Recyclable Packaging Market is expected to grow at a 5.32% CAGR, increasing to USD 285.512 billion in 2031 from USD 209.251 billion in 2025.
Recyclable resources are used to create recyclable packaging, which is used to enclose or protect things for storage, distribution, and sale. A few benefits of recyclable packaging materials are the preservation of natural resources, the reduction of manufacturing energy, and the decrease in greenhouse gas emissions, all of which contribute to lowering the carbon footprint. Several companies have recently promised to lessen the environmental impact of their packaging in response to public criticism and awareness of this issue. Similar steps are being taken by food and beverage companies, some of whom have long been at the forefront of packaging innovation. For instance, McDonald's aims to use 100% certified, recycled, or renewable materials by the end of 2025. As of 2021, about 82.7% of McDonald's primary packaging materials and 96.8% of primary fibre packaging originate from recycled or certified sources (Source: corporate.mcdonalds.com).
Increased innovation in eco-friendly packaging
Eco-friendly packaging is constructed of recycled materials, is simple to recycle, and is safe for people and the environment. It represents a big advance toward more environmentally responsible packaging. The need for eco-friendly packaging has increased due to rising public awareness of environmental issues and the pollution generated by conventional packaging, such as plastic. This increased demand is significantly anticipated to drive expansion in the worldwide recyclable packaging market. For instance, Samsung's 2021 Sustainably Report claims that among its eco-packaging options are a variety of upcyclable TV product packaging for models like The Serif and The Sero. For example, corrugated cardboard boxes can be upcycled into goods like pet supplies and tiny furniture. The boxes can be printed with QR codes and a dot pattern matrix so that customers can verify the directions for upcycling.
Increasing concern about recycling plastic packaging waste
As a result of shifting substrate preferences and the emergence of new end industries, the global packaging market has expanded quickly during the past 10 years. In the recycling mechanisms in place today, a sizable portion of the packaging generated cannot be recycled. The rising usage of plastics to substitute other substrates and satisfy consumer demand for convenience are among the headline trends. Between 2010 and 2020, there was a 23% (+6.5 kg) increase in plastic packaging waste produced per person in Europe (Source: ec.europa.eu). The increasing use of single-use packaging containers has put a significant environmental strain on the planet. Governments are enacting rules to reduce environmental waste and enhance waste-management procedures in response to public concerns about packaging waste, particularly single-use packaging waste, on all continents. For instance, 2020 saw the implementation of new reporting requirements for recycling. One of these is a uniform calculation point for recycling, and another is a stricter fractional accounting of composite packaging materials. As a result, Europe had a nearly 3-point drop in percentage (from 41% in 2019 to an expected 38% in 2020) (Source: ec.europa.eu).
The segment with the highest sales growth will be paper packaging
By kind of packaging material, it is estimated that the paper sector will generate the most revenue throughout the forecasted time. Paper-based packaging has the highest recycling rate of any type of packaging because of well-established recycling processes and practices. Paper waste can be recycled seven times before the fibres become too fragile to be used again. Paper packaging offers clients convenient storage that is appealing, easy to use, and especially eco-friendly, which are important factors promoting the growth of this industry. For instance, in October 2022, the Finish dishwasher detergent brand introduced paper-based packaging due to a partnership between Reckitt and Mondi, to reduce over 2,000 tonnes of plastic annually, or the equivalent of 50 million 1-litre bottles. 75% paper makes up the new Finish stand-up pouch. The remaining plastic is said to provide durability, water resistance, and a resealable seal, in addition to strengthening the paper's structure.
Recyclable Packaging Market Segmentation:
By Material Type
Glass
Paper
Plastic
Metal
Tin
Aluminum
Wood
Others
By Packaging Sector
Primary
Secondary
Tertiary
By End-User
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
India
Japan
South Korea
Indonesia
Thailand
Others