This study investigates the exponential growth of plastic waste, a critical global environmental concern exacerbated by rapid population expansion. It examines the packaging plastic value chain by focusing on associated environmental impacts, challenges, and opportunities for advancing a circular economy (CE). The objectives are to trace the evolution of the CE concept, identify key opportunities and implementation barriers, and devise strategies for enhancing its effectiveness. Through a systematic literature review and qualitative interviews, the research delineated the complexities in the lifecycle of post-consumer packaging plastics. The findings highlighted that CE efficacy was significantly influenced by interrelated factors, including product design, consumer behaviour, collection systems, sorting efficiency, and economic viability of mechanical and chemical recycling pathways. Although CE models are promising, this research indicated that the complete elimination of plastic waste remained an uncertain goal. The study, therefore, advocated a comprehensive transformation of the plastic value chain, necessitated by challenges such as heterogeneous waste streams, inconsistent quality of recycled output, and competing economic factors. It is concluded that strategic investments in research, recycling-friendly design, advanced recovery methods, and efficient sorting are essential for producing cost-effective and high-quality recycled products, thereby moving beyond incremental efforts toward a systemic solution.