Recyclable Packaging Market

Global Recyclable Packaging Market is valued at USD 31.77 Billion in 2022 and it is expected to reach USD 45.07 Billion by 2029 with a CAGR of 5.12% over the forecast period.

Scope :

Recyclable packaging refers to packaging materials that can be reused or recycled after their initial use, thereby reducing waste and environmental impact. The concept of recyclable packaging has gained widespread acceptance in recent years due to growing concerns about the environmental impact of waste and the need for sustainable practices.

The idea of recyclable packaging dates back to the 1970s when environmental concerns led to the development of various recycling programs. In the 1980s, several countries started implementing recycling policies to reduce waste and promote sustainability. The European Union, for instance, introduced the Packaging and Packaging Waste Directive in 1994, which mandated that all packaging materials must be designed and produced in a way that minimizes their environmental impact.

Recyclable packaging can be used for a wide range of products, including food and beverages, household items, electronics, and personal care products. Common materials used for recyclable packaging include paper, cardboard, glass, aluminum, and various types of plastics. The end-users of recyclable packaging are consumers who purchase products packaged in these materials. By choosing products with recyclable packaging, consumers can play an active role in reducing waste and promoting sustainability.

COVID-19 Impact:

The COVID-19 pandemic has had both positive and negative impacts on the recyclable packaging market. On the positive side, increased emphasis on hygiene and safety, particularly with respect to packaging. Recyclable packaging materials such as plastic and glass have been preferred over other materials due to their ease of cleaning and disinfection. The pandemic has led to increased awareness about sustainability and the need to reduce waste. This has led to a renewed focus on recyclable packaging as a way to reduce waste and promote sustainability.

However, on the negative side, the pandemic has led to disruptions in the global supply chain, including the supply of raw materials for recyclable packaging. This has led to a shortage of packaging materials and increased costs for manufacturers. The pandemic has also led to a reduction in demand for certain types of recyclable packaging, particularly those used in the hospitality and tourism industries. This has led to a decrease in the production of these materials and reduced revenue for manufacturers.

Key Players:

Some major key players for the global Recyclable Packaging market report cover prominent players like

• Amcor plc
• Tetra Pak International S.A.
• Ball Corporation
• Sealed Air Corporation
• Sonoco Products Company
• Bemis Company Inc.
• Huhtamaki Oyj
• Mondi plc
• Smurfit Kappa Group
• WestRock Company
• DS Smith plc
• Gerresheimer AG
• Ardagh Group S.A.
• Berry Global Inc.
• Coveris Holdings S.A.
• Graphic Packaging International LLC
• International Paper Company
• Nippon Paper Industries Co. Ltd.
• Owens-Illinois Inc.
• Silgan Holdings Inc.
• Stora Enso Oyj
• Uflex Limited
• Winpak Ltd.
• Be Green Packaging
• BioPak Pty Ltd
• ECO Products Inc.
• Vegware Ltd.
• Pacqueen Industrial (Shanghai) Co. Ltd.
• Anchor Packaging Inc.
• ProAmpac LLC
• Pregis LLC
• Sappi Limited
• KapStone Paper and Packaging Corporation
• Visy Industries
• Jindal Films
• Novolex Holdings Inc.
• Greif Inc.
• Cascades Inc.
• EnviroPAK Corporation
• TIPA Corporation Ltd.
• Intertape Polymer Group Inc.
• Holfeld Plastics
• Placon Corporation
• The Scoular Company
• Genpak LLC
• Printpack Inc.
• RPC Group plc
• Klöckner Pentaplast Group
• PolyOne Corporation
• Sabert Corporation.
• and others.

Segmentation: 

By Material Type:

• Glass
• Paper
• Plastic
• Tinplate
• Wood
• Aluminum
• Biodegradable plastics
• Recycled papers

By Packaging :

• Paper & Cardboard

  • Bubble Wrap
  • Void Fill Packaging
  • Pouches & Envelopes

By End-User:

• Food
• Beverage
• Pharmaceutical
• Personal Care
• Logistics
• Others

By Regional & Country Level:

• North America

  • U.S.
  • Canada

• Europe

  • U.K.
  • France
  • Germany
  • Italy

• Asia Pacific

  • China
  • Japan
  • India
  • Southeast Asia

• Latin America

  • Brazil
  • Mexico

• Middle East and Africa

  • GCC
  • Africa
  • Rest of Middle East and Africa

North America:

North America is one of the largest markets for recyclable packaging, driven by increasing demand for sustainable packaging solutions and growing environmental concerns. The US is the largest market for sustainable packaging in North America, with a strong focus on environmental sustainability and a growing demand for eco-friendly packaging in the food and beverage industry. However, according to the Sustainable Packaging Coalition, 61% of consumers in the United States say they are willing to pay more for sustainable packaging. And by Ipsos in 2020, 77% of Americans are concerned about the environment, and 70% believe it is important to live a sustainable lifestyle.

Europe:

Europe is a major market for recyclable packaging, as the region has strict regulations regarding waste management and environmental protection. The European Union has set ambitious targets to increase the use of recyclable and sustainable packaging materials, such as the goal of achieving 100% reusable or recyclable plastic packaging by 2030.

In addition, there is growing demand from consumers for eco-friendly packaging options, particularly in the food and beverage industry. This has led to the development of innovative and sustainable packaging solutions, such as biodegradable and compostable materials, to meet the needs of both consumers and regulators.

the European Consumer Organisation found that 73% of European consumers believe that reducing packaging waste is important and that 72% of consumers are willing to pay more for eco-friendly packaging options.

Revenue Generation Model:

Recyclable packaging can generate revenue for businesses in several ways. Companies that use recyclable packaging can market their products as environmentally friendly, which can appeal to eco-conscious consumers. Additionally, businesses can save money on waste disposal fees and may even be eligible for government incentives for using sustainable packaging materials.

Supply Chain Model:

The supply chain for recyclable packaging involves several stages, including sourcing raw materials, manufacturing, distribution, and disposal. Companies that produce recyclable packaging must ensure that their materials are sustainably sourced and that their manufacturing processes are energy-efficient and minimize waste. Distributors and retailers must also ensure that products packaged in recyclable materials are properly handled and stored to maintain their recyclability.

Value Chain Model:

The value chain for recyclable packaging includes all stakeholders involved in the production, distribution, and consumption of products packaged in these materials. This includes suppliers of raw materials, manufacturers of packaging materials, distributors, retailers, and end-users. Each stakeholder has a role to play in ensuring that recyclable packaging is produced and used in a way that maximizes its environmental benefits.

Market Drivers:

Growing awareness about environmental sustainability and the need to reduce waste: Consumers and governments are increasingly concerned about the impact of non-recyclable packaging on the environment, leading to a shift towards sustainable packaging solutions. This trend is expected to continue as more companies prioritize sustainability and consumers become more aware of their environmental impact. The demand for recyclable packaging is also being driven by government regulations and initiatives promoting the use of sustainable packaging materials.

However, in the United States, the National Recycling Coalition found that 74% of Americans believe that recycling is important and that 94% would recycle more if it were easier to do so. And the European Union (EU) has set a target to recycle 50% of all plastic packaging waste by 2025 and 55% by 2030, as part of its efforts to transition to a circular economy.

The increased demand for packaged goods, particularly in the food and beverage industry: It is a major driver for the recyclable packaging market. As the global population continues to grow, the demand for packaged food and beverages is also increasing. Additionally, the trend toward convenience foods and ready-to-eat meals is driving the growth of the packaged food market. Companies in the food and beverage industry are increasingly seeking sustainable packaging solutions to meet consumer demand and reduce their environmental impact.

For example, the Centers for Disease Control and Prevention (CDC) notes that ready-to-eat foods are a major source of foodborne illness in the United States, causing an estimated 1.2 million illnesses each year.

Market Restraints:

High cost of production compared to non-recyclable packaging materials: One of the main restraining factors for recyclable packaging is the high cost of production compared to non-recyclable packaging materials. Recyclable packaging requires specialized machinery and processes, as well as higher-quality materials, which can increase the cost of production. This can make recyclable packaging less competitive in price compared to non-recyclable packaging, which can be a deterrent for some companies.

For example, according to Sustainable Packaging Coalition, the cost of using recycled polyethylene terephthalate (rPET) for bottles can range from 2% to 7 % per pound more than virgin PET. Similarly, using recycled high-density polyethylene (rHDPE) for milk jugs can cost around 15 % per pound more than virgin HDPE.

Limited availability of raw materials for certain types of recyclable packaging: The limited availability of raw materials for certain types of recyclable packaging can be a significant restraint for the industry. Some types of recyclable packagings, such as biodegradable or compostable materials, rely on specific raw materials that may be more difficult to obtain or produce in large quantities. Additionally, fluctuations in the availability or cost of these materials can impact the availability and cost of recyclable packaging.

The Sustainable Packaging Coalition reports that the use of biodegradable plastics in packaging has increased in recent years, with the market expected to grow by over 15% annually through 2022.

Opportunity factors:

• Growing demand for biodegradable and compostable packaging materials
• Technological advancements in recycling processes and materials
• Increasing investments in research and development of sustainable packaging solutions
• Growing adoption of eco-friendly packaging solutions in emerging markets
• Development of innovative and customized packaging solutions for specific products and industries.

Market Trends:

Product And Technology Development:

• Development of innovative materials such as biodegradable plastics, bio-based plastics, and plant-based materials
• Advancements in recycling technologies, such as chemical recycling and mechanical recycling
• Development of smart packaging solutions that can monitor product freshness and improve sustainability
• Adoption of automation and digitalization in the packaging industry, which can improve efficiency and reduce waste.

Customer Trends:

• Growing preference for products with sustainable and eco-friendly packaging
• Increased awareness about the environmental impact of packaging materials
• Growing demand for convenient and easy-to-use packaging solutions
• Increasing interest in transparent and informative packaging that allows customers to make informed decisions about their purchases.

Competition In The Recyclable Packaging Market:

The market for recyclable packaging is highly competitive, with numerous players operating globally. Some key strategies adopted by market players to stay competitive include: Focus on product innovation and the development of sustainable packaging solutions, expansion of production facilities and distribution networks, strategic partnerships and collaborations with suppliers and customers, acquisition of smaller players to expand their market reach and product offerings, development of strong marketing and branding strategies to differentiate their products from competitors.

Past And Future Strategies By Key Market Players:

• Acquisitions and mergers to expand their product portfolio and market reach, such as Amcor's acquisition of Bemis Company
• Investment in research and development to develop sustainable and innovative packaging solutions, such as Tetra Pak's launch of a plant-based packaging material
• Partnership with other companies and organizations to promote sustainable packaging practices, such as Smurfit Kappa's partnership with The Better Packaging Co. to develop sustainable packaging solutions for e-commerce
• Expansion of production facilities in emerging markets, such as Mondi's investment in a new production plant in Russia
• Development of customized packaging solutions for specific industries and products, such as WestRock's development of a sustainable packaging solution for fresh produce.

 Key Benefits of Global Recyclable Packaging Market Report–

• Global Recyclable Packaging Market report covers in-depth historical and forecast analysis.
• Global Recyclable Packaging Market research report provides detailed information about Market Introduction, Market Summary, Global market Revenue (Revenue USD), Market Drivers, Market Restraints, Market Opportunities, Competitive Analysis, and Regional and Country Level.
• Global Recyclable Packaging Market report helps to identify opportunities in the marketplace.
• Global Recyclable Packaging Market report covers extensive analysis of emerging trends and competitive landscape.