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June 2025
The global upcycled materials in packaging market is booming, poised for a revenue surge into the hundreds of millions from 2025 to 2034, driving a revolution in sustainable transportation. The key players operating in the market are focused on adopting inorganic growth strategies like acquisition and merger to develop advance technology for manufacturing upcycled materials in packaging which is estimated to drive the global upcycled materials in packaging market over the forecast period.
Packaging created from recycled or repurposed materials that would otherwise be thrown away as garbage is referred to as upcycled packaging. Upcycling preserves or increases the material's value, in contrast to typical recycling, which frequently degrades material quality. Upcycled packaging turns what would otherwise be waste into useful packaging materials by utilizing commodities like post-consumer items, scrap textiles, or agricultural byproducts. The key characteristics of upcycled packaging is waste minimization, sustainability, and innovation. By reusing waste materials, upcycled packaging contributes to a decrease in the quantity of waste that ends up in landfills. It lessens the impact of package production on the environment by encouraging the use of renewable resources. In order to transform garbage into useful, premium packaging, the upcycling process frequently calls for inventive and imaginative solutions.
| Metric | Details |
| Market Drivers | E-commerce growth Environmental awareness Regulatory support |
| Leading Region | Europe |
| Market Segmentation | By Material Type, By Packaging Form, By End-Use Industry and By Region |
| Top Key Players | Amcor Plc, Mondi Group, Berry Global Inc., Smurfit Kappa, Ball Corporation, Mauser Packaging Solutions. |
Brands are increasingly integrating upcycled materials (e.g., agricultural by-products, food waste, and textile scraps) into packaging to align with circular economy goals. Upcycling helps reduce raw material extraction and carbon footprint, appealing to eco-conscious consumers.
Consumers are favouring products with visible sustainability credentials, such as “packaged with upcycled materials” or “zero-waste packaging. Certifications and eco-labels (e.g., *Upcycled Certified*) are becoming powerful marketing tools.
New packaging materials are emerging from fruit peels, coffee grounds, spent grains, and even mushroom mycelium. Companies are also blending upcycled fibers with bioplastics or recycled paper to enhance functionality.
FMCG companies, particularly in the food, beverage, and cosmetics sectors, are embracing upcycled packaging to meet ESG targets. Brands like Nestlé and L’Oréal are exploring upcycled inputs for secondary and primary packaging.
Regulatory push in the U.S., EU, and other regions for reduced packaging waste and recycled content mandates is encouraging businesses to explore upcycled options. Tax incentives and subsidies for using waste-derived packaging materials are becoming more common.
Companies are including upcycling in their sustainability roadmaps as part of net-zero, waste-reduction, and circularity targets. Some brands are disclosing the percentage of upcycled content in packaging as part of their ESG reporting.
Upcycled packaging is especially prevalent in premium, artisanal, or organic product lines, where consumers are willing to pay more for sustainability. This trend is also fostering new startups focusing solely on upcycled packaging solutions.
In order to forecast the behaviour of innovative materials and find candidates with desirable qualities for eco-friendly packaging, such as biodegradability, strength, and barrier properties, Al algorithms may examine enormous databases of chemical properties, molecular structures, and performance characteristics. Al-driven design tools can optimize packaging materials' composition, structure, and processing parameters to improve performance, use less material, and have a less environmental effect throughout the course of a product's lifecycle. By taking into account elements including raw material extraction, production, transportation, use, and end-of-life disposal, Al-powered life cycle assessment systems may evaluate the environmental impact of packaging materials in order to find areas for improvement and guide sustainable design choices. Al algorithms can optimize packaging design for composability, reusability, and recycling, allowing for the creation of packaging solutions that limit resource consumption, waste production, and environmental contamination while also supporting the ideals of the circular economy.
Growing awareness of climate change, plastic pollution, and resource depletion has fuelled demand for eco-friendly packaging. Upcycled materials offer a low-impact alternative by diverting waste from landfills and reducing reliance on virgin resources. E-commerce growth leads to a surge in shipping and secondary packaging needs (boxes, fillers, pouches, labels). This creates a large-scale opportunity for eco-friendly alternatives like upcycled cardboard, paper, or biodegradable fillers derived from agricultural or industrial waste. Consumers are becoming more conscious of excessive packaging and its environmental impact. Platforms that use and promote upcycled packaging can build a sustainable brand image, increasing customer loyalty and trust.
Large e-commerce platforms (like Amazon, Shopify, Flipkart) can mandate or incentivize the use of sustainable packaging by sellers. This pushes thousands of vendors toward sourcing upcycled packaging materials to comply with platform policies or earn sustainability badges. E-commerce platforms have data analytics tools to target eco-conscious shoppers with "green" products and packaging. Featuring products that use upcycled packaging in search filters or sustainability categories can increase their visibility and market demand. Platforms can implement take-back or reuse programs that collect used packaging and route it back for upcycling. This helps build a circular logistics model, where waste from delivery becomes raw material for future packaging.
The key players operating in the upcycled materials in packaging market is facing issue due to limited and inconsistent raw material supply and regulatory hurdles. Upcycled packaging depends on waste streams (e.g., agricultural waste, food scraps, textiles) that may be seasonal, inconsistent, or contaminated. This leads to supply chain disruptions and quality control challenges. Food safety and packaging regulations can be hard to meet with upcycled materials due to concerns about contamination or inconsistent composition. In many regions, there's a lack of clear regulations or certifications for upcycled materials, creating uncertainty for businesses.
Advances in material research and development have enabled the utilization of agricultural waste, food by-products, textile scraps, and more as viable packaging materials. Innovations in bio-binders, biopolymers, and fiber reinforcements have improved the functionality and aesthetics of upcycled packaging. Increasing launch of the new materials for packaging has created lucrative opportunity for the growth of the upcycled materials in packaging market in the near future.
For instance, according to the data published in the October 2024, since August 2023, a trio of businesses has been collaborating on a cooperative pilot project for the horizontal recycling of printed BOPP flexible packaging film. RM Tohcello Co., Ltd. (Head Office: Chiyoda, Tokyo; President & CEO: MATSUZAKA Shigeharu), TOPPAN Holdings Inc. group company TOPPAN Inc. (President & Representative Director: SAITO Masanori), and Mitsui Chemicals, Inc. (Tokyo: 4183; President & CEO: HASHIMOTO Osamu) have now created a recycled BOPP film that can be produced in large quantities.
The plastic segment held a dominant presence in the upcycled materials in packaging market in 2024. Plastic waste is one of the most common global pollutants, providing a large, consistent supply of material for upcycling. This makes it a readily available feedstock for recycled or upcycled packaging solutions. Common plastics like PET (polyethylene terephthalate), HDPE (high-density polyethylene), and LDPE are relatively easy to collect, clean, and reprocess. PET, in particular, is widely recycled into new bottles, containers, and flexible packaging materials.
Many countries and regions already have systems in place for collecting, sorting, and processing plastic waste. This enables efficient mechanical or chemical recycling to convert waste plastic into usable packaging materials. Many companies now use blends of virgin and recycled plastic to improve performance while reducing environmental impact. Innovations like rPET (recycled PET) and ocean-bound plastics have become popular in sustainable packaging.
The paper segment is expected to grow at the fastest rate in the market during the forecast period of 2024 to 2034. Paper is one of the easiest materials to recycle it can be reused 5 to 7 times before the fibers degrade. Unlike plastic or metal, recycled paper decomposes naturally, making it a preferred choice for eco-conscious packaging. The push to eliminate single-use plastic has led brands to adopt upcycled paper in the form of: corrugated boxes, wrapping paper, cartons and molded pulp trays, and paper bags and sleeves. Upcycling paper requires less energy and water than producing virgin paper pulp from trees. The carbon footprint of recycled or upcycled paper packaging is significantly lower than that of plastic or metal alternatives.
The boxes & cartons segment accounted for a considerable share of the upcycled materials in packaging market in 2024. Boxes and cartons are widely used in e-commerce, food & beverages, retail, electronics, and consumer goods. Their universal application makes them a natural fit for upcycled materials that are cost-effective and sustainable. Paper-based materials used in boxes and cartons (e.g., cardboard, kraft paper) are among the most recycled and upcyclable materials.
They can be reused multiple times without significant loss of structural integrity, especially when blended with fresh fibers. There is a well-developed infrastructure for collecting and processing waste cardboard and paperboard, making the raw material supply chain reliable and cost-efficient. Post-consumer corrugated board and industrial paper waste are readily available inputs for upcycled boxes.
The paper bags & sacks segment is anticipated to grow with the highest CAGR in the market during the studied years. Consumers are increasingly choosing eco-friendly, biodegradable, and recycled options. Paper bags made from upcycled materials (e.g., post-consumer recycled paper, agricultural waste) align perfectly with this trend. The appeal of "zero waste" and "circular economy" concepts is growing, particularly among younger and urban demographics. Many countries and regions are implementing strict bans or taxes on single-use plastics. This creates a forced shift towards alternatives like paper-based packaging.
The food & Beverage segment registered its dominance over the global upcycled materials in packaging market in 2024. The food & beverage industry is under pressure to reduce its environmental footprint, and upcycled materials offer a low-waste, resource-efficient alternative. Upcycling transforms waste or by-products (e.g., agricultural waste, used paper, or food industry side streams) into new packaging, aligning with zero-waste and circular economy principles. Modern consumer especially Millennials and Gen Z—prefer brands with visible sustainability efforts. Packaging made with upcycled materials helps companies appeal to eco-conscious buyers, who value transparency and environmental responsibility.
Governments worldwide are enforcing plastic bans and extended producer responsibility (EPR) frameworks. These rules encourage companies to use recycled or upcycled content in their packaging to avoid penalties and meet compliance standards. Recent technological advancements enable upcycled materials to meet food safety standards (e.g., for direct food contact).
Europe held the largest share of the upcycled materials in packaging market in 2024, owing to stringent laws of government and sustainability initiatives in the country. EU Green Deal and Circular Economy Action Plan push for sustainable production and consumption. Strict rules on waste management, recycling, and single-use plastics ban encourage companies to adopt upcycled materials. Extended Producer Responsibility (EPR) laws make companies accountable for the lifecycle of their packaging. European consumers are among the most eco-conscious globally.
Preference for sustainable, eco-friendly, and ethically produced goods is significantly influencing packaging choices. Demand drives businesses to innovate and adopt upcycled materials. Europe has one of the most developed recycling systems in the world. Efficient waste sorting, collection, and processing support a steady supply of recycled and upcyclable materials. Europe is home to numerous startups and companies specializing in sustainable packaging. Presence of certification bodies (e.g., Cradle to Cradle, FSC, EU Ecolabel) builds consumer trust in upcycled products. Retailers and brands (like Unilever, Nestlé, and Carrefour) are committing to sustainable packaging, accelerating adoption.
Asia Pacific region is anticipated to grow at the fastest rate in the upcycled materials in packaging market during the forecast period. Governments across Asia Pacific are implementing policies to reduce plastic waste and promote sustainable packaging. China introduced the "Plastic Ban 2021," prohibiting non-biodegradable plastics in major cities, encouraging businesses to adopt alternatives like molded pulp packaging. India amended its Plastic Waste Management Rules in 2021, prompting a shift towards eco-friendly packaging solutions.
Thailand plans to ban plastic waste imports entirely by 2025, signaling a strong commitment to reducing environmental impact. A Nielsen study revealed that over 70% of consumers in Australia and Japan are willing to pay a premium for products packaged in sustainable materials. This shift in consumer preferences is driving companies to invest in sustainable packaging solutions, including upcycled materials.
The e-commerce market in Asia Pacific is projected to grow by 20% annually, necessitating durable yet eco-friendly packaging materials. Fast-food chains in countries like India and Thailand are transitioning to molded pulp-based packaging to comply with local sustainability goals. Economic development in countries like China and India has led to increased consumption of packaged goods, further driving the need for eco-friendly packaging.
India Market Trends
India upcycled materials in packaging market is driven by the rising demand for sustainable packaging in the country. India’s commitment to 100% upcycled packaging is championed by major companies such as Amul and PepsiCo. Grassroots movements are contributing to the upcycled packaging landscape: In Dharavi, Mumbai, artisans repurpose discarded plastic waste into woven items like bags and mats, promoting environmental sustainability and economic empowerment.
North America region is seen to grow at a notable rate in the foreseeable future. Major corporations such as Unilever, Nestlé, Walmart, and PepsiCo have committed to using 100% reusable, recyclable, or compostable packaging by 2025–2030. Companies in North America like International Paper are investing in modernizing their packaging solutions to focus on sustainability and efficiency. A significant majority of consumers are willing to pay more for products with sustainable packaging.
For example, 82% of consumers across various age groups express this willingness, with 90% of Gen-Z consumers leading the trend. North America has invested in expanding its recycling infrastructure, with 2,800 facilities now equipped to handle eco-friendly materials, diverting 2.1 million tons of packaging waste from landfills. The region is witnessing a surge in the use of plant-based and biodegradable materials in packaging.
For instance, 1.5 million tons of plant-based packaging are imported or exported annually within North America. Companies are exploring edible packaging options, with 500,000 units sold in the market, indicating a promising direction for sustainable convenience. The eco-friendly packaging sector has created approximately 85,000 jobs in North America, highlighting the industry's role in economic growth.
United States: States like California have implemented stringent regulations targeting single-use plastics. For instance, California's law mandates a 25% reduction in single-use plastic by 2032, with at least 30% of plastic items being recyclable by 2028.
Canada: The Canadian government has introduced policies to reduce plastic waste, including bans on certain single-use plastics and requirements for recycled content in packaging.
By Material Type
By Packaging Form
By End-Use Industry
By Region
June 2025
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