Benelux Packaging Market: Growth Meets Circular Ambition

Netherland’s Packaging Market

In 2023, the Netherlands ranked as the world’s 18th-largest economy by GDP and the 8th-largest in total exports. It is the economic powerhouse of the Benelux region, ahead of Belgium and Luxembourg. The country’s main export destinations include Germany, Belgium, France, Italy, and the United Kingdom.

Building on its strong economic base, the Dutch packaging industry continues to post steady growth, fuelled by robust demand from the food sector, a firm commitment to sustainability, and a highly developed recycling infrastructure. In 2023, the Dutch packaging market was valued at 29.4 billion units, with expectations of a CAGR of less than 2% through to 2028. The market size of the packaging services segment in the Netherlands is valued at 134 million Euros in 2025, comprising 549 businesses. While the number of companies has grown modestly at a CAGR of 4.1% (2019–2024), the market size itself has declined at a rate of 15.4% over the same period.

Plastic packaging producers face mounting pressure from high domestic energy and raw material costs, eroding margins in the face of international competition. Even so, demand from food-related sectors remains solid.

The food industry dominates the country’s packaging demand, making it the sector’s single largest consumer. In 2023, rigid plastics were the most widely used packaging material, particularly in dairy & soy and bakery & cereals. Their popularity stems from their strength, light weight, affordability, and convenience. Flexible packaging also plays a significant role, especially for baked goods and cereals.

Other important end-use sectors include alcoholic and non-alcoholic beverages, cosmetics & toiletries, and a variety of industrial applications. Nevertheless, food remains the anchor of the Dutch packaging market. While rigid plastics hold a strong position, paper and cardboard lead in overall market share, with plastics as the second-largest category.

Sustainability is a defining feature of the Dutch packaging market. The country’s commitment to the circular economy is backed by a national strategy that targets 50% circularity by 2030 and full circularity by 2050. This is supported by public investments of around €300 million annually for climate-related decisions and actions, as well as regional initiatives in cities such as Groningen.

Recycling performance is among the highest in Europe. In 2023, 88% of all packaging placed on the market was recycled or reused — well above the Dutch legal target of 72% and the EU target of 65% set for 2025. Plastic packaging achieved an 82% recycling or reuse rate, while ferrous metals topped the chart at 99%. The national deposit-return scheme for PET bottles and cans also delivered impressive recovery rates of around 95%.

 

Luxembourg’s Packaging Sector

Luxembourg’s packaging sector is small but home to major international producers such as Klöckner Pentaplast (≈ €2 billion annual revenue in plastics) and Ardagh Group (≈ €7.7 billion in glass and metal packaging revenue as of 2016). The Packaging Services industry in Luxembourg is valued at just €2.7 million in 2025 and consists of a single company, with growth estimates varying from –5.9% to +0.6% CAGR for 2019–2024. The plastic packaging market rebounded sharply in 2024, rising 65% to 163 million Dollars after two years of decline. On the recycling side, Luxembourg collected 40,772 tonnes of packaging waste in 2023 1— about 61.6 kg per capita — and achieved a 76.96% total packaging recycling rate and a 50.29% plastic packaging recycling rate in 2022.

 

Belgium’s Packaging Economy

Belgium, the world’s 12th-largest exporter and 22nd-largest economy, is a highly industrialised nation that imports raw materials for processing and re-export. Around 75% of its exports and imports take place within the European single market. France is Belgium’s top export destination, followed by the Netherlands and Germany.

The country’s packaging activities sector is projected to generate approximately €611.65 million in revenue by 2025. The Packaging Services industry alone is valued at €1.1 billion in 2025, covering both cardboard and paper packaging as well as plastic packaging. It counts 169 businesses, a figure that has declined at a CAGR of 3.5% from 2019 to 2024. Despite this drop in company numbers, the sector is expected to grow over the next five years.

In Belgium, the production value of packaging services reached €552.2 million in 2023. The sector’s growth has been uneven—strong in the early to mid-2010s, followed by periods of decline and stability. Between 2018 and 2023, the five-year CAGR stood at 0.65%, with a modest upward trend from 2021 to 2023.

The total packaging placed on the Belgian market in 2022 fell by 1.3% year-on-year to over 1.9 million tonnes. Plastic packaging recycling reached 54% in 2022, placing Belgium second in the EU behind Slovakia — up from just 29% in the same year. Paper and cardboard account for 39% of packaging waste by weight, followed by glass at 21% and plastic at 19%. Recycling rates are among Europe’s highest: glass at 98%, metals at 96%, paper and cardboard at 86%, and wood at 67%.

A major boost to Belgium’s circularity came with the opening of a state-of-the-art plastics recycling plant in Lommel by Morssinkhof-Rymoplast Group and Fost Plus, backed by Ingka Investments (IKEA’s investment arm). Designed to handle household waste from 80% of Belgian homes — around four million households — the facility processes milk bottles, butter tubs and shampoo containers collected via the national PMD system, producing high-quality recyclate for personal care and other packaging applications.

Belgium’s domestic household plastic packaging recycling rate has surged from about 9% in 2018 to roughly 69% today, thanks to increased local capacity. With the Lommel plant and other projects coming online, the country’s domestic processing capacity is expected to climb from 49% in 2024 to 75% in the near future.

 

Author: Alexander Stark