
Current market dynamicsand policy levers Managementsummary Packaging waste in the Gulf Cooperation Council (GCC) is growing rapidly, witharound 9 million tonnes generated annually and only 10% recycled. Globalregulations such as the EU's Packaging and Packaging Waste Regulation (PPWR) andthe United Arab Emirates' (UAE) Extended Producer Responsibility (EPR) frameworkmake circular packaging a necessity. Circularity can deliver environmental benefits,reduce landfill dependency and create economic value, but progress is slow. Innovation is advancing upstream: FMCG brands and manufacturers are shifting tomono-materials, paper-based solutions and lightweight PET, while R&D in bio-polymersand coatings is accelerating. Still, adoption is facing hurdles: lack of harmonizedstandards, high costs of sustainable materials and uncertainty around emerging EPRframeworks. Virgin plastics remain cheaper than recycled alternatives, and feedstockscarcity – especially for food-grade streams – is limiting progress. Downstream, consumer willingness is evident, but enabling systems lag. Local wasteoperations still struggle to separate materials effectively, causing contamination. Toconvert intent into action, awareness and education will be crucial, but they must bereinforced with sorting infrastructure and incentives that combine convenience withtangible rewards for users. To move beyond pilots, five priorities stand out: harmonize design and recyclingstandards; create economic pull through EPR and recycled-content mandates;engage consumers with meaningful incentives; scale integrated waste collectionand treatment systems; and monitor progress through transparent reporting. Withcoordinated action, the GCC can turn ambition into impact and secure its place in theglobal circular economy. Contents Fastfacts The regiongeneratesaround 9million tonnesof packagingwaste annually 10% of packagingwaste in theGCC is currentlyrecycled Sustainablematerials aresignificantlymore expensivethan virginplastics, makingadoptioncommerciallychallenging Designing for circularity: Standards, materialsand policy Packaging waste in the GCC is rising fast. Saudi Arabia, Qatar and the UAE generatesaround 9 million tonnes of packaging waste annually,1of which 10% is recycled. Rapidconsumption growth and gaps across the waste management value chain underscore theurgency for a holistic and systemic change. For governments and companies operating in the region, the question is no longerwhether to embrace circular packaging, but how fast, and at what cost. Globalsustainability regulations are tightening: the EU's PPWR, effective in 2025, mandatesrecyclability and minimum recycled content, while EPR schemes are spreading worldwide,including in the UAE, where the first EPR pilot launched in 2025 and a full framework isplanned for 2026. Circularit yof fers a way forward.By redesigning packaging ,scaling wasteinfrastructure, and aligning policy with industry incentives, the region can turn a loomingliability into a competitive advantage. The benefits are tangible: lower emissions, reducedlandfill dependency and new revenue streams from recycled materials. But withoutdecisive and coordinated policy action, the GCC will not move beyond pilots and pledges. Upstream progress on circular packaging is real, with global FMCG brands leading thecharge and cascading innovation across the region. Nestlé reported that over 86% of itspackaging is now designed for recycling, with Gulf operations held to the same standard.2Similarly, Mars has reportedly redesigned more than 12,000 packaging components andshifted thousands of stock-keeping units (SKUs) toward mono-materials and paper-basedsolutions and is piloting alternatives for flexible packaging with improved recyclability.3 This move coincides with major innovations by packaging manufacturers. SIG, a leadingglobal supplier, has introduced an award-winning product that eliminated the aluminumlayer while maintaining shelf life and compatibility with existing filling lines. Made from over80% responsibly sourced paperboard and protected by a high-barrier polymer layer, thisbreakthrough improves recyclability through a simpler structure without requiring costlyequipment changes. SIG is also targeting a 90% paper share for some packaging items by2030 and developing mono-material polyethylene structures with de-inking anddelamination primers to boost recycling yields.4 Regional players are stepping up too. Hotpack, a UAE-headquartered global packagingcompany with operations in over 100 countries, claims that 97% of its 4,000+ SKUs arerecyclable or environmentally friendly. The company is investing in lightweight, fullyrecyclable PET formats (such as its proprietary H-PET) and in infinitely recyclable products,while retrofitting existing filling lines to ease adoption for brand owners.5 Across the value chain, R&D in recyclable and biodegradable materials is accelerating.FMCG brands like Mars and Nestlé are testing