PCR Packaging For Food And Beverages Applications Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

PCR Packaging For Food And Beverages Applications Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The PCR Packaging For Food And Beverages Applications Market size in terms of production volume is expected to grow from 4.53 Million tonnes in 2024 to 6.81 Million tonnes by 2029, at a CAGR of 8.52% during the forecast period (2024-2029).

PCR packaging embodies the principles of a circular economy, highlighting the reuse and recycling of materials that have been disposed of. Brands that choose recycled materials are not just making a choice; they are actively participating in this sustainable cycle, which resonates with consumers.

Key Highlights

• Many consumers prioritize transparency in sourcing and manufacturing processes. Companies leveraging PCR packaging often highlight their sustainability initiatives, a move that can bolster brand loyalty, especially among eco-conscious shoppers. According to the Cybersecurity and Infrastructure Security Agency, the volume of recycled plastic in China in 2023 was 19 million metric tons, and it has increased from 16 million metric tons in 2020.
• Moreover, as awareness of environmental challenges, such as plastic pollution and climate change, grows, consumers increasingly favor products made from sustainable materials. Using PCR packaging, companies can reduce the demand for new plastics, minimize waste, and conserve valuable resources.
• The increasing focus on sustainability and the need for effective waste management solutions drive the post-consumer recycled (PCR) packaging market. Pressure from consumers and regulatory bodies prompts brands to adopt PCR materials to reduce environmental impact and landfill waste.
• Advancements in plastic processing technologies, alongside supportive regulations, are driving growth in the post-consumer recycled (PCR) packaging market. Innovations like enhanced chemical recycling processes allow plastics to be broken down into their basic molecular forms, making it possible to recycle lower-quality plastics that were once difficult to repurpose.
• Concerns about contamination in food applications present a significant challenge to the PCR packaging market. Due to the potential for harmful substances to remain in recycled plastics, stringent safety measures are required, particularly for food-contact materials.

PCR Packaging For Food And Beverages Applications Market Trends

Baked Goods Food End User Segment is Expected to Witness Significant Growth in the Market

• Health and wellness baked goods consumers often prioritize environmentally friendly and sustainable products, including packaging. Companies will be encouraged to use PCR materials as this market expands, aligning with consumer expectations for eco-friendly packaging. PCR packaging offers an appealing choice for health-conscious brands aiming to reduce their environmental impact, especially as consumers look for products that support personal and environmental well-being.
• According to Agriculture and Agri-Food Canada, in 2022, global retail sales of health and wellness baked goods were approximately USD 44.9 billion. By 2026, they are expected to reach USD 56.2 billion.
• Regions such as Europe and North America are enacting stricter regulations on packaging waste and promoting recycled content requirements. As demand for health and wellness baked goods grows globally, brands will seek PCR packaging solutions to ensure compliance with these regulations and support circular economy initiatives.
• PCR packaging meets these requirements, making it a practical choice for brands navigating evolving regulations.
• Bread and bakery items are staple purchases with high-frequency turnover, generating substantial packaging waste. To address this, brands are shifting to sustainable packaging to align with consumer preferences for low-impact options. PCR packaging solutions, such as bread bags, wrap films, and pouches, provide recycled content options that can help reduce the environmental impact of everyday bakery packaging.
• According to Bizcommunity, a South African-based business-to-business news publisher, the global market for bread and bakery products amounted to an estimated volume of approximately 111.06 million tons in 2020 and is expected to reach 135 million tons by 2025.
• Using PCR packaging supports the circular economy by reintroducing recycled plastic into the production stream, reducing the need for virgin plastics. With a growing bakery sector, more brands are turning to PCR packaging to contribute to circular economy goals, supporting reducing, reusing, and recycling materials within the bakery industry.

Europe is Expected to Hold Significant Market Share

• The packaging industry represents a significant application segment in Germany's post-consumer recycled (PCR) resins market. PCR resins are increasingly adopted in packaging applications due to their sustainability benefits and reduced environmental impact. These materials are used in various packaging formats, including bottles, containers, and flexible packaging.
• The growing demand for environmentally friendly packaging solutions in food and beverages, driven by consumer preferences and regulatory requirements, is fueling the adoption of PCR resins. This segment aligns with the increasing focus on circular economy practices, which promote using recycled materials in packaging to reduce waste and conserve resources. Packaging companies in Germany are investing in technologies to improve the quality and functionality of PCR resins, thus expanding their application range and market presence.
• For instance, in February 2024, Source One Plastics, a joint venture between 23 Oaks Investments and LyondellBasell, launched a plastic waste sorting and recycling facility in Eicklingen, Germany. The facility processes hard-to-recycle post-consumer plastic waste, including mixed plastic packaging and flexible polyolefins, which would typically be incinerated. With a processing capacity of 70,000 metric tons, the facility can handle the equivalent plastic waste produced by 1.5 million German citizens annually.
• In recent years, France has implemented significant measures to address the environmental impact of packaging waste, driving changes in packaging materials, regulations, and consumer behavior.
• France, adhering to EU policies, has set targets for incorporating recycled content in packaging. By 2025, food and beverage packaging must include a minimum of 30% recycled plastic. This requirement drives the industry to adopt post-consumer recycled (PCR) plastics, particularly PET bottles, food containers, and trays. Brands increasingly utilize PCR plastics to decrease their dependence on virgin plastics and achieve sustainability targets.
• For instance, in February 2024, Faerch Group, a manufacturer of rigid food packaging and integrated recycling solutions, introduced its new Tumbler range for the food service market. This product line is engineered to incorporate at least 30% post-consumer recycled (PCR) material.
• Spain embraces the circular economy model as part of broader European Union initiatives. Post-consumer recycled (PCR) packaging is a crucial element in this transition. The Spanish food and beverages industry has shown responsiveness to the increasing demand for sustainable packaging, including incorporating recycled materials in food packaging. Key trends and adaptations in PCR packaging in Spain include:
• Spain's regulatory landscape is driving sustainable packaging adoption. The 2023 Plastic Tax incentivizes recycled material use, while the EU Green Deal and Circular Economy Action Plan set ambitious recycling targets, requiring 50% recycled content in plastic packaging by 2025.
• Additionally, Spain's National Packaging and Packaging Waste Management Plan (2020-2025) outlines goals to increase recycled content, reduce plastic waste, and enhance recycling systems. These initiatives collectively push Spanish companies towards increased use of post-consumer recycled (PCR) content and more sustainable packaging solutions.

PCR Packaging For Food And Beverages Applications Industry Overview

Various factors, including brand identity, competitive strategies, and transparency levels, influence the degree of competition in the market. ​This competitive force's key determinants include sustainable innovation advantages and more.

The global post-consumer recycled packaging market is fragmented, Some of the major players in the market are Berry Global, Amcor Group, ePac Holdings, LLC, Mondi plc, and Transcontinental Inc. among others.

These corporations consistently innovate and forge strategic partnerships to uphold their market share. In summary, the intensity of competitive rivalry is high and is projected to persist throughout the forecast period. ​

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