Advanced Recycled Materials (ARM) in Packaging Market Trends 2026-35

As reported by Towards Packaging experts, the global advanced recycled materials (ARM) in packaging market is anticipated to rise from USD 4.86 billion in 2026 to approximately USD 7.60 billion by 2035, with a CAGR of 5.1% from 2026 to 2035.

Ottawa, Feb. 05, 2026 (GLOBE NEWSWIRE) -- The global advanced recycled materials (ARM) in packaging market was assessed at USD 4.62 billion in 2025, with projections indicating an increase to USD 7.60 billion by 2035, based on insights from Towards Packaging, a sister firm of Precedence Research. The growth of the market is driven by the stringent environmental regulations, increased demand for the rigid packaging sector, and corporate sustainability goals.

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What is Meant by Advanced Recycled Materials (ARM) in Packaging?

Advanced recycled materials (ARM) in packaging refer to materials created through advanced (chemical) recycling technologies that break down mixed or contaminated plastic waste into their original molecules to produce high-quality, food-grade, or pharmaceutical-grade packaging. Unlike traditional mechanical recycling, ARM offers virgin-quality plastic, reduces reliance on fossil fuels, and helps industries meet sustainability goals.

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Private Industry Investments for Advanced Recycled Materials (ARM) in Packaging:

Amcor has invested in the Australian advanced recycling technology company Licella to secure access to post-consumer recycled content for its packaging products in the region.
Mondelēz International partnered with Amcor and Licella to support the construction of one of Australia's first advanced recycling facilities, which will help reduce the need for virgin plastic in its soft plastic packaging.
Dow acquired a capacity from Circulus, a low-density polyethylene recycler, to convert plastic waste into post-consumer resins for various applications, including packaging.
Tetra Pak has invested €60 million in a new pilot plant in Sweden to develop paper-based barrier technology that replaces traditional aluminum foil layers in its cartons.
SK Geo Centric has made significant investments in several advanced recycling companies, including Loop Industries, Brightmark, and PureCycle Technologies, as part of its goal to become a major producer of "urban oil" from plastic waste.

What are the Latest Key Trends in the Advanced Recycled Materials (ARM) in Packaging Market?

High-Quality PCR Adoption: The use of Post-Consumer Recycled (PCR) plastics such as rPET, rHDPE, and rLDPE is accelerating, offering virgin-grade performance for food and consumer goods.
Food-Grade Circularity: Advanced technologies are crucial for meeting strict safety standards for recycled materials in food and specialized nutrition packaging.
AI and Automation in Sorting: Innovations in AI, robotics, and machine learning are revolutionizing recycling by improving sorting and processing precision, enabling the recovery of higher-quality materials.

What is the Potential Growth Rate of the Advanced Recycled Materials (ARM) in Packaging Market?

Advanced Recycled Materials (ARM) in packaging industry are primarily driven by stringent environmental regulations, surging consumer demand for sustainable products, and the need for a circular economy to reduce plastic waste. Advanced, chemical, and AI-based sorting technologies enable high-quality recycling, lowering production costs and carbon footprints.

Regional Analysis:

Who is the leader in the Advanced Recycled Materials (ARM) in Packaging Market?

Europe held the largest share in the market in 2025, driven by stringent environmental regulations and aggressive circular economy policies. The region benefits from well-established recycling systems, high collection rates, and strong policy support for minimum recycled content in packaging. Innovation in mechanical and chemical recycling technologies enables the use of recycled materials in high-performance and food-contact applications, strengthening market growth across multiple packaging segments.

Germany Advanced Recycled Materials (ARM) in Packaging Market Growth Trends

Germany plays a pivotal role in Europe’s market due to its robust recycling infrastructure and strong regulatory framework. High recovery rates, combined with continuous investments in advanced sorting and recycling technologies, support the production of high-quality recycled polymers and paper. German packaging manufacturers actively adopt recycled materials in consumer goods, industrial packaging, and e-commerce applications, reinforcing the country’s leadership in sustainable packaging solutions.

How is the opportunity in the Rise of the Asia Pacific in Advanced Recycled Materials (ARM) in the Packaging Industry?

Asia-Pacific is the fastest-growing region for advanced recycled materials in packaging, supported by rising environmental awareness, rapid urbanization, and expanding packaged goods consumption. Governments across the region are introducing regulations to reduce plastic waste and promote recycled content usage. Increasing investments in recycling capacity, particularly in chemical recycling and advanced material processing, support the transition toward higher-quality recycled packaging materials.

China Advanced Recycled Materials (ARM) in Packaging Market Growth Trends

China dominates the Asia-Pacific market as regulatory reforms and national sustainability goals drive increased use of recycled materials in packaging. The country’s large packaging manufacturing base and growing focus on waste management modernization encourage the adoption of advanced recycled polymers. Investments in domestic recycling technologies and collaborations with global packaging firms enhance the quality and scalability of recycled materials used across food, beverage, and consumer goods packaging.

More Insights of Towards Packaging:

Segment Outlook

By Material / ARM Type

Which Material/ ARM Type Segment Dominated the Advanced Recycled Materials (ARM) in Packaging Market?

The recycled paper & cardboard segment dominated the market with the highest share in 2025, driven by high recyclability rates, established collection infrastructure, and strong regulatory support. These materials are widely used due to their biodegradability, cost-effectiveness, and compatibility with circular economy goals.

Advances in fiber recovery, de-inking technologies, and strength-enhancing additives have improved performance characteristics, enabling recycled paper and cardboard to meet durability and hygiene requirements across food, retail, and industrial packaging applications.

The recycled plastics segment is projected to grow at the fastest rate in the forecast period in the market, as brands seek to reduce virgin plastic consumption and carbon footprints. Technological advancements such as chemical recycling, improved sorting, and food-grade recycling processes have expanded the usability of recycled plastics in high-performance packaging.

These materials offer flexibility, lightweight properties, and barrier performance, making them suitable for both rigid and flexible packaging formats, particularly in food, beverage, and e-commerce sectors with sustainability commitments.

By Packaging Type

How did the Corrugated and Paperboard Packaging Segment dominate the Advanced Recycled Materials (ARM) in Packaging Market?

The corrugated & paperboard packaging segment dominated the market with the highest share in 2025, due to strong demand from e-commerce, logistics, and consumer goods industries. Recycled fiber-based corrugated packaging offers high strength-to-weight ratios, printability, and cost efficiency. Innovations in recycled linerboard quality and structural design have enhanced load-bearing performance, supporting its widespread adoption for secondary and tertiary packaging while aligning with corporate sustainability and recyclability targets.

The flexible packaging segment is projected to grow at the fastest rate in the forecast period in the market, driven by lightweighting benefits and reduced material usage. The integration of recycled plastics into films, pouches, and wraps has been supported by improved material purity and barrier-enhancing technologies. Although recyclability challenges remain, mono-material designs and chemically recycled content are improving performance and regulatory acceptance, especially in food, personal care, and retail packaging applications.

By End-Use Industry

Which End User Industry Segment Dominated the Advanced Recycled Materials (ARM) in Packaging Market?

The food & beverage segment dominated the market with the highest share in 2025, driven by sustainability commitments and regulatory pressure to incorporate recycled content. Adoption is supported by advancements in food-contact-safe recycled materials, particularly in paperboard and recycled plastics. Brands increasingly use recycled-content packaging for dry foods, beverages, and secondary packaging, balancing safety, shelf life, and environmental performance while improving brand perception among environmentally conscious consumers.

The e-commerce & retail segment is projected to grow at the fastest rate in the forecast period in the market, to address packaging waste concerns and improve sustainability credentials. High shipment volumes and demand for protective packaging make recycled corrugated boxes, paper-based fillers, and recycled plastic mailers particularly attractive. Retailers and online platforms prioritize recycled materials that offer durability, cost efficiency, and recyclability, driving consistent demand growth across primary, secondary, and protective packaging formats.

Recent Breakthroughs in Advanced Recycled Materials (ARM) in Packaging Industry

In December 2025, Borealis and Borouge launched Recleo™, a global brand for mechanically recycled polyolefins, designed to provide cost-effective, sustainable materials for industries such as consumer packaging and mobility. This initiative aims to enhance the availability of recycled solutions for high-volume applications.

In May 2025, GreenBlue's How2Recycle program launched the Packaging Recyclability Advancement Task Force to address technical and infrastructure barriers for packaging formats currently categorized as "Check Locally" or "Not Yet Recyclable". The goal is to move these packaging types into higher recyclability tiers.

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Top Companies in the Advanced Recycled Materials (ARM) in Packaging Market & Their Offerings:

Amcor plc: Uses certified circular polyethylene from advanced recycling for high-performance food and healthcare packaging.
Mondi Group: Develops mono-material pouches and high-barrier paper bags that integrate high-recycled-content polymers.
Smurfit Kappa Group: Operates a closed-loop system to produce corrugated solutions using over 90% recovered material.
DS Smith plc: Produces 100% recyclable paperboard by managing millions of tonnes of waste through a circular supply chain.
International Paper Company: Manufactures high-strength containerboard and corrugated products using extensive fibre recovery systems.
Tetra Pak International SA: Incorporates certified-circular polymers into aseptic cartons to convert used packaging back into food-grade plastic.
Sealed Air Corporation: Integrates advanced recycled resins into flexible films for food-grade, contact-sensitive applications.
Berry Global Inc.: Partners with chemical recyclers to offer certified-circular resins for food and beauty containers.
WestRock Company: Provides recycled paperboard and fibre-based alternatives to replace traditional plastic packaging formats.
Kruger Inc.: Produces 100% recycled linerboard and containerboard derived entirely from recovered paper fibres.
Packaging Corporation of America: Utilises a nationwide recovery network to produce high-recycled-content corrugated packaging.
Ranpak Holdings Corp: Specialises in 100% paper-based, biodegradable protective packaging designed to replace plastic void-fill.

Segment Covered in the Report

By Material / ARM Type

Recycled Paper & Cardboard
- Post-consumer recycled paper
- Post-industrial recycled paper
- Corrugated cardboard
- Cardboard packaging
Recycled Plastics (PCR plastics such as rPET, rHDPE, rLDPE)
- rPET (recycled Polyethylene Terephthalate)
- rHDPE (recycled High-Density Polyethylene)
- rLDPE (recycled Low-Density Polyethylene)
- rPP (recycled Polypropylene)
Recycled Metals (Aluminum, Steel)
- Recycled aluminum
- Recycled steel
- Aluminum foil packaging
- Steel packaging
Advanced Biopolymers & Bio-based Recycled Materials
- PLA (Polylactic Acid)
- PHA (Polyhydroxyalkanoates)
Other bio-based plastics (e.g., PBS, PBAT)
- Biodegradable films
- Specialty Recycled Composites
- Recycled composite packaging materials
- Composite materials with bio-based components
- Recycled multi-material composites

By Packaging Type

Corrugated & Paperboard Packaging
- Single-wall corrugated boxes
- Double-wall corrugated boxes
- Paperboard cartons
- Paperboard trays
Flexible Packaging (Films, Pouches, Wraps)
- Plastic film packaging (biodegradable and recyclable)
- Stand-up pouches
- Wraps (plastic and paper wraps)
- Retort pouches
Rigid Packaging (Bottles, Trays, Containers)
- Recycled plastic bottles
- Rigid containers (plastic, glass)
- Plastic trays and containers
- Aluminum containers
Protective Packaging
- Foam cushioning (recycled)
- Bubble wraps (recycled)
- Air cushions (recycled materials)
- Paper-based protective packaging
Other Packaging Formats
- Recycled flexible bags
- Recycled multi-compartment packaging
- Recycled shrink wraps

By End-Use Industry

Food & Beverage
E-commerce & Retail
Personal Care & Cosmetics
Homecare & Cleaning Products
Pharmaceuticals & Healthcare
Electronics & Electricals
Industrial Goods

By Region

North America:

U.S. 
Canada 
Mexico 
Rest of North America

South America:

Brazil 
Argentina 
Rest of South America

Europe:

Western Europe  
Germany 
Italy 
France 
Netherlands 
Spain 
Portugal 
Belgium 
Ireland 
UK 
Iceland 
Switzerland 
Poland 
Rest of Western Europe

Eastern Europe

Austria 
Russia & Belarus 
Türkiye 
Albania 
Rest of Eastern Europe

Asia Pacific:

China 
Taiwan 
India 
Japan 
Australia and New Zealand,  
ASEAN Countries (Singapore, Malaysia) 
South Korea 
Rest of APAC

MEA:

GCC Countries 
Saudi Arabia 
United Arab Emirates (UAE) 
Qatar 
Kuwait 
Oman 
Bahrain 
South Africa 
Egypt 
Rest of MEA

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About Us

Towards Packaging is a global consulting and market intelligence firm specializing in strategic research across key packaging segments including sustainable, flexible, smart, biodegradable, and recycled packaging. We empower businesses with actionable insights, trend analysis, and data-driven strategies. Our experienced consultants use advanced research methodologies to help companies of all sizes navigate market shifts, identify growth opportunities, and stay competitive in the global packaging industry.

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