Packaging Recyclers Market Size, Share, Growth, Trends, and Global Industry Analysis: By Material Type (Paper & Paperboard, Plastics, Metals, Glass, and Others), By Technology (Mechanical Recycling, Chemical Recycling, and Others), By Source of Waste (Post-consumer, Post-industrial, and Others), By End User (Food & Beverage Packaging, Personal Care Packaging, Industrial Packaging, Construction, Automotive, Textiles, and Others), and Region Forecast 2020-2031

Packaging Recyclers Market size was valued at US$ 209.3 billion in 2024 and is projected to reach US$ 318.9 billion by 2031, growing at a CAGR of 6.2% from 2025-2031. Moreover, in the USA, the Packaging Recyclers Market size was valued at US$ xx million in 2024 and is projected to reach US$ xx million by 2031, growing at a CAGR of xx% from 2025-2031.

Packaging recyclers are companies, public bodies, or consortia that collect, sort, process, and re-manufacture used packaging materials such as plastics, paper, glass, and metals into secondary raw materials, thereby enabling a circular economy. Their role is critical in reducing dependence on virgin resources, cutting greenhouse gas emissions, and meeting regulatory recycling targets.

According to the European Commission, the EU generated about 84 million tonnes of packaging waste in 2021, equivalent to 188.7 kg per person, and in 2022 about 41% of plastic packaging was recycled. In the United States, the Environmental Protection Agency (EPA) estimates that around 96 million tons of packaging material waste are produced annually, with an overall recycling rate of 39%. However, for plastics specifically, only 13.3% of packaging is recycled, despite about 36% being technically recyclable or compostable, as highlighted by the U.S. Plastics Pact. This gap reflects challenges like contamination, insufficient infrastructure, and weak collection systems. Governments are addressing these issues through stricter policies, such as the EU’s Packaging and Packaging Waste Regulation, which mandates recyclability, minimum recycled content, and reduction of single-use packaging to accelerate progress toward environmental and climate goals.

Key Takeaways

Integration with circular economy models is increasing, as brands are designing packaging for multiple reuse and easier recyclability, not just single-use disposal.

Collaboration with recycling startups is accelerating innovation, enabling conversion of multilayer and composite packaging into high-quality recyclate for new containers.

Digital tracking and labelling of packaging waste is emerging, helping companies monitor recyclability, ensure compliance with Extended Producer Responsibility (EPR), and optimize material recovery.

Key Developments

• In August 2025, Closed Loop Partners, a private equity firm focused on sustainable investments, acquired Agri-Cycle, a leading provider of organics collection services for commercial and industrial sectors across the U.S. This acquisition aims to enhance the circular economy by improving organic waste management and recycling infrastructure.
• In August 2025, SIG, a global packaging company, has partnered with Australian winemakers to launch the country's first fully recyclable bag-in-box wine packaging. This initiative aims to promote sustainability in the wine industry by offering recyclable packaging options.
• In July 2025, TerraSafe, a North Carolina-based materials innovation company, merged with DisSolves, a dissolvable film packaging startup. The merger resulted in the launch of two new plastic-free products: water-soluble laundry detergent sheets and edible pod packaging, aiming to reduce plastic waste in household products.
• In June 2025, Mondi, a global leader in sustainable packaging, partnered with Saga Nutrition, a French pet food manufacturer, to create recyclable packaging for Saga’s dry pet food range. This collaboration focuses on developing eco-friendly packaging solutions to reduce environmental impact.
• In June 2025, Versalis, the chemical arm of Italian energy giant Eni, launched a demonstration plant featuring its new "Hoop" technology for recycling mixed plastic waste. This innovation transforms diverse plastic materials into feedstock for producing new plastics, including those safe for food and pharmaceutical use.

Packaging Recyclers Market Segmantation

Based on the Material Type

• Paper & Paperboard
• Plastics
• Metals
• Glass
• Others

Plastics dominate the global packaging recyclers market due to their extensive use in consumer goods, e-commerce, and food packaging. India’s plastics recycling sector, estimated at 9.9 million tonnes in 2023 and projected to reach 23.7 million tonnes by 2032, benefits from a 95% PET bottle recycling rate, a 30% recycled content mandate by 2025, advanced food-grade recycling technologies, and a workforce of 5 million rag pickers

Based on the Technology

• Mechanical Recycling
• Chemical Recycling
• Others

Mechanical Recycling: Mechanical recycling remains the leading method for processing post-consumer plastics, such as PET and HDPE, into reusable materials without altering their chemical structure. In the U.S., the recycling rates for PET bottles and jars and HDPE natural bottles were 29.1% and 29.3%, respectively, in 2018. This process is favored for its cost-effectiveness and scalability, supporting circular economy initiatives and efficiently handling packaging waste.

Based on the Source 

• Post-consumer
• Post-industrial
• Others

Post-consumer waste is the leading segment in the packaging recyclers market, comprising packaging materials discarded by end-users after product use. It drives high recycling demand due to increasing consumer awareness, regulatory mandates for sustainable packaging, and growing e-commerce, which generates substantial volumes of recyclable packaging materials annually.

Based on the End User

• Food & Beverage Packaging
• Personal Care Packaging
• Industrial Packaging
• Construction
• Automotive
• Textiles
• Others

The food and beverage packaging segment is a leading driver in the packaging recyclers market, fueled by growing demand for sustainable and recyclable containers. Rising consumer preference for eco-friendly packaging, regulatory mandates on recyclability, and increased food delivery services are boosting adoption of recycled materials in this sector globally.