Recycling Flexible Packaging Market Insights for 2034

Recycling Flexible Packaging Market Strategic Growth, Innovation and Investment Trends

The recycling flexible packaging market is booming, poised for a revenue surge into the hundreds of millions from 2025 to 2034, driving a revolution in sustainable transportation. In 2024, Europe led the market, with mechanical recycling, pouches, plastic, and food & beverages as top segments. From 2025 to 2034, Asia Pacific, chemical recycling, bags, and biopolymers are set to grow at the fastest pace.

Last Updated: 10 June 2025 Category: Eco-Friendly Packaging Insight Code: 5588 Format: PDF / PPT / Excel

Recycling Flexible Packaging Market Size and Regional Production Analysi

The recycling flexible packaging market is accelerating, with forecasts predicting hundreds of millions in revenue growth between 2025 and 2034, powering sustainable infrastructure globally. The growing awareness among consumers to use eco-friendly packaging of the products they use or reusable packaging has raised the demand for such recycling in the flexible packaging market.

Key Insights

  • Europe dominated the global market in 2024.
  • Asia Pacific is expected to grow at a notable CAGR from 20245 to 2034.
  • By recycling method, the mechanical recycling segment held the major revenue share in 2024.
  • By recycling method, the chemical recycling segment is expected to grow at the fastest CAGR in the market during the forecast period.
  • By packaging type, the pouches segment dominated the global market in 2024.
  • By packaging type, the bags segment will expand significantly between 2025 and 2034.
  • By material type, the plastic segment held the major revenue share in 2024.
  • By material type, the biopolymers segment is projected to grow at the fastest CAGR between 2025 and 2034.
  • By end use, the food and beverages segment contributed the biggest revenue share in 2024.
  • By end use, the pharmaceuticals segment is expected to grow at the fastest CAGR between 2025 and 2034.

Recycling Flexible Packaging Market: Eco-Friendly Packaging Option

Recycling flexible packaging comprises collecting and processing resources such as pouches, bags, and bottles into new products. This procedure sometimes distinguishes the resources from separate impurities and removes them before redesigning them into a different material. It is a process that reduces the waste materials from the landfills. It is estimated that around 50% of flexible packaging is recyclable in the U.S. All the plastic used in grocery bags, bread bags, and other products is made up of polyethylene, which can easily be recycled. These types of packaging require non-rigid resources that permit more customizable and economical options.

Rising Demand for Adoption of Minimalist Packaging

The rising demand for acceptance of minimalist packaging is driven by decreasing excess resources and a focus on important components. It allows to utilize of thin resources, fewer layers, and compact packaging designs.

Demand for Compostable Packaging

The demand for compostable packaging is huge in the packaging industry. The rising consumer preference for sustainable packaging and regulatory pressure has raised the demand for such packaging in this market.

Rising Shift towards Edible Packaging

The growing concern for functionality and sustainability has enhanced the demand for edible packaging. These packages are majorly made from biodegradable materials such as proteins, seaweeds, and starch that provide an environment-friendly substitute to outdated plastic packaging.

Metric Details
Major Drivers - Rising environmental concerns and strict packaging regulations
- AI integration in sorting and recycling
- Growth of the circular economy
Leading Region Europe
Market Segmentation By Recycling Method, By Packaging Type, By Material Type, By End-Use Industry and By Region
Top Key Players Amcor, Mondi, DS Smith, Berry Global, Constantia Flexibles, Sealed Air, Huhtamaki, UFlex, Stora Enso, Plastipak, Clondalkin, Casella, Crown Holdings, Borealis

How Can AI Improve the Recycling of the Flexible Packaging Market?

The role of AI in the recycling flexible packaging market is transformative as it is used for the selection of materials while manufacturing packaging for several products according to the requirements. Several flexible resources, like multilayered composites and plastic films, were difficult to recycle because of their complex combination. Various artificial intelligence technologies are utilized for deep learning, and technologies that provide appropriate shape, size, and structure, which are easy to recycle multiple times. This improves the accurateness of unravelling food-grade packaging from other non-food-grade materials mixed together, this process enhances the quality of recycled productions.

Market Dynamics

Driver

Rising Concern for the Ecological Effects Boosts

The increasing concern among people towards the ecological impact of the packages has enhanced the demand for the recycling of the flexible packaging market. The growing concern for plastic waste globally has raised the demand for options that can be either decomposed or recycled multiple times. There are several strict guidelines associated with the packaging industry, which have raised the standard for manufacturing packaging that can be recycled for several other usage. The growing ecological impact is influencing producers and brands to use packaging with a circular solution.

Technological advancement is one of the major factors responsible for the development of the recycling flexible packaging industry. The constant innovation in the recycling technique and material science has made the recycling process of the packaging industry more feasible. Techniques with AI incorporation, mono material designs, and chemical recycling have enabled a higher rate of recycling and enhanced material recovery. The promotion of the circular economy worldwide has encouraged companies to adopt recyclable packaging for products.

Restrain

High Charges Association

The high charge for production of the recycling flexible packaging has hindered the growth of the market. It includes several processes such as selection of suitable resources, distinguishing recyclable waste from non-recyclable, and several others that have disturbed the growth of the recycling flexible packaging market.

Opportunity

Continuous Evolving Preferences of the Consumers

The recycling flexible packaging market shows considerable opportunities, particularly due to changing preferences of the consumers, technological advancement, and strict government regulations. The major market players are introducing advancements in this sector due to the continuous changes in the demand of consumers. It has opened the scope of the market by enlarging the options for evolution. The development of recycling technology has made the distinguishing process easy, which ultimately speeds up the process of recycling efficiently.

With the incorporation of AI tools, it becomes easy to break down the particles and then recycle the entire packaging. The multiple recycling process has become extremely suitable for consumers looking for eco-friendly packaging options. The continuous supervisory effort of the government has also enhanced this technique of recycling packaging easy, as with the strict selection of materials for the manufacturing process, the recycling procedure speeds up.

Segmental Insights

Mechanical Recycling Dominates Market in 2024

Mechanical recycling methods require less energy, are scalable, and cost-effectiveness in comparison to other methods available in the industry. It comprises the physical reprocessing of the plastic wastes generated via steps such as shredding, washing, and then remelting of plastics to transform them into a new structure without disturbing their chemical properties. These simple steps make it an attractive option for bio-degradable substances and manage the plastic waste generated efficiently.

The chemical recycling segment is expected to grow rapidly due to the rising demand for high-performance cleaning services has influenced the demand for chemical recycling processes. These break down complicated or contaminated plastic products into simpler for and recycle them by melting into different structures. Due to chemical recycling, it is possible to produce high-quality multi-layered composite flexible packaging.

Why do Pouches Dominate the Recycling Flexible Packaging Market in 2024?

The pouches segment dominates the global market as it plays an important role due to its affordability, light-weight nature, versatility, and convenience to utilize, making it perfect to use for consumers. Pouches are well-known for their barrier properties that help to preserve the freshness of the products and extend their shelf life. The rising inclination towards sustainable products raises the demand for these recyclable pouches.

The bags segment is expected to grow at the fastest rate in the market during the forecast period of 2024 to 2034. These are widely used in industries such as agriculture, food, retail, and healthcare, emphasizing their practicality and versatility. These bags are highly adaptable to a wide range of products, which makes them a suitable choice for consumers as well as manufacturers.

Which Material Type Dominated the Recycling Flexible Packaging Market in 2024?

The plastics segment dominated the recycling flexible packaging market in 2024. This is due to the lightweight nature, enhanced barrier properties, and durability of the plastic packaging. These packages are considered ideal for protecting the freshness of the food products and extending their shelf life. The highly recyclable plastic is polyethylene terephthalate (PET), which is widely used due to its strength and clarity. Revolution in the recycling technologies has improved the capacity to process contaminated or mixed plastic waste, which enlarges the possibility of recyclable resources.

Biopolymers adoption is growing rapidly due to the renewable source used for these packages has its own ecological benefits. These biopolymers are made up of agricultural waste, corn starch, and sugarcane, which are sustainable substitutes for petroleum-based plastic materials. Their biodegradability has made them appealing due to growing ecological concerns and strict regulations.

Food and Beverages Sector Faces Growing Demands

The food and beverages sector has a huge demand for bags and pouches that can be recycled easily and utilized multiple times has influenced the development of the market. These can easily be customized into multiple shapes and sizes, which increases their utilization in multiple ways. The rising customer demand for sustainable packaging of products has propelled the acceptance of recycling flexible packaging.

The pharmaceuticals segment is expected to grow at the fastest rate due to the strong requirement for packaging that can provide safety to the products during delivery. Packaging such as high-barrier films, blister packs, and pouches provides required protection against light, moisture, and oxygen, which ensures the shelf-life and efficiency of the products.

Regional Insights

Continuous Technological Advancement Europe Promotes Dominance

Europe held the largest share of the recycling flexible packaging market in 2024, due to the advancement in technology in countries such as the U.K., Germany, Spain, Norway, Denmark, Italy, and several others. The demand for recyclable packaging is high in sectors such as cosmetics, pharmaceuticals, electronics, food and beverages, and many other fields. The strict packaging regulations are one of the major reasons behind the growth of the market.

Asia Pacific Leading Rapid Urbanization and Strict Government Rules Support Growth 

Asia Pacific is estimated to grow at the fastest rate in the recycling flexible packaging market during the forecast period. In countries such as India, China, Japan, South Korea, and several others, there is a rapid urbanization, which has raised the demand for reducing landfills and has influenced the demand for recycling flexible packaging. Countries like Japan and South Korea are known for their waste management technique, and they have an effective recycling system.

Recycling Flexible Packaging Market Key Players

Recycling Flexible Packaging Market Companies

  • Mondi
  • DS Smith
  • Amcor
  • Berry Global
  • Constantia Flexibles
  • Sealed Air
  • Crown Holdings
  • Huhtamaki Oyj
  • UFlex
  • Ball Corporation
  • Casella recycling
  • Clondalkin Group
  • Plastipak Holdings
  • Stora Enso

Latest Announcements Industry Leaders

  • In March 2025, Borealis Commercial Director Consumer Products Flexibles, Peter Voortmans, expressed, "With its impressive 85% post-consumer recyclate content, this new rLLDPE grade represents a major step on the path to a circular economy for plastics. Borcycle™ M CWT120CL will help our customers meet their sustainability targets while maintaining the high-performance standards required for demanding flexible packaging applications—just one of the ways we’re re-inventing essentials for sustainable living.”

New Advancements in the Recycling Flexible Packaging Market

  • In March 2025, Borealis announced the launch of Borcycle™ M, which is a flexible packaging with 85% PCR content. (Source: Borealis)
  • In January 2025, Huhtamaki India hosted the 2nd edition of Think Circle at the Embassy of Finland in New Delhi in partnership with the Embassy of Finland and the knowledge partner Confederation of Indian Industry (CII). (Source: Packaging Strategies)

Recycling Flexible Packaging Market Segments

By Recycling Method

  • Mechanical Recycling- Dominated
  • Chemical Recycling- Fastest

By Packaging Type

  • Pouches- Dominated
  • Bags- Fastest
  • Wraps
  • Films
  • Sachets
  • Laminates

By Material Type

  • Plastic- Dominated
  • Polyethylene (PE)
  • Polypropylene (PP)
  • Polyethylene Terephthalate (PET)
  • Paper
  • Biopolymers- Fastest
  • Aluminum Foil (in laminates)

By End-Use Industry

  • Food and Beverages- Dominated
  • Pharmaceuticals- Fastest
  • Personal Care and Cosmetics
  • Household Chemicals
  • Industrial Packaging
  • Others (e.g., electronics, pet food)

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Sweden
    • Denmark
    • Norway
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Thailand
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East and Africa (MEA)
    • South Africa
    • UAE
    • Saudi Arabia
    • Kuwait
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  • Insight Code: 5588
  • No. of Pages: 150
  • Format: PDF/PPT/Excel
  • Last Updated: 10 June 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Yogesh Kulkarni is an experienced Research Analyst specializing in the packaging sector, with a strong foundation in statistical analysis and market intelligence. He currently contributes his expertise to Towards Packaging.

Learn more about Yogesh Kulkarni

Aditi Shivarkar, with 14+ years in packaging market research, specializes in food, beverage, and eco-friendly packaging. She ensures accurate, actionable insights, driving Towards Packaging 's excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

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FAQ's

Yes, these can be recycled in storefront bins.

Due to multiple polymers and multi-layer.

Yes.

PIB, UNIDO.