Upcycled packaging market sees rapid growth

The market for upcycled packaging materials is growing rapidly, driven by environmental concerns, consumer demand, and brand commitments to sustainability. New forecasts suggest the industry could generate hundreds of millions more in revenue between 2025 and 2034, with Europe currently leading in adoption and Asia Pacific expected to expand significantly.

Upcycled packaging is made from waste materials that would otherwise be discarded. Unlike traditional recycling, which often results in material degradation, upcycling retains or enhances the original value of the materials.

Common sources include post-consumer waste, agricultural byproducts, textile scraps, and food waste. In 2024, plastics and paper-based products such as boxes and cartons were the most widely used materials. Paper bags and sacks are projected to gain popularity in the coming years.

The food and beverage sector is the largest user of upcycled packaging, with agriculture emerging as a key area for growth. Companies are turning to upcycled materials to meet environmental targets and appeal to consumers who prefer greener options. Labels indicating “upcycled” or “zero waste” packaging have become effective selling points, particularly among Millennial and Gen Z buyers.

Artificial intelligence is playing a role in scaling the industry. AI tools assist in selecting suitable waste materials, optimising packaging designs, measuring carbon footprints, and improving recycling systems. This technology supports efforts to create stronger and more sustainable packaging.

Online shopping continues to drive demand. E-commerce platforms like Amazon and Flipkart are promoting sustainable packaging practices and incentivising eco-conscious sellers.

Challenges remain, including limited material supply, strict regulations for food-safe packaging, and the absence of unified global standards. Despite this, advances in material science and regulatory support, especially in Europe, suggest a strong future for the sector.

Upcycled packaging represents a shift towards circular production models and is becoming central to global sustainability strategies.

This article is based on a report by Towards Packaging.