belarus
• Balkan Countries
• Baltic Countries
• Middle East and Africa (MEA)

Frequently Asked Questions

How Big is the Recycled Plastic Packaging Industry?

The recycled plastic packaging market is set to be valued at USD 28.9 billion in 2024.

What is the Future Forecast of the Recycled Plastic Packaging Market?

The global recycled plastic packaging market size is projected to surpass USD 61.2 billion by 2034.

What is the Projected CAGR for the Recycled Plastic Packaging Market?

The CAGR of the recycled plastic packaging industry is estimated to be around 7.8% through 2034.

Who is the Market Leader in Recycled Plastic Packaging?

Amcor Plc. and Berry Global Inc. are recycled plastic packaging market leaders.

Which Countries Drive the Demand for Recycled Plastic Packaging?

The United States, Germany, and India are key consumers of recycled plastic packaging.