Today, economic development is impossible without packaging: it makes products convenient to use and recognizable, protects them from mechanical damage, and ensures their transportation. Increasingly, manufacturers are considering the possibility of incorporating recycled packaging materials into their operations, and some are even successfully producing packaging from recycled materials and using it to market their products.
Let's explore the factors that will drive the development of this industry in the coming years.
High Demand for Packaging
According to Mordor Intelligence, the packaging market size was valued at USD 1.14 trillion in 2024. Over the next five years, the market will grow at a compound annual growth rate of 3.89% to reach USD 1.38 trillion by 2029.
Packaging market size according to Mordor Intelligence data
Analysts attribute this growth to several factors, including rising living standards and consumer demand. The development of the food industry, which accounts for over a quarter of the world's packaging materials, is driving the production of bottles, cans, lids, films, and other products—often essential for maintaining the freshness and safety of food. Another significant driver is the growth of e-commerce, as online stores and delivery services require stylish and reliable boxes, bags, and other solutions.
In terms of market segmentation by packaging type, plastic remains the most popular—accounting for 40–50% of packaging products. A significant share of packaging is also made from cardboard and paper (up to 20–30%), metal (up to 15–20%), and glass (up to 10–15%).
Environmental Situation
Given that plastic is the most commonly used material in packaging production, minimizing plastic waste has become a focal point for environmentalists, manufacturers, governments, and consumers alike.
According to the UNEP (the United Nations' primary environmental agency), over 430 million tons of plastic are produced annually worldwide, with more than a third of this volume used for packaging. At the same time, over 290 million tons of plastic waste are generated each year, with about 12% of this volume coming from packaging.
In this context, there is a growing global demand for environmentally friendly packaging solutions. A survey of Amazon customers revealed that 94% of respondents are concerned about plastic pollution, and 89% would prefer to purchase products without plastic packaging.
Moreover, an increasing number of consumers are striving to reduce their environmental impact and are opting for packaging that can be reused or safely disposed of. As a result, manufacturers are turning to biodegradable plastics, compostable materials, and recycled resources.
Technological Advancements
Leading global companies are actively seeking efficient and sustainable packaging solutions. They are testing various technologies that enable the creation of packaging from recycled materials.
One of the most popular technologies for producing packaging from recycled plastic is mechanical recycling, which involves collecting, shredding, and melting plastic. This method requires less investment than chemical recycling. For example, INEOS Styrolution uses mechanically recycled polystyrene to produce yogurt cups. European manufacturer Greiner Packaging has even mastered the production of cups made from 100% mechanically recycled polystyrene.
Another widely used technology is the chemical recycling of plastic waste. This process breaks down polymers into their basic components, allowing the creation of new materials. This ensures the purity of the recycled material and opens up opportunities for its use in food packaging.
Although chemical recycling is still considered a new technology, there are already successful projects. For instance, German conglomerate BASF and Israeli company StePac have jointly developed eco-friendly packaging from chemically recycled polyamide-6—a film for packaging fresh produce. The use of chemically recycled plastic helps preserve the quality of products like passion fruit for extended periods, reducing food waste and greenhouse gas emissions.
PepsiCo Europe has also launched chips in packaging made from 50% recycled materials. This was made possible through collaboration with six supply chain partners: Green Dot, Plastic Energy, Ineos Olefins & Polymers Europe, Irplast, Amcor, and PepsiCo. The packaging is produced using thermal anaerobic conversion technology. According to Plastic Energy, chemically recycled plastic has a lower climate and resource impact compared to virgin plastic—producing 1 kg of low-density polyethylene through chemical recycling emits 0.86 kg of CO2, which is 55% less than producing 1 kg of plastic from fossil fuels.
There are also interesting examples of packaging production from non-plastic recycled materials. For instance, UK-based company FrugalPac started producing wine bottles made from 94% recycled cardboard a few years ago. Italian wine producer Cantina Goccia was among the first to adopt this innovation. Other brands, such as American organic wine producer Signal 7 Wines, Spanish brand Planet, and Australian brand Mother of Pearl Spirits, have also embraced cardboard packaging.
Many other companies are prioritizing environmental sustainability by working to reduce their carbon footprint and optimize production processes. At Rubber Plast Pharm, we also plan to start using recycled materials for packaging production. This will not only reduce waste but also create additional competitive advantages in the global market.
Challenges and Prospects
Despite the significant potential that analysts see in this segment, the market for recycled packaging is still relatively small. In 2023, research firm Global Market Insights estimates it at USD 27.76 billion. At a compound annual growth rate of 10%, the market will grow to USD 67 billion by 2032.
Recycled packaging market size according to Global Market Insights
One of the most significant obstacles to the development of this industry is economic factors. For example, when it comes to plastic packaging, it is cheaper to use virgin raw materials for its production—the high costs of collection, sorting, processing, and searching for efficient technologies make this process less attractive for business.
Other barriers to the development of the packaging recycling industry include challenges in waste sorting. Firstly, separate waste collection systems are not developed in all countries. Secondly, when sorting, citizens do not always separate shrink labels, caps, and other elements from bottles, cans, and packages that can be recycled separately.
It is important that large corporations and the government join projects to recycle used packaging, which can invest in technology development and support those who replicate successful solutions and engage in educational activities. Today, many manufacturers are unaware of the opportunities to incorporate recyclables into production, or if they are, they are skeptical.
One notable public-private partnership project that addresses these challenges is the CIRCLE alliance, which brings together consumer packaged goods manufacturer Unilever, the United States Agency for International Development, and consulting firm EY. The co-founders of the alliance provide funding, mentoring, and resources to entrepreneurs who are developing innovative solutions for the collection and recycling of plastic waste.
To actively utilize recycled materials in packaging production, comprehensive changes are needed. It is important to improve the infrastructure for waste collection and sorting to increase the availability of quality recyclable material. The development of recycling technologies, such as chemical and mechanical methods, is also key, as they can make the process more affordable and efficient. Equally important is the involvement of large corporations and government entities that can support recycling initiatives through funding, subsidies, and outreach programs. This will help reduce skepticism among manufacturers and accelerate the transition to sustainable technologies.
The use of recycled materials opens up new perspectives for manufacturers. Not only does it lower raw material costs and reduce carbon footprints, but it also improves the reputation of companies in the eyes of environmentally conscious consumers. It also helps to meet international standards, which is particularly important for accessing global markets.
In conclusion, the development of packaging recycling is not merely a trend but a necessity that will define the future of the industry. Sustainable production is emerging as a tool not only to address environmental challenges but also to create competitive advantages in the global market.
