PUBLISHER: Grand View Research | PRODUCT CODE: 2151511
PUBLISHER: Grand View Research | PRODUCT CODE: 2151511
The global advanced recycling of plastic packaging market size was valued at USD 4.0 billion in 2025 and is projected to grow from USD 4.4 billion in 2026 to USD 8.3 billion by 2033, at a CAGR of 9.7% from 2026 to 2033. The market in Europe dominated with a revenue share of 34.4% in 2025. The market is primarily driven by the growing need to divert plastic packaging waste from landfills and incineration, increasing adoption of advanced recycling technologies, and rising demand for recycled feedstock that can be used in packaging applications.
The advanced recycling of plastic packaging market is driven by the growing volume of plastic packaging waste and the increasing need for advanced recycling solutions capable of processing waste streams that are difficult to recycle through conventional mechanical methods. As packaging manufacturers, consumer goods companies, and waste management operators increasingly focus on improving plastic recovery rates, there is growing demand for technologies such as pyrolysis, depolymerization, and dissolution/solvent-based recycling. Advanced chemical recycling enables the conversion of complex or contaminated plastic waste into recycled feedstocks that can be reintroduced into plastic production, supporting material recovery and circular plastic supply chains. The rising consumption of flexible packaging, multilayer structures, and other challenging-to-recycle formats is further accelerating demand for advanced recycling technologies.
An increasing focus on recycled-content targets, resource efficiency, and circular economy objectives across global packaging supply chains is expected to boost market growth in the coming years. Industries such as food & beverage, consumer goods, pharmaceuticals, and personal care are increasingly seeking recycled feedstocks that can meet stringent quality and performance requirements while supporting packaging sustainability goals. Post-consumer packaging waste accounted for the largest feedstock share in 2025, reflecting the growing emphasis on recovering value from discarded packaging materials. Regulatory initiatives related to plastic waste reduction, recycling targets, and recycled-content requirements are encouraging investments in advanced recycling infrastructure including chemical recycling infrastructure and improving the integration of recovered materials into packaging supply chains.
Technological advancements and the transition toward circular plastic production systems are also significantly contributing to market growth. A defining trend in the advanced recycling of plastic packaging industry is the increasing adoption of advanced recycling technologies for polyethylene (PE), polyethylene terephthalate (PET), polypropylene (PP), polystyrene (PS), and other plastic waste streams. Pyrolysis represented the largest technology segment in 2025, while dissolution/solvent-based recycling is projected to register the fastest growth as recyclers seek more selective approaches for recovering polymers and producing higher-quality recycled materials. At the same time, PET-based chemical recycling is gaining traction for its ability to convert waste into feedstocks for producing new PET materials.
For instance, investments in advanced recycling facilities and the development of commercial-scale depolymerization, pyrolysis, and solvent-based recycling processes are increasing the availability of recycled feedstocks for packaging applications. Such developments are expected to strengthen plastic waste recovery capabilities, improve the supply of recycled polymers, and support the integration of chemically recycled materials into packaging production. The growing adoption of these technologies across post-consumer packaging waste streams is therefore expected to create new opportunities for the advanced recycling of plastic packaging market over the forecast period.
Global Advanced Recycling of Plastic Packaging Market Report Segmentation
This report forecasts revenue growth at the regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2021 to 2033. For the purpose of this study, Grand View Research has segmented the global advanced recycling of plastic packaging market report on the basis of plastic type, feedstock, packaging type, technology, and region: