<p>Life Cycle Assessment (LCA) is a critical tool for evaluating the environmental impacts of packaging materials, yet traditional approaches often focus on isolated stages of a product’s life cycle. This study adopts the PET bottle’s Cradle-to-Cradle (C2C) framework, emphasizing a circular economy through a closed-loop system that integrates resin production, usage, and recovery processes. By introducing an optimized LCA framework, this research provides a comprehensive evaluation of the complete life cycle of PET bottles, from resin production and usage to distribution and end-of-life management. Unlike conventional LCA studies, this approach captures interdependencies across life cycle stages, offering a robust platform for assessing environmental performance. The study employs a three-phase LCA framework covering resin production, consumption, and recycling stages. Environmental impacts are analyzed using the ReCiPe (Endpoint) method, enabling a detailed assessment of the ultimate consequences of emissions, resource depletion, and ecological damage. Advanced recycling technologies, such as enzyme-based hydrolysis, are evaluated for their efficacy in closing the material loop. The findings reveal that the manufacturing and consumption stages are the most environmentally impactful, contributing significantly to emissions and resource depletion. However, advanced recycling techniques, such as enzyme-based hydrolysis with a 97% yield, demonstrate near-zero emissions and offer transformative potential for mitigating these impacts. The study underscores the critical role of recovery strategies in reducing environmental risks and minimizing resource dependency. This research highlights the global implications of integrating holistic LCA methodologies with innovative recycling technologies to foster sustainable resource management. By demonstrating the feasibility of a closed-loop “grave-to-cradle” system, the study establishes a pathway for advancing the circular economy, reducing environmental burdens, and aligning industrial practices with global sustainability goals. These insights provide actionable guidance for policymakers, industry stakeholders, and researchers to address climate change and resource scarcity at a global scale.</p> Graphical abstract <p></p>