Recycled Packaging Market

According to Stratistics MRC, the Global Recycled Packaging Market is accounted for $230.73 billion in 2025 and is expected to reach $400.58 billion by 2032 growing at a CAGR of 8.2% during the forecast period. Recycled packaging helps to lessen waste and its impact on the environment by using materials that have already been used and processed. Paper, cardboard, plastic, and metal are among the materials that are gathered, cleaned, and reprocessed to make new packaging items. Because it reduces landfill usage, carbon emissions, and the use of natural resources, recycled packaging is essential to the cause of sustainability. Moreover, businesses from a variety of industries are embracing it more and more as part of their corporate social responsibility and eco-friendly practices. 

According to the U.S. EPA’s 2020 Recycling Economic Information (REI) report, recycling and reuse activities in the United States generated 681,000 jobs, $37.8?billion in wages, and $5.5?billion in state and local tax revenues—equating to about 1.17 jobs per 1,000 tons of material recycled.

Market Dynamics:

Driver: 

Growing sustainability initiatives and environmental concerns

A major factor in the move toward sustainable packaging is the growing awareness of global environmental problems like plastic pollution, deforestation, and greenhouse gas emissions. The public, NGOs, and governments are pushing businesses to use environmentally friendly practices, which has increased demand for recycled packaging. Additionally, the circular economy model, zero-waste targets, and sustainability certifications are all pushing manufacturers to incorporate recycled materials into their packaging processes in order to close the loop.

Restraint:

Expensive recycled materials and recycling procedures

Contrary to popular belief, the sorting, cleaning, and processing necessary for recycling can make the process costly, particularly for plastic and multi-material packaging. The cost of recycling is increased by the infrastructure required, such as Material Recovery Facilities (MRFs), sophisticated sorting equipment, and labor. Therefore, recycled materials frequently end up costing more than virgin materials, particularly during periods of low oil prices (a vital component of virgin plastic). Furthermore, large-scale adoption of recycled packaging is discouraged by this cost disparity, especially in markets where consumers are price-sensitive.

Opportunity:

Advances in recycling technologies and material science

The recycling sector is undergoing a revolution owing to emerging technologies like chemical recycling, plastics degradation by enzymes, and AI-enabled waste sorting. These developments aid in resolving long-standing issues such as contamination, material deterioration, and low complex packaging recycling rates. For example, plastic waste can be broken down into its monomers through chemical recycling, producing high-quality recycled plastic that can be used in applications where it comes into contact with food. Moreover, businesses can increase the variety of recyclable packaging options and open up profitable opportunities by investing in R&D for these technologies.

Threat:

Low quality and contamination of recyclables

The contamination of recyclable materials at the consumer level or during the collection process is one of the largest threats to recycled packaging. The usability of collected waste is greatly reduced by improper disposal, food residue, and the mixing of incompatible materials. Particularly for delicate industries like food or healthcare, contaminated recyclables can harm recycling machinery or produce low-grade recycled material that does not satisfy performance or safety standards. 

Covid-19 Impact: 

The market for recycled packaging was affected by the COVID-19 pandemic in a variety of ways. Initially, less recyclable material was collected and processed as a result of supply chain limitations, labour shortages, and lockdowns that disrupted recycling operations. Sustainability objectives were momentarily sidelined by the spike in demand for single-use packaging, particularly in the food, e-commerce, and healthcare industries. But the pandemic also raised awareness of packaging waste and environmental problems, which led to businesses and governments bolstering circular economy initiatives. Investment in recycled and sustainable packaging solutions accelerated as the market rebounded, setting up the industry for greater expansion in the years following the pandemic.

The bottles & jars segment is expected to be the largest during the forecast period

The bottles & jars segment is expected to account for the largest market share during the forecast period. These containers, which are commonly composed of PET, HDPE, and glass, are preferred because of their strong recyclability, excellent barrier qualities, and extensive use in the food, beverage, and pharmaceutical sectors. For sustainable packaging transitions, they are especially well-suited due to their material stability and capacity to be recycled repeatedly without suffering appreciable quality loss. Moreover, bottles and jars continue to be essential to circular packaging initiatives as manufacturers raise the amount of post-consumer recycled (PCR) material to satisfy demand from environmentally conscious consumers and regulatory requirements.

The e commerce & logistics segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the e commerce & logistics segment is predicted to witness the highest growth rate because of the rapid expansion of internet shopping and the growing need for environmentally friendly delivery options. In an effort to lessen their environmental impact, businesses are using recycled corrugated boxes, paper mailers, and protective fillers more frequently as millions of packages are shipped every day. Additionally, this trend is being accelerated by consumer preference for environmentally friendly packaging and government policies that support circular economy principles, making e-commerce and logistics the market's fastest-growing end-use segment.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share, driven by major economies like China, India, and Japan's increasing environmental regulations, high population density, and fast industrialization. Recycled packaging materials like paperboard, PET, and corrugated fiberboard are in high demand due to the region's growing e-commerce industry and growing awareness of sustainable practices. The market has grown even faster as a result of government programs that support circular economy models and better recycling infrastructure. Furthermore, Asia-Pacific is a major player in determining the global recycled packaging market due to its affordable manufacturing capabilities and growing uptake of eco-friendly packaging by both domestic and international brands.

Region with highest CAGR:

Over the forecast period, the South America region is anticipated to exhibit the highest CAGR, driven by growing demand for sustainable packaging across the consumer goods and industrial sectors, changing regulatory frameworks, and growing environmental awareness. Countries like Chile, Mexico, and Brazil are enacting waste reduction laws that promote the use of recycled materials and bolstering their recycling infrastructure. The use of eco-friendly packaging is also being fueled by growing e-commerce, urbanization, and corporate sustainability pledges. Moreover, Latin America is emerging as a rapidly expanding center for innovation in recycled packaging solutions as global brands localize sustainable practices in the region.

Key players in the market

Some of the key players in Recycled Packaging Market include International Paper Company, Ardagh Group SA, Crown Holdings, Inc., Gerresheimer AG, Amcor Plc, PlastiPak Holdings Inc., WestRock Company, Berry Global Inc., Mondi Group, DS Smith Inc, Ball Corporation, Nampak, Genpak, Smurfit Kappa, TIPA Corp., Sealed Air Corporation, Tetra Pak and Uflex Limited.

Key Developments:

In January 2025, International Paper Company and DS Smith announced that they had reached an agreement to combine DS Smith with International Paper. This deal is set to be implemented by a court-sanctioned arrangement under Part 26 of the Companies Act 2006. Announced by both International Paper and DS Smith, the deal was approved by the majority of DS Smith Shareholders.

In November 2024, Amcor plc and Berry Global Group, Inc. have announced a definitive merger agreement to unite in an all-stock transaction. Upon closure, Berry shareholders will receive 7.25 Amcor shares per Berry share, giving Amcor and Berry shareholders approximately 63% and 37% ownership in the combined entity, respectively. The deal values Berry’s stock at $73.59 per share and has received unanimous board approval from both companies.

In August 2024, Crown Laboratories, Inc. and Revance Therapeutics, Inc. announced that they have entered into a merger agreement pursuant to which the companies seek to merge the two complementary organizations.  Under the terms of the agreement, which has been unanimously approved by Revance's Board of Directors, Crown will commence a tender offer to acquire all outstanding shares of Revance's common stock for $6.66 per share in cash, representing a total enterprise value of $924 million.

Materials Covered:
• Plastic
• Glass
• Paper & Paperboard
• Wood
• Metal
• Other Materials

Packaging Types Covered:
• Bottles & Jars
• Bags & Pouches
• Boxes & Cartons
• Trays & Containers
• Drums & Cans
• Other Packaging Types

Applications Covered:
• Food & Beverage
• Healthcare & Pharmaceutical
• Personal Care & Cosmetics
• Industrial & Chemical
• Electronics
• E-commerce & Logistics
• Other Applications

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances