Recycled Plastic Packaging Market Size - By Plastic Type (PET, HDPE, LDPE, PP, PS), By Source (Plastic Bottles, Plastic Films, Polymer Foam, Fibers), By Recycling Process (Mechanical Recycling, Chemical Recycling), By End-use Industry & Forecast, 2024 - 2032

Recycled Plastic Packaging Market Size

Recycled Plastic Packaging Market size was valued at USD 27.76 billion in 2023 and is anticipated to register a CAGR of over 10% between 2024 and 2032. The demand for sustainable packaging solutions has surged as consumers, businesses, and governments become increasingly aware of environmental issues. The global shift towards sustainability is driving the demand for packaging solutions that minimize environmental impact. This shift is driven by concerns over plastic pollution, climate change, and the broader impact of packaging waste on the planet.
 

Companies are responding by adopting sustainable practices and materials, including recycled plastics, to align with consumer preferences and regulatory pressures. For instance, in June 2024, Unilever launched a new initiative called the CIRCLE Alliance, aimed at enhancing packaging circularity and reducing plastic waste. This public-private collaboration, co-founded by Unilever, USAID, committed USD 21 million to support small businesses and entrepreneurs within the plastics supply chain, particularly in developing regions such as India, Indonesia, Vietnam, and the Philippines.
 

Technological advancements in recycling and sustainable packaging are significantly influenced by investments from both governments and private companies. These investments aim to improve recycling efficiency, enhance the quality of recycled materials, and develop innovative packaging solutions. As environmental concerns and regulatory pressures increase, both sectors are prioritizing the development and deployment of cutting-edge technologies. For instance, in July 2024, The Australian Government allocated USD 20 million to support the development of a state-of-the-art soft plastics recycling facility in Kilburn, South Australia. This facility aims to divert over 14,000 tonnes of soft plastics.
 

The high cost of recycling technologies is a significant barrier to the widespread adoption and implementation of advanced recycling systems. This challenge encompasses several aspects, including the initial capital investment required for technology development, infrastructure, and equipment, as well as ongoing operational and maintenance costs. These high costs can limit the ability of smaller companies or developing regions to implement advanced recycling solutions, which in turn affects the overall efficiency and scalability of recycling efforts.
 

Recycled Plastic Packaging Market Trends

The increased use of post-consumer recycled (PCR) plastics is a significant trend in the packaging industry driven by the need for more sustainable practices. PCR plastics are made from materials collected from consumers after they have been used, rather than using virgin plastic materials. This shift helps reduce the environmental impact of packaging by lowering the demand for new plastic production, conserving resources, and minimizing waste. The move towards PCR plastics is influenced by regulatory requirements, consumer demand for eco-friendly products, and corporate sustainability goals.
 

Major companies and regulatory bodies are advancing this trend, demonstrating a commitment to improving recycling rates and supporting a circular economy. For instance, in January 2024, Coca-Cola India and Reliance Retail have launched a sustainability initiative called "Bhool Na Jana, Plastic Bottle Lautana" aimed at enhancing the collection and recycling of post-consumer PET bottles. This initiative, which began as a pilot project in 36 Reliance Retail stores in Mumbai and Delhi.
 

Enhanced recycling infrastructure and collaboration among governments, businesses, and waste management organizations are essential for improving recycling rates and effectiveness. Investments in infrastructure, technology, and cross-sector partnerships help streamline recycling processes, increase the quality of recycled materials, and support the circular economy. For instance, in September 2023, the Biden-Harris Administration has announced a significant investment of over USD 100 million aimed at enhancing recycling infrastructure across the United States through the Environmental Protection Agency (EPA).
 

Recycled Plastic Packaging Market Analysis

Based on plastic type, the market is segmented into PET (polyethylene terephthalate), HDPE (high-density polyethylene), LDPE (low-density polyethylene), PP (polypropylene), PS (polystyrene), and others. In 2023, the PET segment accounted for the largest market share with over 37% of the revenue.
 

• The PET (polyethylene terephthalate) segment held the largest market share in recycled plastic packaging due to its widespread use and high recycling rates. PET is commonly used in beverage bottles and food packaging, making it a major component of the recycling stream. Its popularity is further supported by its well-established recycling infrastructure, which efficiently processes PET into high-quality recycled materials that are readily used in new packaging applications.
   
• Additionally, PET's strong market position is driven by its favorable properties, such as clarity, strength, and recyclability. These attributes make it a preferred choice for both manufacturers and consumers, reinforcing its dominance in the recycled plastic packaging market. The high consumer acceptance and robust recycling systems for PET contribute significantly to its leading market share.

Based on recycling process, the market is divided into mechanical recycling and chemical recycling. Chemical recycling was the fastest growing segment during the forecasted period, growing at a CAGR of over 12%. 
 

• The chemical recycling segment has emerged as the fastest growing in the recycled plastic packaging market due to its ability to handle a wider range of plastics, including those that are difficult to process with traditional mechanical recycling. Chemical recycling technology breaks down plastics into their fundamental monomers, allowing for the creation of high-quality, virgin-like recyclates from mixed and contaminated plastic waste. This process addresses some of the limitations of mechanical recycling, such as the degradation of plastic quality and the inability to recycle multi-layered or complex materials.
   
• The rapid growth of chemical recycling is also driven by advancements in technology and increased investment from both governments and private companies. These investments are enhancing the efficiency and scalability of chemical recycling processes, making them more viable and cost-effective. As a result, chemical recycling is expanding its market share, providing a crucial solution for managing plastic waste and supporting a circular economy.

Asia Pacific recycled plastic packaging market held the largest share of over 34% in 2023. The region's extensive industrial activities and growing urban populations contribute to a substantial volume of plastic waste, creating a robust demand for recycling solutions. Additionally, the increasing regulatory support and government initiatives aimed at enhancing waste management and recycling infrastructure in countries like China and India are further boosting the adoption of recycled plastic packaging.
 

The Asia Pacific market's dominance is also driven by the region's rapid economic growth and rising consumer awareness about environmental sustainability. Companies operating in the region are increasingly integrating recycled materials into their packaging to meet both regulatory requirements and consumer preferences for eco-friendly products. This growing emphasis on sustainability, combined with ongoing investments in recycling technologies and infrastructure, solidifies Asia Pacific’s leading position in the market.
 

China dominates the recycled plastic packaging market due to its vast manufacturing sector and significant volume of plastic waste. The country’s aggressive investment in recycling technologies and infrastructure, coupled with strong government policies promoting sustainability, has driven the rapid growth of recycled plastic use. China’s large-scale recycling initiatives and stringent regulations further bolster its leading position in the market.
 

The U.S. holds a substantial share of the recycled plastic packaging market, driven by its extensive industrial base and consumer demand for sustainable products. Recent regulatory measures and corporate commitments to reduce plastic waste have accelerated the adoption of recycled materials in packaging. Significant investments in recycling infrastructure and technology are enhancing the efficiency and effectiveness of plastic recycling across the country.
 

Japan is a key player in the recycled plastic packaging market, known for its advanced recycling technologies and high recycling rates. The country's strong emphasis on environmental sustainability and effective waste management systems have positioned it as a leader in utilizing recycled plastics. Japan’s rigorous recycling practices and innovative technologies support its significant market share in the sector.
 

Germany leads the recycled plastic packaging market in Europe, due to its robust recycling infrastructure and stringent environmental regulations. The country’s focus on sustainability and efficient waste management has resulted in high rates of plastic recycling. Germany's commitment to incorporating recycled materials into packaging and its supportive policies further solidify its prominent market position.
 

South Korea has emerged as a major player in the recycled plastic packaging market due to its advanced recycling technologies and strong governmental support for sustainability. The country’s comprehensive recycling programs and high consumer awareness drive the adoption of recycled plastics in packaging. South Korea’s innovative approaches and investments in recycling infrastructure contribute significantly to its market share.
 

Recycled Plastic Packaging Market Share

Amcor plc and Berry Global, Inc. hold a significant share of over 20% in the market. Amcor plc and Berry Global, Inc. lead the market with their extensive portfolios of sustainable packaging solutions and significant investments in advanced recycling technologies. These industry leaders leverage their vast experience, global reach, and technological expertise to enhance recycling processes and meet the increasing demand for eco-friendly packaging.
 

Other key players such as Sealed Air Corporation and Indorama Ventures are also making notable strides by focusing on integrating recycled materials into their packaging products and developing new technologies to improve recycling efficiency. Companies like Nampak Limited and Graham Packaging Company, L.P. contribute to the market with their innovative approaches and commitment to sustainability. The competitive dynamics are shaped by continuous advancements in recycling technology, regulatory pressures, and a growing emphasis on reducing environmental impact, driving these major players to strengthen their market positions and expand their sustainability efforts.
 

Recycled Plastic Packaging Market Companies

Major players operating in the recycled plastic packaging industry are:

• Amcor plc
• Berry Global, Inc.
• Sealed Air Corporation
• Nampak Limited
• Indorama Ventures
• Placon Corporation Inc.
• Graham Packaging Company, L.P.
   

Recycled Plastic Packaging Industry News

• In March 2024, INEOS Olefins & Polymers Europe, PepsiCo and Amcor have collaborated to launch new snack packaging for PepsiCo's Sunbites crisps brand containing 50% recycled plastic.
   
• In February 2024, Cadbury Australia partnered with Amcor to source approximately 1,000 tonnes of post-consumer recycled (PCR) plastic for its chocolate packaging.
   

The recycled plastic packaging market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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Market, By Plastic Type

• PET (Polyethylene Terephthalate)
• HDPE (High-Density Polyethylene)
• LDPE (Low-Density Polyethylene)
• PP (Polypropylene)
• PS (Polystyrene)
• Others

Market, By Source

• Plastic Bottles
• Plastic Films
• Polymer Foam
• Fibers
• Others

Market, By Recycling Process

• Mechanical Recycling
• Chemical Recycling

Market, By End Use Industry

• Food and Beverage
• Consumer Goods
• Healthcare
• Industrial
• Others

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

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