Recyclable Packaging Market Report

The paper & paperboard option is considered a leading segment in the whole recycled packaging market. The demand for paper and paperboard is expected to be high, and it is renewable and biodegradable materials, which makes them a suitable choice for various packaging. According to the data from the National Library of Medicine, paper and paperboard hold more than 31% of the global packaging market segment and are majorly used in food packaging. As it can be easily sorted, processed, and collected, the demand for paper and paperboard is expected to rise. Also, the use of recycled packaging is primarily done in healthcare sector products such as oxygen and anesthetic masks, oxygen tubing, etc.

Thus, the rising healthcare sector is expected to boost the demand for recycled packaging. According to the data of the World Economic Forum, global healthcare spending has increased by 40% from 2018 to 2022, which was summed at US$ 12 trillion. Also, according to the data of the European Federation of Pharmaceutical Industries and Associations, the global pharmaceutical market amounted to US$1.1 trillion and is expected to grow more due to rising concerns and diseases. 

The major challenge that is faced by the recyclable packaging market manufacturing is the cost included in recycling the products. Recycling includes infrastructure, which is considered a high expenditure for the manufacturer, as well as manpower that is technologically sound and knows how to operate the infrastructure. Also, the available alternatives in the market act as a challenge for the recyclable packaging market. The available alternatives include plastic packaging, bioplastic, etc., which, compared to recyclable packaging, are cheaper and provide more functionality than recyclable packaging. Furthermore, an additional problem that is faced by the manufacturers is regarding what material is used in packaging, as eco-friendly packaging breaks down easily, but the challenge here is that it needs to be correctly disposed of; if not, it will be considered waste, which will contribute to environmental pollution.

In September 2023, Mondi introduced recyclable paper packaging for Veetee's dry rice. The British sustainable packaging and paper company, in collaboration with rice supplier Veetee, announced the introduction of new recyclable paper-based dry rice packaging. Mondi said it was the first time a paper-based dry rice packaging solution had been launched in the UK market. The two companies worked in close coordination to create the entire solution via customization and to ensure that it met the specific requirements of dry rice products.

In February 2022, Crown Holdings, a US-based beverage, and food can manufacturer, announced new aluminum can recycling commitments across its global operations. The commitment, planned to be achieved by 2030, was in line with the company's Twentyby30 program goals to enhance the circular economy. Under the new targets, Crown aimed to increase its beverage can recycling rate in the US to 70% by 2030 from the previous target of 45%. The company also aimed to further increase this to 80% by 2040 and reach a recycling rate of 90% by 2050. In Mexico, Crown aimed to maintain a recycling rate of more than 90% until 2030, while the company aimed to exceed 97% by 2030 in Brazil.

The European recyclable packaging market is considered a lucrative market due to the stringent regulations and supportive environmentally friendly packaging policy. Also, the explosion of the food industry in Europe is expected to grow demand for the recyclable packaging market. Thus, due to strict policies and the rising food and beverage industry, Europe can be considered a lucrative market. Also, due to the rising e-commerce and packaging industries, Asia Pacific can be considered a lucrative market. India, due to its vast demand for various industries, can be considered a potential country, and according to the data of Invest India, the Indian packaging sector is projected to reach the mark of US$ 204.81 billion by 2025, registering a compound annual growth rate of 26.7% for the 2020-2025 period.

Also, the e-commerce market in China is expected to experience rapid growth, and according to the International Trade Association, the total transactions for the e-commerce sector in 2020 reached US$ 2.29 trillion and is expected to reach the target of US$ 3.56 trillion by the end of 2024, and thus China has been named as the global largest market for the e-commerce market. Also, in 2021, China registered a total revenue from the e-commerce sector that amounted to US$ 1.5 trillion. Thus, due to this, Asia-Pacific is considered a lucrative market.