Packaging waste management market to reach USD 54.21-billion by 2034

The global packaging waste management industry is projected to grow at a compound annual growth rate (CAGR) of 3.5% as global consumption of packaged goods rises, creating a greater demand for packaging waste management services. 

The market growth demonstrates the market’s transition from traditional disposal methods to innovative and sustainable processes based on technological integration and circular economy concepts.

In 2024, the Asia Pacific led the market, accounting for 38% of the market. The growing urban population, government regulations, and investment in waste management infrastructure are driving expansion in the region. India, China, and Indonesia are increasingly promoting sustainable waste management through public-private partnerships and legislation changes.

Key drivers for the growth of packaging waste management include: plastic pollution crisis, government policies and regulations, tech-enabled waste management, and consumer demand.

The environmental impact of packaging waste is driving changes and customer preferences. Over 460-million metric tonnes of plastic are generated each year, with an estimated 20-million tonnes entering ecosystems, threatening biodiversity and marine life. Initiatives such as Canada’s Federal Plastics Registry and the European Union’s Packaging Waste Directive are bringing parties together around extended producer responsibility (EPR), recycled content standards, and monitoring systems.

In addition, artificial intelligence (AI) is transforming waste sorting, tracking, and resource recovery by increasing efficiency and reducing labour dependency. AI-powered devices with computer vision and machine learning capabilities improve sorting accuracy and collection logistics in smart cities.

The growing consumer demand for sustainable packaging is an opportunity for brands and governments to participate in circular practices. Consumer preference and demand are driving investment in recycling infrastructure, material innovation (such as biodegradable polymers and mono-materials), and waste tracing systems that promote transparency and compliance.

However, developing economies continue to face capital investment costs for collecting, sorting, and processing facilities. Furthermore, inadequate consumer understanding of correct waste segregation leads to contamination and ineffective recycling, providing significant challenges to long-term goals.

With a global plastic recycling rate of only 9%, plastic waste accounted for 40% of packaging waste in 2024, owing to the rise of single-use packaging.

Landfilling accounted for 45% of the market in 2024, owing to low-cost disposal alternatives, particularly in developing nations. However, the recycling and resource recovery segment is expected to expand from 2025 to 2034.

With a 47% market share in 2024, the residential sector is the major source of packaging waste. Increasing population, packaged food consumption, and the eCommerce boom have contributed to rising waste disposal quantities.

Companies are working to develop packaging that utilises recycled materials without compromising quality or shelf life. Using recycled glass, broken concrete, recovered wood, and other products to lessen its carbon footprint, the construction industry is becoming a significant growth sector.

AI is influencing the waste management chain by improving route planning for waste collection and recycling, the application of smart sensors and image recognition, and blockchain integration by guaranteeing traceability and transparency throughout the supply chain for recycled packaging content.

These technologies are boosting efficiency, minimising operational errors and enabling data-driven decisions, essential for EPR compliance and environmental, social, and governance (ESG) goals.

This article is based on a report by Towards Packaging.