In 2021, the PCR packaging market was estimated to exceed 5 million tonnes. It is expected to grow to 6.4 million tonnes by 2026, with a growth rate of 5.2%. Europe is the largest region, with approximately 53% of the market; this figure will grow to 55% by 2026, while Asia will hold around 28% of the share.
The new market report by Smithers, "The Future of PCR Packaging to 2026," shows how this market will evolve over the next five years. A compound annual growth rate (CAGR) of 5.9% between 2021 and 2026 will drive global demand to 6.37 million tonnes by 2026. Smithers' analysis tracks the historical, current, and future market consumption of PCR in seven types of polymers (PET, PE, PP, PS, PVC, EPS, others).
The most advanced mechanical recycling technology is for PET, making rPET the majority (68%) of the supply in 2021.
Europe is the largest regional market for PCR resins in packaging and will be the fastest growing during the five-year period of Smithers' study. This is driven by consumer expectations and legislation, including the Single-Use Plastics Directive, plastic waste fines, and support through the EU Circular Economy Action Plan. To meet the growing demand, it is still necessary to increase capacity and streamline the approval processes for PCR material in direct contact with food. This will slow market availability and cause greater upward pressure on prices between 2021 and 2026.
The same challenges will also restrict the availability of post-consumer recycled plastic in North America, which is positioned to follow the European trend. Food and beverage packaging will continue to dominate as these same brands work on new projects to meet corporate sustainability goals set for 2025. Personal care and medical packaging present alternative and competitive markets for high-quality PCR resin supply, although demand in e-commerce packaging continues to be below the market average.
To learn more about this topic, visit: Post-consumer Recycled (PCR) Plastics To See Rapid Growth - Reusable Packaging News (packagingrevolution.net)
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