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Rethinking Recycling Infrastructure in Asia for Packaging Circularity

By Avery Dennison Sustainability Team, Asia Pacific

Published on 6 May 2025

Asia produces nearly 23% of the world's municipal solid waste, yet its recycling rates remain significantly lower than in regions like Europe and North America. For businesses and governments across the region, this discrepancy poses significant environmental, social, and economic challenges. With rising pressure from both consumers and regulatory agencies, addressing these gaps in recycling infrastructure must take center stage. The potential benefits are enormous—not only for reducing landfill waste but also for paving the way towards packaging circularity and reducing dependency on virgin materials.

This article explores the current state of recycling in Asia, the hurdles preventing progress, and solutions for building a stronger, more efficient recycling infrastructure to enable sustainable waste management practices.

The Recycling Challenge in Asia

Asia's countries face widely varying recycling rates and waste management systems. While some nations like Japan and South Korea have robust recycling infrastructures, others, such as India, Indonesia, and the Philippines, lag behind due to inefficiencies in waste collection, processing, and sorting. Unsurprisingly, this leads to environmental issues such as extensive marine plastic pollution, with Asia contributing approximately 81% of global ocean plastic waste.

Concerning packaging waste specifically, regional recycling rates remain low:

PET plastics are collected at varying rates across Asian nations, with rates as low as 14-15% in some countries.
Mixed plastics and flexible packaging, which are significantly harder to recycle, are often not part of municipal collection systems, leaving them to pile up in landfills or leak into natural ecosystems.

One of the core challenges is the lack of investment in modern recycling technology and infrastructure, leading to contamination issues, insufficient sorting capabilities, and a dependence on low-quality recycled materials. Without significant reforms, achieving packaging circularity appears increasingly out of reach.

Why Recycling Infrastructure Matters for Packaging Circularity

Reducing Reliance on Virgin Materials

According to projections, a 1% increase in recycling rates can reduce approximately 2,000 metric tons of plastic waste annually for companies producing high volumes. Recycling not only limits landfill waste but also decreases dependence on resource-intensive virgin materials. For example:

Recycled PET (rPET) generates 70% fewer emissions compared to virgin PET.
High-Density Polyethylene (HDPE) products made from recycled materials can cut emissions by up to 1.9 kg CO2 per kg produced.

Meeting Regulatory Requirements

Government regulations are rapidly tightening around the world, and Asia is no exception. Countries like India and Malaysia are introducing Extended Producer Responsibility (EPR) schemes, mandating companies to take greater ownership of their waste streams. Similarly, initiatives like enhanced deposit return schemes (DRS) are being adopted to improve collection rates.

For businesses, this means ensuring all packaging materials—including labels and adhesives—comply with Design for Recycling (DfR) protocols, enabling the creation of fully recyclable packaging that works seamlessly within modern systems.

Building Consumer Trust

A growing number of consumers in Asia expect brands to prioritize sustainability. 61% of consumers globally say they are willing to pay more for eco-friendly products, with packaging being one of the most visible elements of a brand's environmental commitment. By investing in better recycling systems, companies can also align with these growing consumer expectations and enhance brand loyalty.

Building Solutions for a Stronger Recycling Infrastructure

Collaborative Partnerships Across the Value Chain

One of the most effective strategies is collaboration between product manufacturers, governments, recyclers, and other stakeholders. Successful examples include:

PET Value Philippines, established by Coca-Cola and Indorama Ventures, which provides more than 800 PET bottle collection points and can process over 2 billion PET bottles annually.
Industry partnerships like Avery Dennison's innovations in pressure-sensitive labels, which enable clean recycling of PET and HDPE plastics by ensuring adhesives do not interfere with recycling processes.

Through collective efforts like these, stakeholders can create circular systems where packaging materials are treated as assets rather than waste.

Invest in Advanced Sorting and Processing Technologies

Recycling systems require infrastructure that can process different types of materials, minimize contamination, and maximize yields. Advanced technologies, such as artificial intelligence for sorting and sink-float separation techniques in PET and HDPE recycling, can significantly improve efficiency. Materials like clean-release adhesives, which detach during washing without leaving residue, also make recycling processes smoother.

Mandatory Deposit Return Systems (DRS)

Asia must adopt more robust deposit schemes to ensure higher collection rates. Countries like Germany boast a 97% PET collection rate thanks to efficient DRS. Asia can replicate these initiatives to ensure that packaging waste is consistently returned and prepared for further processing.

Strengthening Consumer Awareness Campaigns

Educating citizens about proper waste disposal practices remains critical in Asia, where recycling confusion often leads to contamination. Public-private partnerships can fund awareness initiatives explaining:

Clear instructions on sorting common items like PET and HDPE bottles.
The importance of removing non-recyclable labels or adhesives.

Explore Innovative Labeling Technologies

An often-overlooked barrier in packaging circularity is the role of labels and adhesives. Recent advancements in pressure-sensitive labels (PSLs) offer promising solutions:

Adhesive labels that prevent contamination during PET/HDPE recycling, improving yields and material purity.
Digitally enabled labels (like RFID and QR codes) help track materials across their lifecycle, ensuring traceability and proper handling.

By designing recycling-compatible packaging from the start, brands can streamline reprocessing while achieving sustainability goals.

Adopt Policies That Support EPR and DfR Standards

Governments must support businesses by introducing enforceable standards for packaging design. Implementing EPR frameworks incentivizes producers to use recyclable or reusable materials, while specific DfR guidelines ensure new materials align with existing recycling systems.

The Path Forward

Asia’s recycling infrastructure has immense room for improvement, but the good news is that change is possible through coordinated action. By adopting stronger policies, investing in new technologies, and creating partnerships, governments and businesses can overcome the current challenges to unlock packaging circularity at scale.

At this crucial juncture, organizations must play their part by aligning with sustainable innovations. Industries now have access to cutting-edge solutions like Avery Dennison's pressure-sensitive label technology, enabling cleaner recycling and material reuse. With these tools, companies can achieve their emissions goals, foster greater consumer trust, and, most importantly, contribute to a more sustainable future.

Interested in positioning your business as a leader in sustainable packaging? Contact us today to learn how innovative solutions, like pressure-sensitive labels, can help optimize recycling processes while driving packaging circularity.

Digital Solutions

Rethinking Recycling Infrastructure in Asia for Packaging Circularity

The Recycling Challenge in Asia

Why Recycling Infrastructure Matters for Packaging Circularity

Building Solutions for a Stronger Recycling Infrastructure

The Path Forward