Recyclable Packaging Market Report 2026

The recyclable packaging market size has grown strongly in recent years. It will grow from $32.72 billion in 2025 to $34.97 billion in 2026 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to growth of environmental awareness among consumers, expansion of food and beverage packaging demand, increasing regulations on plastic usage, availability of recyclable raw materials, rising corporate sustainability initiatives.

The recyclable packaging market size is expected to see strong growth in the next few years. It will grow to $45.03 billion in 2030 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to increasing adoption of biodegradable packaging, rising investment in sustainable packaging innovation, expansion of e-commerce packaging demand, growing focus on carbon footprint reduction, increasing use of smart packaging solutions. Major trends in the forecast period include growing adoption of eco-friendly packaging materials, rising demand for paper-based packaging solutions, expansion of circular economy packaging models, increasing use of recycled content materials, enhanced focus on waste reduction.

The increasing implementation of stringent regulations for adopting recyclable packaging materials is expected to drive the growth of the recyclable packaging market. Governments worldwide are enforcing these regulations to reduce plastic landfill, improve waste management, and promote sustainable business practices. For instance, in March 2025, according to the American Forest & Paper Association (AF&PA), a US-based industry association, 46 million tons of paper were recycled, achieving a paper recycling rate of 65%-69% and a cardboard recycling rate of 71%-76%. In 2024, paper recycling rates were 60%-64% and cardboard 69%-74%, with U.S. mills utilizing 44.4% recycled fiber, converting nearly half of recycled paper into containerboard for packaging applications. Therefore, stringent regulations on recyclable packaging materials are driving the market growth.

Major companies in the recyclable packaging market are forming strategic partnerships to develop sustainable and recyclable packaging solutions. Strategic partnerships allow companies to leverage each other’s strengths and resources to achieve mutual benefits. For example, in June 2023, Pact Group, an Australian plastic recycler and sustainable packaging manufacturer, partnered with ALDI Australia, a grocery retailer operating over 570 stores across six states and territories, to supply recycled plastic packaging for ALDI’s own brand products. This partnership enables Pact to provide ALDI’s supply partners with more sustainable packaging options for items such as milk bottles, meat trays, fruit and vegetable punnets, beverage bottles, and shampoo bottles.

In July 2024, Smurfit Kappa Group plc, an Ireland-based provider of paper-based and recyclable packaging solutions, completed a merger with WestRock Company for an undisclosed amount. The merger allows Smurfit Kappa to expand its global presence and strengthen sustainable packaging capabilities by combining WestRock’s extensive paper and corrugated packaging network with its established fiber-based product portfolio. WestRock Company is a US-based packaging manufacturer specializing in recyclable paper, corrugated, and consumer packaging solutions.

Major companies operating in the recyclable packaging market are Amcor PLC, Tetra Laval International SA, Ardagh Group SA, Ball Corporation, Elopak AS, Mondi Plc, Sealed Air Corp, Plastipak Holdings Inc., Uflex Ltd., DS Smith Plc, Smurfit Kappa Group Plc, WestRock Co., Huhtamaki Group, Berry Global Group Inc., Gerresheimer Group AG, Sonoco Products Company, Crown Cork & Seal Company Inc., International Paper Company, Stora Enso Oyj, Graphic Packaging Holding Company, Reynolds Group Holdings Ltd., National Amalgamated Packaging Ltd., BWAY Corporation, Silgan Holdings Inc., AptarGroup Inc., Owens-Illinois Inc., Greif Inc., Pratt Holdings Proprietary Ltd., Evergreen Packaging LLC.

Western Europe was the largest region in the recyclable packaging market in 2025. Asia-Pacific is expected to be the fastest-growing region in the recyclable packaging market share during the forecast period. The regions covered in the recyclable packaging market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the recyclable packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The recyclable packaging market consists of sales of biodegradable packaging, corrugated bubble wrap and cornstarch packaging. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.