HomeIndustry InsightsGlobal Recycled PET Market Set to Hit USD 26.78 Billion by 2034 as Sustainability Drives Demand

Global Recycled PET Market Set to Hit USD 26.78 Billion by 2034 as Sustainability Drives Demand

2025-08-12

The global recycled polyethylene terephthalate (rPET) market is on track to grow from USD 12.76 billion in 2025 to approximately USD 26.78 billion by 2034, registering a compound annual growth rate (CAGR) of 8.53%, according to a new study by Towards Packaging, a sister firm of Precedence Research.

This strong growth is fueled by rising environmental awareness, stricter government regulations on plastic recycling, and surging demand for sustainable packaging across industries such as food & beverage, personal care, and textiles. rPET’s reduced carbon footprint and cost-effectiveness are making it the preferred alternative to virgin PET, particularly as brands ramp up their corporate sustainability commitments.

What is rPET?

Recycled PET is produced by processing used PET products—such as beverage bottles and food containers—through mechanical or chemical recycling methods, converting them into high-quality raw material for new packaging. It retains the key benefits of virgin PET—strength, clarity, and moisture resistance—while significantly lowering environmental impact and supporting circular economy goals.

Key Market Trends

Regulatory push: The EU, India, and other regions are enforcing stricter recycled-content mandates and deposit return schemes.
Cost challenges: Low oil prices and subsidies for virgin PET continue to threaten rPET’s price competitiveness.
Quality issues: Contaminated feedstock and inconsistent color quality remain barriers to food-grade applications and consumer trust.
Technological advances: Enzymatic recycling (e.g., Carbios) and AI-powered sorting are expanding recycling capabilities.
Sector competition: Demand from textile makers (e.g., Repreve) is drawing feedstock away from bottle-to-bottle recycling.
Global investment: Emerging markets, particularly in Asia-Pacific, India, and Africa, are scaling collection and recycling infrastructure.
Supply chain transparency: Blockchain and QR-based systems are increasingly used to verify recycled content and enhance consumer confidence.

Opportunities and Challenges

While corporate commitments from global brands like Coca-Cola, PepsiCo, Nestlé, Unilever, and Evian are driving steady demand, the market faces constraints in feedstock availability, mechanical performance, and infrastructure readiness—especially in developing economies. Without improved collection systems and policy alignment, the industry’s full potential will be harder to achieve.

Source: Precedence Research via Towards Packaging, August 7, 2025.