PCR packaging market fueled by regulations and innovations
The European Council officially adopted the Packaging and Packaging Waste Regulation (PPWR) on December 16, 2024. The regulation’s primary goal is to significantly reduce packaging waste by establishing binding re-use targets, limiting specific types of single-use packaging, and mandating operators to minimize packaging usage.
Key aspects of the PPWR include targets for minimum recycled content of up to 65% post-consumer recycled (PCR) materials in single-use plastic bottles by 2040.
Specifically, new binding re-use targets have been established for 2030, along with indicative targets for 2040. All plastic components of packaging introduced to the market must contain a minimum percentage of recycled content sourced from post-consumer plastic waste.

The PCR packaging market is expected to grow. (Source: Accredo)
These minimum percentages vary by packaging type. For example, there are binding targets of 40% for transport and sales packaging and 10% for grouped packaging.
The PPWR is anticipated to boost sustainable packaging development, especially by promoting the use of PCR plastic materials, leading to a glowing future for the PCR plastics market.
Surge in demand for PCR packaging
PCR plastic is an eco-friendly packaging option made from recycled plastics, utilized across various formats such as bottles, containers, and flexible packaging.
According to statistics from Mordor Intelligence, the market for PCR packaging in food and beverage applications is projected to expand significantly, growing from 4.92 million tons in 2025 to 7.40 million tons by 2030, with a compound annual growth rate (CAGR) of 8.52% during the forecast period from 2025 to 2030.
Several factors are driving the growth of the PCR packaging market. Firstly, increasing consumer awareness of environmental issues, such as plastic pollution and climate change, has led many to favor products made from sustainable materials.
Additionally, mounting pressure from consumers and regulatory bodies has encouraged brands to adopt PCR plastic, aiming to lessen their environmental impact and reduce landfill waste.
From a supply perspective, utilizing PCR packaging enables companies to meet consumer demands while also decreasing reliance on virgin plastic, minimizing waste, and conserving valuable resources.
Moreover, advancements in plastic processing technology, including improved chemical recycling processes, allow plastics to be broken down to their basic molecular forms. This innovation makes it possible to recycle lower-quality plastics that were previously difficult to be repurposed.
A major challenge facing the PCR packaging market, however, is the concern over contamination in food applications. Regions like Europe and North America are implementing stricter regulations on packaging waste and promoting requirements for recycled content.
From a global perspective, Europe is projected to hold a significant share of the PCR packaging market, with Germany leading the charge in growth.
In Germany's PCR plastics market, packaging constitutes a key application segment. Packaging companies are investing in technologies to enhance the quality and functionality of PCR plastics, thereby broadening their application range and market presence.
Versatile applications of PCR plastic
Thanks to technological innovations, PCR plastic can be utilized in food packaging, cosmetics packaging, and films, providing a second life to discarded plastics while enhancing circularity and environmental performance.
To assist brands in achieving their recycled content goals, food-grade PCR content is incorporated into flexible plastic packaging, ensuring it contains at least 30% PCR. Developed by Berry Global, these flexible film products are suitable for a wide range of food applications, benefiting both the bakery and frozen food markets.
To tackle the challenge of recycling household plastic waste for demanding applications like collation shrink films, Dow has introduced two new grades of REVOLOOP Recycled Plastics Resins—one containing 100% PCR content and the other featuring up to 85% PCR content sourced from household waste.
Both grades are approved for non-food contact packaging applications. This innovative collation shrink film is a collaboration between Dow and RKW Group, a leading European manufacturer of shrink films, combining Dow’s material science expertise with RKW’s extrusion and printing capabilities.
Likewise, ExxonMobil has launched Enable 1617, a performance polyethylene (PE) grade specifically designed for thin-gauge hand wrap applications. This material contains over 30% PCR content while ensuring high processability and film quality. It is designed to deliver excellent tenacity and consistent extrusion, as well as to incorporate PCR content.