Packaging Waste Recycling Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[213+ Pages Report] According to Facts & Factors, The global packaging waste recycling market size was valued at USD 40.53 billion in 2023 and is predicted to surpass USD 63.95 billion by the end of 2032. The packaging waste recycling industry is expected to grow by a CAGR of 5.20% between 2024 and 2032.

Market Overview

Packaging waste refers to the recycling process of collecting, sorting, and repurposing used materials to come up with fresh materials. It helps lower the waste sent to landfills, thereby helping protect the environment. It also helps conserve resources by reusing raw materials.

The recycling process lowers the carbon footprint as it requires less energy to manufacture new products from used goods than procuring them from raw materials. It also helps users align with circular economy initiatives by extending the life cycle of materials and promoting sustainability.

Key Insights

• As per the analysis shared by our research analyst, the global packaging waste recycling market size is estimated to grow annually at a CAGR of around 5.20% over the forecast period (2024-2032).
• In terms of revenue, the global packaging waste recycling market size was valued at around USD 40.53 billion in 2023 and is projected to reach USD 63.95 billion by 2032.
• Growth of e-commerce is driving the growth of the global packaging waste recycling market.
• Based on end-users, the industrial segment is growing at a high rate and is projected to dominate the global market.
• Based on materials, the paper & paperboard segment is anticipated to grow with the highest CAGR in the global market.
• Based on product types, the boxes & cartons segment is projected to swipe the largest market share.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Growth of e-commerce is driving the growth of the global market.

The fast expansion of e-commerce is driving a huge demand for packaged materials, which is a major reason for the high growth rate of the global packaging waste recycling market. Additionally, increasing consumption of packaged food and beverages all across the globe is expected to support the growth of the industry. Governments all across the globe are implementing policies to encourage the recycling of packaging waste.

Also, several countries are banning single-use plastics because of sustainability issues, which is further likely to positively impact the growth of the industry. Waste management targets under the circular economy plan are also expected to fuel up the recycling capabilities of different regions.

Also, the growing awareness among people regarding the environmental impact of using plastics is further pushing them to buy brands that support recyclable packaging materials. Many educational campaigns by NGOs and other institutes are leading to higher participation of people in recycling programs.

Therefore, all these factors contribute immensely to the growth of the market globally during the forecast period. For instance, WestRock Company collaborated with Recipe Unlimited to execute the package of recyclable paperboard packaging solutions in 2022. This is expected to divert 31 million of plastics from landfills.

Restraints

• Lack of proper recycling infrastructure is expected to hinder the growth of the global market.

Inefficient recycling facilities are one of the major factors restraining the growth of the packaging waste recycling industry. However, there is a lack of organization in the waste collection and recycling system, and technology, which is further expected to negatively impact the growth of the industry.

Opportunities

• Technological advancements are expected to foster growth opportunities in the global market.

Advancements in technology, like the inclusion of AI-driven sorting systems, advanced pulping techniques, and chemical recycling, are expected to revolutionize the global packaging waste recycling market. Moreover, the development of bio-based material further lowers the complexity of recycling processes, which is also expected to support the growth of the industry. The government and many organizations are further encouraging the adoption of circular economy principles, which is leading to people's rising attention to reusing and recycling packaging materials.

However, the ongoing partnerships between the manufacturers and recyclers are further expected to widen the scope of the industry in the coming years. Increasing industrialization and urbanization all across the globe are driving the high consumption of packaged goods, thereby generating bulk recyclable packaging waste. The government is also offering subsidies, grants, and tax incentives for recycling companies, which is also expected to positively influence the growth of the industry.

Also, the increasing interest of companies in recycling content, particularly in industries like automotive, construction, and consumer goods, because of the cost savings and government policies, is further anticipated to fuel the growth of the market. For instance, Ball Corporations and Novelis unveiled the Ball Aluminum Cup, which is made of 90% recycled content in 2023. The product is expected to reduce the company's carbon footprint.

Challenges

• High cost of recycling is a big challenge in the global market.

Collecting, sorting, and processing packaging waste incurs high costs, which is a big challenge in the packaging waste recycling industry. However, there are many multi-layer composite packaging materials that are difficult to recycle and create barriers to the growth of the packaging waste recycling industry.

Report Scope

Segmentation Analysis

The global packaging waste recycling market can be segmented into end-users, materials, product types, and regions.

On the basis of end-users, the market can be segmented into food service, commercial, household, and industrial. The industrial segment will likely account for the largest share of the packaging waste recycling industry during the forecast period. The high volume of industrial waste is one of the major factors in the growth of the segment. Industries like logistics, manufacturing, and e-commerce generate bulk packaging waste like plastic, cardboard, and metal materials, which further proceeds to proper recycling systems.

Additionally, industrial sectors are subject to strict regulatory policies to dispose of their waste efficiently. Moreover, many companies are trying to align with the sustainability initiatives under ESG goals, which is further expected to support the growth of the segment. Also, many companies are adopting recyclable packaging materials like bio-based and mono-material plastics, which is further anticipated to support the growth of the packaging waste recycling industry. Recycling packaging materials is more cost-effective as it eliminates any cost associated with the procurement of raw material or their disposal. Therefore, these factors are likely to contribute significantly towards the growth of the segment.

On the basis of materials, the market can be segmented into metal, plastic, paper & paperboard, glass, wood, and others. The paper and paperboard segment is likely to dominate the global packaging waste recycling market during the forecast period. Paper and paperboard materials have high recycling rates. Also, the wide-scale use of cartons or boxes made from paper and paper boards is further expected to support the growth of the segment. The fast-growing retail, logistics, and e-commerce sector is another major factor likely to fuel the growth of the segment manifolds in the coming years.

The growing use of cups, cartons, and containers in food and beverage packaging because of its high recyclable rate is also likely to contribute towards the growth of the segment. Paper and paper boards are biodegradable in nature and, therefore, ideal for the environment's health. Government policies and corporate commitments are other major factors expected to support the growth of the segment.

On the basis of product types, the market can be segmented into jars & containers, boxes & cartons, wraps & liners, bags & pouches, bottles, and others. Boxes & cartons are the fastest-growing segment in the packaging waste recycling industry. The fast expansion of online shopping all across the globe is one of the major factors driving the growth of the segment. E-commerce expansion is driving huge demand for boxes and cartons.

However, the recyclability of these materials is easy, and it also aligns with the sustainability goals. Boxes and cartons are quite versatile in nature and can be used for products in diverse industries like healthcare, beverages, food, electronics, and many others. However, these are also ideal for packaging takeaway foods, ready-to-eat meals, and groceries. Additionally, the growing interest in eco-friendly packaging materials is further expected to support the growth of the segment. Boxes and cartons are largely made of materials that are easy to recycle. However, the advancements in sorting and pulping technologies are also expected to revolutionize the market.

Regional Analysis

• North America to dominate the global market.

North America is likely to account for the largest share of the global packaging waste recycling market during the forecast period. The US is the leading market in the region because of the ongoing public-private partnerships. Such initiatives are likely to improve the recycling capabilities, thereby expanding the scope of the regional market. Also, the implementation of EPR programs across the region is expected to drive more investments in recycling packaging waste projects.

Additionally, many companies across the region are focusing on working with closed-loop packaging systems under circular economy initiatives, which is also expected to positively impact the growth trajectory of the regional market. However, Canada is also an emerging market in the region because of the presence of mature waste management infrastructure. Also, the strict regulatory landscape, like Canada's zero plastic waste initiative and the US Solid Waste Disposal Act, is expected to further contribute immensely towards the growth of the regional market.

Asia Pacific is another major region likely to see significant growth in the coming years. Increasing packaging waste in APAC because of the rising consumption of packaged goods is one of the major factors driving the growth of the regional market. However, the fast expansion of e-commerce and urbanization are some of the major factors behind the increasing volume of waste packaging in APAC. India, China, South Korea, and other Southeast Asian countries are also contributing immensely towards the growth of the regional market.

Also, the growing consumer awareness regarding the environmental impact of plastic materials is further pushing companies to adopt eco-friendly and recyclable packaging solutions. However, technological advancements like innovation in waste sorting are further anticipated to support the growth of the industry in APAC. Therefore, such a landscape is expected to revolutionize the regional market in the coming years. For instance, Cryopak Industries came up with CryoEco in 2022. The product is a paper refrigerator solution that is based on recyclable thermal insulation.

Competitive Analysis

The key players in the global packaging waste recycling market include:

• Cleanway
• GFL Environmental
• Clean Harbors Inc.
• Waste Connections
• WM Intellectual Property Holdings L.L.C.
• Crown Holdings; Mondi Plc
• Berry Global
• DS Smith Plc.
• Westrock Company
• International Paper Smurfit Kappa Group Plc
• Ball Corporation

For instance, Mondi collaborated with Syntegon in 2023 to come up with recyclable paper packaging solutions. The acquired company is a leading manufacturer of process and packaging machinery.

The global packaging waste recycling market is segmented as follows:

By End-Users Segment Analysis

• Food Service
• Commercial
• Household
• Industrial

By Materials Segment Analysis

• Metal
• Plastic
• Paper & Paperboard
• Glass
• Wood
• Others

By Product Types Segment Analysis

• Jars & Containers
• Boxes & Cartons
• Wraps & Liners
• Bags & Pouches
• Bottles
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America