Recyclable Packaging Market - Size, Industry Share, Growth Trends and Forecasts (2023 - 2031)

By Material Type :

The material type is categorized into paper, wood, glass, plastic, metal, and others. In 2022, the paper segment accounted for the highest recyclable packaging market share of 38.86% in the recyclable packaging market. Paper is an incredibly versatile and extensively used material in packaging due to its flexibility to create various types of packaging such as cardboard boxes, cartons, paper bags, wrapping paper, and more. Paper is valued for its lightweight, yet sturdy properties, making it suitable for various products across industries. One of the significant advantages of paper-based packaging is recyclability. Recycled paper fibres are potentially utilized to produce new paper-based packaging products, reducing the requirement for virgin materials and minimizing environmental impact. Additionally, compared to many other packaging materials, paper has a much lower environmental impact as it is made from a renewable resource (trees) and often requires less energy and water to produce than other alternative materials. As a result, as per the recyclable packaging market analysis, owing to the several benefits provided by paper the segment is gaining significant expansion.

Moreover, the plastic segment is expected to hold the fastest CAGR over the forecast period. Common recyclable plastics include PET (polyethylene terephthalate, used in bottles), HDPE (high-density polyethylene, often used in containers), PVC (polyvinyl chloride), LDPE (low-density polyethylene), PP (polypropylene), and PS (polystyrene). As the mission for more sustainable plastic packaging is ongoing, exciting new technologies such as chemical recycling and bioplastics are expected to bring new opportunities to the recyclable packaging market. Furthermore, an increase in the adoption and recycling of plastic packaging is expected to fuel the segment's expansion.

For instance,

• In October 2023, Coca-Cola announced the launch of its cola brand Coca-Cola in rPET bottles in pack sizes of 250 ml and 750 ml. According to the company, the bottles are made from 100% food-grade rPET excluding caps and labels, and will drive consumer awareness on the packs.

Thus, the rising use of recyclable plastic for packaging trends is expected to fuel the segment's expansion.

By Packaging Type :

The packaging type is categorized into flexible and non-flexible. In 2022, the flexible segment accounted for the highest market share in the recyclable packaging market and is also expected to hold the fastest CAGR over the forecast period. Flexible packaging refers to the packaging materials that can conform to the shape of the product being packaged. Flexible packaging reduces product damage as it can be easily molded and the product can be stored according to convenience. Additionally, flexible packaging is highly customizable, cost-effective, lightweight, and offers enhanced product preservation. Moreover, flexible packaging material provides enhanced sustainability as the materials used for flexible packaging are recyclable and compostable. Furthermore, the rising adoption of flexible packaging by packaging companies is expected to increase its requirement.

For instance,

• In October 2023, Pakka launched India's first compostable flexible packaging in collaboration with Brawny Bear, India's pioneer in date-based food manufacturing to enhance the sustainability of products.

Thus innovative recyclable and flexible plastic solution for packaging is expected to propel the flexible packaging segment.

By End Use Industry :

The end-use industries segment is categorized into food and beverage, pharmaceuticals, cosmetics and personal care, and others. In 2022, the food and beverage segment accounted for the highest market share in the overall recyclable packaging market. Packaging within the food and beverage sector serves multiple critical roles beyond just containing and protecting products. It plays a pivotal role in preserving freshness, extending shelf life, ensuring safety, providing information to consumers, and influencing purchasing decisions. Additionally, effective packaging of products preserves the quality, flavour, and nutritional value of food and beverages by creating a barrier against environmental factors like moisture, oxygen, and light. In the food and beverage sector, these packaging plays a crucial role in addressing environmental concerns while ensuring the safety and preservation of products. These packaging solutions in this sector aim to reduce waste, promote sustainability, and meet consumer demands for eco-friendly options. Similarly, the expanding food and beverage sector is increasing the requirement for such packaging which is potentially fueling the segment growth.

Moreover, the cosmetics and personal care segment is expected to hold the fastest CAGR over the forecast period. Cosmetics and packaging go hand-in-hand, with each element playing a crucial role in the success of a product. Cosmetic packaging is often the first physical interaction a customer has with a brand. Eye-catching designs, luxurious materials, and innovative formats grab the attention, convey brand values, and create a lasting positive impression. Additionally, the packaging of cosmetics and personal care products plays a vital role in protecting the product from damage, contamination, and environmental factors like light, and moisture. This ensures the product maintains its quality, efficacy, and safety for consumers. Similarly, refillable containers and reusable packaging components are gaining popularity, allowing consumers to refill their favorite products while minimizing waste, hence effectively recycling the packaging. Furthermore, the growing cosmetics sector is expected to boost the recyclable packaging market demand.

For instance,

• According to the data published by the International Trade Administration on May 07, 2022, the cosmetics market in Canada generated approximately USD 1.24 billion in revenue in 2021 and it is expected to grow by 1.45% annually to reach USD 1.8 billion by 2024. This increases the demand for recyclable packaging in the cosmetic industry over the forecast period.

Thus, the growing cosmetics sector is expected to bring new growth opportunities to the segment.

By Region :

The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.

In 2022, Europe accounted for the highest market share at 34.10% valued at USD 9,742.37 Million in 2022 and USD 10,081.94 Million in 2023, it is expected to reach USD 14,145.54 Million in 2031. In Europe, Germany accounted for a major market share of 23.07% in the year 2022. The recyclable packaging market across the European region is growing owing to government initiatives and strict regulations like the packaging and packaging waste directive, promoting the use of recyclable materials and encouraging manufacturers to take responsibility for post-consumer packaging waste. These regulations incentivize innovation and adoption of sustainable packaging solutions. Additionally, the increasing consumer awareness and recycling of products in this region is creating strong market demand for these packaging, driving companies to cater to these preferences. Moreover, Europe possesses several prominent players in the packaging sector, with concentrated expertise in research and development, promoting continuous advancements in packaging technologies. As a result, owing to the above mentioned factors, the European region is gaining significant dominance in the recyclable packaging market trends.

Furthermore, the Asia Pacific region is expected to witness significant growth over the forecast period, growing at a CAGR of 4.9% during 2023-2031. The significant economic growth in urbanization and the well-established number of consumers for goods are expected to increase the demand for recyclable packaging across the region. Additionally, growing environmental consciousness is expected to promote the demand for recyclable packaging in industries in the Asia Pacific region.

For instance,

• According to the report by the Public Information Bureau in June 2022, India has banned the manufacture, import, stocking, distribution, sale and use of identified single-use plastic items, which have low utility and high littering potential, all across the country from July 1, 2022. Thus, the increasing initiatives by the governments of the countries in the Asia Pacific are expected to fuel the demand for recyclable packaging further boosting the market growth.