Recycled Paper Packaging Market Size, By Type, By Grade, By End Use Industry, Forecast 2025 - 2034

Recycled Paper Packaging Market Size

The global recycled paper packaging market currently accounts for USD 238.5 billion and is projected to grow at a CAGR of 5.1% from 2025 to 2034, driven by tightening environmental regulations, corporate sustainability commitments, and cost efficiencies in recycling technologies.
 

The paper industry in the domestic market has undergone a significant pricing adjustment for virgin grades, driven by the escalating prices of pulp on a global scale and exacerbated by the ongoing Red Sea Crisis. Meanwhile, there is a huge shift in the growth rate of demand in the recycled paper packaging market. Advanced waste sorting technologies, such as the AI-based waste sorting systems developed by Greyparrot that achieve 95% accuracy in waste sorting and 18% material loss reduction, are changing waste sorting for good.
 

As a result, improvements in operational margins have been observed by SCG Packaging, one of the leading manufacturers in Thailand, with the substitution of recycled fiber for virgin pulp. Smurfit Kappa has also noted this remarkable annual cost savings achieved by increased use of recycled materials. The increased adoption of e-commerce and rapid growth of FMCG industries are making these markets ripe for cost-competitive alternatives to plastic in the form of recycled paper, driving faster crossover and adoption of these materials.
 

The Packaging and Packaging Waste Directive (PPWD) requires EU Member States to adopt measures that prevent packaging waste generation and minimize its environmental impact, including increasing the market share of reusable packaging without compromising food hygiene or consumer safety. The directive also sets recovery and recycling targets, raising overall packaging recycling goals to 65% by 2025 and 70% by 2030. In addition, regulatory mandates such as the EU’s 2025 target and penalties of up to 4% of annual turnover for non-compliance. Companies like Nestlé aim for 95% recyclable plastic packaging by 2025, and to lower the plastic supply in EU markets.

There has been a notable increase in global consumer demand for sustainable packaging. as customers are progressively steering clear of brands that utilize non-recyclable materials. This trend is illustrated by H&M Group's strategic initiative to reduce plastic packaging by 24%, opting instead for recyclable paper alternatives. Additionally, Additionally, the adoption of eco-friendly practices by Amazon, aiming to reduce single-use plastic by 80,500 metric tons, shows an annual 9% reduction in the need for single-use plastic packaging by 2023. Shifting to eco-friendly paper packaging is with certainty, easing the transition towards a global market for recycled paper packaging.
 

Recycled Paper Packaging Market Trends

• The rising interest in personalized gifting solutions coupled with do-it-yourself (DIY) crafts has led to an increased demand for recycled paper used in greeting cards, gift wraps, scrapbooks, and other handmade items. Innovative packaging and sustainable creative projects are actively being sought after by consumers, especially those who are eco-friendly. Major retailers in the United States and Europe have started selling recycled paper gift wraps and eco-friendly stationery which aligns with the consumer's sustainable preferences. There is an emerging opportunity in the market for the usage of creative designs made with recycled paper, and as the focus of consumers shifts towards sustainability, so does the opportunity for using more recycled paper in designs.
   
• As the demand for recycled paper continues to increase, there is a corresponding enhancement in the efficiency and quality of the recycling operations, driven by advancements in technology. The quality and usability of recycled fibers is being advanced with new developments, including AI robotic paper shredding, sensor-based sorting, as well as enzymatic de-inking. For example, paper mills in Germany used high-speed optical sensors for distinguishing and sorting various types of paper waste, which is a significant step in enhancing recycling efficiency. Also, Japan and Sweden are using robotic automatons in their paper sorting facilities, which lowers the cost of labor as well as improves the precision of the recycling services offered. Due to these developments, the strict quality standards set forth by manufacturers and governing bodies can more easily be met, resulting in higher market acceptance of recycled paper packaging.
   
• Recycled paper is gaining traction in the publishing and printing industries, with newspapers, magazines, and books increasingly adopting sustainable paper sources. Furthermore, governments in areas such as the European Union and North America have enacted strict regulations requiring the use of recycled paper for public printing and educational resources. As a growing number of businesses and organizations emphasize environmental stewardship, the demand for recycled paper in the publishing and printing industries is expected to propel the market's growth.
   

Recycled Paper Packaging Market Analysis

Based on type, the market is segmented into corrugated boxes, folding cartons, paper bags & sacks and others. The corrugated boxes segment accounts for the highest market share of 45.9 % in 2024, and the paper bags & sacks segment is the fastest growing segment with a CAGR of 6.1 during the forecast period.
 

Currently, the corrugated boxes market accounts for USD 109.6 billion in 2024 and is expected to grow with a CAGR of 5.2%. This is due to the robust trend toward sustainability driven by the rapid expansion of e-commerce and logistics, with manufacturers increasingly adopting advanced recycling technologies to produce stronger and more lightweight packaging from recycled paper; for example, initiatives promoted by the European Commission for sustainable packaging and industry collaborations to enhance quality control are setting new benchmarks that are expected to drive overall recycled paper packaging market growth.
 

The paper bags & sacks are currently the fastest-growing segment in the market, compounding at an annual growth rate of 6.1% and with an estimated valuation of USD 37.8 billion in 2024. The use of paper bags and sacks is increasing in the retail and food industries due to improved fiber processing technologies and regulatory drivers that enhance production and product quality. For instance, Statista’s sustainability insights highlight the introduction of eco-friendly shopping bags in Europe as a significant factor that is expected to enhance the entire recycled paper packaging ecosystem, which in turn improves the production of paper bags. The environmental benefits are further added by these measures serving as green alternatives to plastic packaging.
 

Based on grade, the recycled paper packaging market is segmented into full recycled and partial recycled. The partial recycled segment accounts for the highest market share of 56.1% in 2024, and the full recycled segment is the fastest-growing segment with a CAGR of 6.1%.
 

The partial recycled segment is currently experiencing significant growth, projected to reach USD 133.9 billion in 2024, with a compound annual growth rate of 4.3% during the forecast period. The combination of recyclable materials with unprocessed fibers to increase strength and durability in partially recycled paper packaging enables its applicability in newer sectors such as publishing and printing. Innovations in ecological fiber blending and coating have also accelerated the adoption of this resource in North American packaging industries. This will, without a doubt, assist in achieving eco-friendly and well-balanced growth in the recycled paper packaging market.
 

The full recycled segment is currently growing rapidly with a compound annual growth rate of 6.1% and is currently valued at USD 104.6 billion in 2024. The emergence of full recycled paper packaging as a dominant market trend is brought about by stringent sustainability regulations, along with improved technology for recovering and enhancing the quality of recycled fibers. As noted within the European Commission’s Circular Economy Action Plan and EPA sustainable materials management reports, sensor-based quality assessment and advanced de-inking processes have significantly improved product integrity, this has enabled the prospects of a fully recycled packaging ecosystem. This shift will revolutionize the entire market.
 

Based on end-use industry, the recycled paper packaging market is segmented into food & beverage, pharmaceuticals, consumer goods, retail & e-commerce, logistics & shipping, industrial, healthcare and others. The food & beverage industry accounted for the highest market share of 35.1% in 2024, and also the highest CAGR of 6%.
 

The food & beverage market is growing rapidly with a compound annual growth rate of 6% and is currently valued at USD 83.7 billion in 2024. The instant ready-to-eat food and beverage market is growing due to the busy lifestyle and convenience of people. These trends indicate a growing shift toward sustainable packaging that emphasizes product safety and extended shelf life, with manufacturers increasingly adopting recycled paper packaging for items such as dairy cartons, beverage carriers, and ready-to-eat food containers; for instance, regulatory mandates in the European Union and initiatives by industry leaders have driven the development of food-grade recycled coatings and barrier technologies that will insulate the heat for longer duration and will act as a safer option. This trend is shaping the overall market and will significantly boost the overall market growth in recycled paper packaging.
 

The retail & e-commerce segment is currently leading the market with an estimated valuation of USD 34.5 billion in 2024 and a compound annual growth rate of 4.8%. The rising consumer demands for sustainable practices, exacerbated by regulatory challenges, have compelled some retailers in the retail and e-commerce niches to migrate towards a recycled paper-based wrap. Take, for instance, Walmart’s recent adoption of fully recycled corrugated boxes for online delivery orders, as well as Target’s preliminary trials that integrate green packaging with in-store shopping. Similarly, Amazon, which has one of the largest logistics and supply chain networks, is driving the demand for lightweight, durable recycled corrugated boxes.
 

Based on region industry the recycled paper packaging market is segmented into North America, Europe, Asia Pacific, Latin America and MEA. In 2024, the Asia-Pacific segment accounted for the largest market share with over 33.9% of the total market share in 2024 and is also the fastest-growing region, growing at a CAGR of 6.1%.
 

The market has been expanding steadily in the United States, achieving a CAGR of 4.4% and reaching a valuation of USD 56.1 billion in 2024. The market is undergoing steady transformation due to corporate sustainability commitments and partnerships between federal and state governments. A notable example is Amazon's "Climate Pledge Friendly" initiative, which emphasizes the use of recycled paper packaging for both its private-label products and those of third-party sellers. Furthermore, states such as California have implemented legislation that prohibits single-use plastics in e-commerce, urging retailers to switch to compostable or recycled paper options. These initiatives are in line with the U.S. Plastics Pact, a coalition of companies dedicated to reimagining packaging for a circular economy. The combination of corporate leadership and local policies is set to position the U.S. as a leader in innovative recycled paper solutions.
 

The German recycled paper packaging market has been expanding steadily, achieving a CAGR of 5.2% and reaching a valuation of USD 11.5 billion in 2024. The market is experiencing positive growth due to European Union policies, including the Packaging and Packaging Waste Directive (PPWD), which mandates elevated recycling rates. Additionally, local efforts, such as the AI sorting system implemented by DS Smith and Bosch, are enhancing fiber recovery rates. Supermarket chains are being set by Lidl, which has completely switched to recycled paper bags for fresh products. Conclusion: Intensity of regulations paired with relationships between different industries will further enhance Germany’s leadership position in efficient systems for recycling paper.
 

In China, the recycled paper packaging market has been expanding, achieving a CAGR of 6.9% and reaching a valuation of USD 32.6 billion in 2024. The halt of mixed wastepaper imports has redirected focus to domestic collection systems for recycled paper, leading to an expansion of the paper recycling sector in China. This development has been further supported by collaborations with major e-commerce companies such as Alibaba’s Cainiao, which replaced plastic parcel wrappers with recycled paper for more than one billion shipments annually. China's pilot program “Zero Waste Cities” also encourages the use of circular packaging in large metropolitan areas like Shenzhen. E-commerce dominated business models, alongside China’s foreign trade restrictions, are making China more autonomous in the rapidly expanding market for recycled paper.
 

The recycled paper packaging market in Japan has been experiencing significant expansion, achieving a compound annual growth rate of 6.4% and attaining a valuation of USD 15.6 billion in 2024. The collaboration between Oji Holdings and Suntory serves as a prime example of Japan's forward-thinking strategy to improve the quality of recycled paper by leveraging robotics and material science. Their joint initiative to create beverage containers made entirely from recycled paper bottles highlights the role of cutting-edge technologies in promoting sustainable manufacturing methods. This progress is bolstered by the government's Green Growth Strategy, which offers financial support to companies adopting circular packaging solutions. With these technological advancements combined with adaptable policies, Japan is poised to expand its market presence for premium, high-quality recycled paper products.
 

In South Korea, the recycled paper packaging market is expanding, achieving a CAGR of 5.9% and reaching a value of USD 7.5 billion in 2024. South Korea’s Extended Producer Responsibility (EPR) laws impose fines on brands that do not utilize recycled materials. This is what makes retailers such as Lotte Mart get rid of plastic packaging for perishables in favor of recycled paper. The government’s “Recycling 3.0” initiative is also sponsoring AI-powered waste sorting facilities to make recycled fiber more available. Compliance to policies and regulations as well as retail adherence will enable South Korea to shift towards a circular economy for packaging materials.
 

Recycled Paper Packaging Market Share

Recycled paper packaging is an innovative and competitive sector. DS Smith has reported revenues of £6.8 billion for the year 2024 and has earned a sizeable amount from the sales of its recycled paper products. DS Smith leads the market in this segment, providing sustainable packaging products and services. As a market leader, DS Smith focuses on design and production automation processes to improve the sustainability and efficiency of their packaging solutions. By constantly striving to provide relevant market solutions, these companies lead the competition while achieving growth in the sustainable, recycled packaging industry.
 

International Paper is still utilizing its vast global network and scope of operations to streamline their production of recycled paper packaging products, which drives more revenue. By investing in valuable research and development as well as establishing strategic relationships, these firms can improve products as well as protect their market share while raising the bar for sustainable development goals, which helps foster the growth of the recycled paper packaging market.
 

Saica Group, based in Spain, is well-known for its cutting-edge paper and packaging solutions, particularly those that prioritize recycled materials. On February 12, 2024, the company announced its intention to enhance its production capacity by investing in advanced recycling facilities and digital technologies, with the goal of improving efficiency and sustainability in its corrugated and folding carton offerings. Cascades Inc., a leading Canadian company involved in sustainable packaging and tissue production, specializes in many recycled paper products, including tissue paper and corrugate containers. The company also operates in the United States where in 2024 it said it would implement new recycling technologies to enhance the recovery of fiber while reducing emissions, further solidifying its reputation as a low impact environmentally friendly packaging business.


WestRock Company, a leading provider of packaging solutions in the United States, boasts a diverse selection of eco-friendly products. On April 9, 2024, WestRock broadened its portfolio of recycled paper packaging by implementing next generation recycling technologies and pursuing strategic acquisitions, a strategy intended to address the growing market demand for sustainable packaging options.
 

Recycled Paper Packaging Market Companies

List of prominent players operating in the recycled paper packaging industry includes:

• Cascades Inc.
• Saica Group
• Pratt Industries LLC
• WestRock Company
• Sonoco Products Company
• DS Smith PLC
• Steinbeis Papier GmbH
   

Recycled Paper Packaging Industry News

• In March 2025, Germany's micro-flute paper sector demonstrated significant growth, fueled by stringent regulatory requirements and an increasing demand for sustainable packaging, which led to innovations in recycled paper products for electronics and other industries.
   
• In March 2025, Amcor introduced a new paper-based stand-up pouch tailored for coffee refills within the dry beverage category. This initiative aims to minimize carbon emissions and achieve recyclability certifications across various markets.
   
• In February 2025, EcoPack Innovations launched a line of packaging made entirely from recycled paper in Japan, targeting the premium beverage and cosmetics markets. This initiative utilizes cutting-edge robotics and material science to enhance barrier performance and promote circular economy objectives.
   
• In mid-January 2025, the South Korean government and other active partners of the Recycling 3.0 program turned their focus onto developing AI waste sorting and material recovery systems to make leftover paper more easily usable in Eco Pack packaging, making the shift from simply renaming to trying to achieve real sustainable packaging.
   

Recycled paper packaging market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue (USD Billion) from 2021 – 2034 for the following segments:

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Market, By Type 

• Corrugated boxes
• Folding cartons
• Paper bags & sacks
• Others

Market, By Grade

• Full recycled
• Partial recycled 
• Others

Market, By End Use Industry

• Food & beverage
• Pharmaceuticals
• Consumer goods
• Retail & e-commerce
• Logistics & shipping
• Industrial
• Healthcare
• Others

The above information is provided for the following regions and countries: 

• North America  
  • U.S. 
  • Canada 
• Europe  
  • UK 
  • Germany 
  • France 
  • Italy 
  • Spain 
• Asia Pacific  
  • China 
  • India 
  • Japan 
  • South Korea 
  • ANZ 
• Latin America  
  • Brazil  
  • Mexico  
• MEA  
  • UAE  
  • Saudi Arabia  
  • South Africa