Recycled Polymers Surge in Global Packaging Demand in 2025

By Chitranshi Jaiswal , 09 September, 2025

The global packaging industry is projected to have a sharp increase in the consumption of recycled polymers in relation to sustainability goals by 2025. This change is likely caused by regulations, business commitments to sustainability, and advances in technology.

The European Union came up with the Packaging and Packaging Waste Regulation (PPWR) which becomes effective February 11, 2025. It has minimum requirements for the amount of recycled materials used in packaging and aims to achieve wholly circular economy by 2030.

California’s SB 54 law also needs a 25% reduction in single-use plastics and a 65% recycling rate for single-use materials by 2032.

Inodrly these laws, firms are adopting these laws and adding new facilities to increase shredders for recycling materials. Eni’s chemical subsidiary Versalis also opened a new plant in Porto Marghera for producing plastics using mechanically recycled raw materials. Furthermore, Us and Canadian recyclers increased their capacity by 2 billion pounds to fulfill demand.

Competition still exists despite all of these efforts. The available supply of recycled plastic on a global scale is not likely to reach the targeted supply of 90 million tons by 2030 which provides prospects of a deficit gap by 2040.

Additionally, the market also struggles in severing the post-consumer recycled (PCR) costing from virgin donated resin pricing which is a major concern. Therefore, slashed pricing subsides like set limits on legislative frameworks such minimumon recycled materials needed in components and content taxes encouraged.

The worldwide sustainable packaging market is expected to see steady growth in 2025 owing to regulatory requirements, consumer preferences, and business sustainability objectives. The market is shifting towards compostable, biodegradable, and recyclable materials, with paper and board leading at a 40% market share, followed by bio-based plastics at a 10% CAGR.

Sustainability within the packaging industry comes with a unique set of hurdles. There is an emerging need for investment, innovation, and cooperation throughout the value chain in response to the demand surge for recycled polymers.