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The recycled materials packaging solutions market size is forecast to increase by USD 63.4 billion, at a CAGR of 4.82% between 2023 and 2028. Market growth in recycled plastics is propelled by several key factors: rising demand from the packaging industry for sustainable materials, stringent regulations promoting eco-friendly practices, and government initiatives supporting the use of recycled materials. These dynamics underscore a shift towards sustainable practices across industries, driven by environmental concerns and regulatory pressures. Additionally, the organized retail segment's expansion further drives demand for recyclable packaging solutions, aligning with consumer preferences for environmentally responsible products. This convergence of regulatory mandates, corporate sustainability goals, and consumer awareness is reshaping the plastics industry landscape. As businesses and governments prioritize sustainability, the market for recycled plastics is poised for continued growth, offering opportunities for innovation and investment in recycling technologies. This trend not only addresses environmental challenges but also supports economic growth through the development of a circular economy model focused on resource efficiency and reduced environmental impact.
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The market is witnessing significant growth due to the increasing awareness and concern towards environmental sustainability. Developed economies are leading the shift towards using recyclable materials in packaging solutions, with resources such as glass, aluminum, plastic water bottles, paper, and electronics being the most commonly recycled. Recycling metal scrap, paper, textile, wood, wire, cables, rubber, and other waste materials has become a priority to reduce the reliance on virgin resources and minimize the impact on the environment. The recycling process involves the recovery and reprocessing of waste materials into new packaging solutions. This not only reduces the demand for trees and energy used in the production of new materials but also helps in reducing the use of ozone-depleting substances and the amount of waste that ends up in landfills. Plastics, including microplastics, are a major concern due to their non-biodegradable nature. Recycling plastics helps in reducing their accumulation in the environment and minimizing the production of new plastics from fossil fuels. The market for recycled materials packaging solutions is expected to continue growing as more and more companies adopt sustainable practices and consumers demand eco-friendly products. The collection, processing, and manufacture of recycled materials are key areas of focus for market players to ensure the availability of high-quality recycled materials for packaging solutions.
Increasing demand for recycled plastics from packaging industry is notably driving market growth. The global shift towards sustainable and eco-friendly practices has significantly influenced the packaging industry's adoption of recycled materials. In particular, recycled plastics have gained prominence due to their extensive use in various applications. According to estimates, over 30% of the world's plastic production is utilized in the packaging sector, making it the leading contributor to annual plastic waste generation. Recycled plastics find extensive use in manufacturing a diverse range of packaging solutions. These include FDA-approved food packaging, plastic containers, bottles, closures, jars, engineered pumps, sprayers, and caps. The use of recycled plastics in packaging not only reduces the demand for new raw materials but also minimizes the environmental impact of production processes.
Further, the packaging industry's recycling initiatives extend beyond internal processes. External recycling programs encourage consumers to separate and dispose of waste materials in recycling bins instead of trash bins. Recyclable materials such as metals, copper tubing, spent grain mash, ferrous metals, scrap metal, and ferrous products are collected and processed for reuse. Nonferrous metals like copper, lead, and aluminum, as well as organic waste materials such as bark, wood chips, lignin, cullet, construction, and demolition debris, concrete, sand, gravel, brick, and Portland cement concrete, asphalt concrete, municipal solid waste, garbage, and rubbish, are also recycled and repurposed in various industries. Recycling initiatives for plastics, metals, and other materials not only help reduce the burden on Air, Water, and Land but also contribute to the circular economy by reducing the need for virgin resources. The use of recycled materials in packaging solutions is a crucial step towards creating a sustainable and eco-friendly future. Thus, such factors are driving the growth of the market during the forecast period.
Growing use of recycled materials packaging solutions in ecommerce industry is the key trend in the market. The global e-commerce market's expansion is fueling the demand for recycled materials packaging solutions. Given that packaging contributes substantially to the overall weight of products shipped in e-commerce, it is essential for businesses in this sector to adopt eco-friendly alternatives to mitigate the environmental impact of packaging waste. Recycled materials, such as metals, copper tubing, and plastics derived from air, water, and land, are increasingly being used to create protective packaging solutions for various products, including electronics, glass items, and fragile goods. For instance, metals like ferrous and nonferrous are recycled extensively in the production of packaging materials. Ferrous metals, such as scrap metal and ferrous products, are used to make cans, tins, and other containers. Nonferrous metals, including copper and lead, are used in the production of various packaging components, such as lids and closures.
Moreover, recycled materials are also used in the production of cellulose products, such as paper and paperboard, which are commonly used for packaging. Bark, wood chips, lignin, and cullet are some of the raw materials used in the production of these cellulose-based packaging solutions. In addition, construction and demolition debris, including concrete, sand, gravel, brick, and Portland cement concrete, asphalt concrete, municipal solid waste, garbage, and rubbish, are also being recycled and repurposed for use in packaging applications. Organic waste, such as spent grain mash from the distilling industry, is also being converted into humus, which is used as a soil conditioner and as a raw material in the production of biodegradable packaging solutions. Tires are recycled to produce rubberized asphalt pavements and crumb rubber modified asphalt concrete, which are used in the production of packaging pallets and other transportation packaging solutions. Overall, the adoption of recycled materials in packaging solutions offers several benefits, including reduced dependence on virgin resources, reduced greenhouse gas emissions, and lower production costs. As the e-commerce market continues to grow, the demand for recycled materials packaging solutions is expected to increase, driving the growth of the global recycled materials packaging solutions market. Thus, such trends will shape the growth of the market during the forecast period.
Lack of awareness and acceptance of recycled materials packaging solutions is the major challenge that affects the growth of the market. In the global market for recycled materials packaging solutions, the use of bio-based polymers faces challenges in developing and underdeveloped countries due to low penetration and insufficient awareness. The absence of adequate infrastructure and the presence of price-sensitive buyers, who constitute a significant portion of the market, favor cost-effective and readily available packaging solutions over recycled materials. In these regions, petroleum-based polymer resins are more popular due to their affordability compared to bio-based polymers. Factors hindering the acceptance of recycled materials packaging solutions include various other issues as well. For instance, the recycling infrastructure is not well-established in many parts of the world, leading to challenges in collecting and processing recyclable materials. Additionally, the quality and consistency of recycled materials can vary, which can impact the performance and reliability of packaging solutions made from these materials. Moreover, certain materials, such as spent grain mash, bark, wood chips, lignin, cullet, construction and demolition debris, concrete, sand, gravel, brick, and Portland cement concrete, are more challenging to recycle and convert into packaging solutions. This is due to their unique properties and the lack of economically viable processes for their recycling. In the context of packaging solutions for specific materials, metals, such as copper tubing, ferrous metals, scrap metal, and ferrous products, can be recycled and reused effectively. However, the recycling process for metals requires significant energy input and infrastructure, which can increase the cost of the recycled material. Similarly, nonferrous metals, such as copper and lead, can be recycled and used in packaging solutions.
However, the recycling process for these metals also requires significant energy input and infrastructure, which can increase the cost of the recycled material. In the case of non-metallic materials, asphalt pavements, tires, and cellulose products can be recycled and used in packaging solutions. For instance, recycled tires can be used to make rubberized asphalt, while cellulose products, such as bark and wood chips, can be converted into pulp and used to make paper-based packaging solutions. In summary, the global recycled materials packaging solutions market faces challenges in developing and underdeveloped countries due to the lack of infrastructure, insufficient awareness, and price sensitivity of buyers. The recycling of certain materials, such as spent grain mash, bark, wood chips, lignin, cullet, construction and demolition debris, concrete, sand, gravel, brick, and Portland cement concrete, is more challenging due to their unique properties and the lack of economically viable recycling processes. However, metals, such as copper tubing, ferrous metals, scrap metal, and ferrous products, as well as nonferrous metals, such as copper and lead, can be recycled and used in packaging solutions. Additionally, non-metallic materials, such as asphalt pavements, tires, and cellulose products, can also be recycled and used in packaging solutions. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The food and beverages segment is estimated to witness significant growth during the forecast period. The Recycled Materials Packaging Solutions Market encompasses various materials derived from Air, Water, and Land, which are utilized for sustainable packaging applications. Recycling bins and trash bins serve as essential collection points for different waste streams, including Ferrous metals like copper tubing and Spent grain mash from the distilling industry, and Ferrous products such as coke, ammonia, and Scrap metal. Nonferrous metals like Copper, Lead, and Aluminum are also extensively used in packaging solutions.
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The food and beverages segment accounted for USD 144.30 billion in 2018. Additionally, recycled materials find extensive application in the production of Asphalt pavements, Tires, Cellulose products derived from Bark, Wood chips, Lignin, and Cullet. In the construction sector, recycled Concrete, Sand, Gravel, Brick, and Portland cement concrete, as well as Asphalt concrete, are widely used. Municipal solid waste, Garbage, and Rubbish are converted into Organic waste, Humus, and other valuable resources, reducing the burden on Landfills. The recycling of Construction and demolition debris, or C&D debris, is another significant area of focus, contributing to the circular economy and reducing the need for virgin raw materials.
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APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market for recycled materials packaging solutions has gained significant traction in the Developed world as there is a growing emphasis on resource conservation and reducing the environmental impact of packaging. Recyclable materials such as glass, aluminum, and plastic water bottles are increasingly being used to create sustainable packaging solutions. These materials are derived from various waste streams, including metal scrap, paper, electronics, computers, cellular phones, batteries, textiles, wood, wire, cables, rubber, and more. The recovery and reprocessing of these waste materials prevent the felling of trees, conserve energy, and reduce the amount of waste sent to landfills. Recycled materials offer a viable alternative to raw materials such as petroleum, natural gas, coal, and mineral ores. Plastics, in particular, have been a major concern due to the issue of microplastics and pollution.
Further, by recycling plastic waste, we can reduce the production of new plastic and the associated environmental harm. Similarly, the recycling of iron and steel scrap, aluminum cans, and glass bottles reduces the need for mining and extraction of raw materials. The collection, processing, and manufacture of recycled materials into packaging solutions require significant investment and infrastructure. However, the benefits to the environment and the potential cost savings make it a worthwhile endeavor. The use of recycled materials in packaging also aligns with the circular economy model, which aims to minimize waste and maximize resource efficiency.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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The market is a significant sector that focuses on the production and utilization of recycled resources for creating sustainable packaging solutions. This market encompasses various materials such as glass, aluminum, plastic water bottles, paper, electronics, textile, wood, wire, cables, rubber, and more. Developed economies are leading the way in the adoption of recycled materials for packaging solutions due to increasing environmental concerns and the depletion of raw materials like petroleum, natural gas, coal, and mineral ores. The use of recycled materials like metal scrap from aluminum cans and glass bottles, paper from trees, and plastic water bottles, helps reduce the dependence on virgin materials and minimizes the energy consumption and pollution associated with their production. Recycled materials also offer cost advantages as they are often cheaper than raw materials.
Further, the recycling process involves the recovery and reprocessing of waste materials, which includes collection, sorting, cleaning, and manufacturing. Recycled materials like iron and steel scrap, batteries, and rubber are also used extensively in various industries, including electronics, computers, cellular phones, and automobiles. The recycling process helps in reducing solid waste in landfills and minimizing the environmental impact of pollution from plastic microplastics and other waste materials. The market for recycled materials packaging solutions is expected to grow significantly due to increasing awareness and regulations promoting the use of sustainable packaging solutions.
Market Scope |
|
Report Coverage |
Details |
Page number |
141 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.82% |
Market growth 2024-2028 |
USD 63.4 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.35 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 43% |
Key countries |
US, China, UK, Germany, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amcor Plc, BASF SE, BioPak Pty Ltd., DS Smith Plc, DuPont de Nemours Inc., Elevate Packaging Inc., Friendly Trader Pty.Ltd., International Paper Co., Kruger Inc., Mondi Plc, Ranpak Holdings Corp., Sealed Air Corp., Smurfit Kappa Group, Tetra Laval SA, and WestRock Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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