The single-use function of plastic packaging generates a continuously increasing input to the waste management system leading to sustainability challenges. In response, several management strategies along the plastic value chain are proposed including improvements on product design, source-separation, mechanical and optical sorting, and further downstream material recycling. However, in some countries like Sweden, these strategies are often implemented in isolation without considering their combination effects on the performance of the entire plastic value chain. Moreover, the corresponding assessments of these strategies are often limited to material efficiency (i.e., recycling rate) thus overlooking the potential trade-offs with environmental performance. Hence, this study aims to assess the combination effects of different management strategies for plastic packaging in Sweden in terms of both material and environmental dimensions. Over 700 scenarios involving different combinations of management strategies were modeled and assessed through life cycle assessment. The results show that upstream strategies such us polymer restriction especially for food packaging (i.e., limiting to polyethylene terephthalate and polypropylene) lead to higher recycling rates and better environmental performance. In contrast, further downstream material recycling strategies show more apparent trade-offs, especially between recycling rates and environmental impacts related to toxicity. Recommendations for the combinations of management strategies for plastic packaging, which can increase recycling rates and reduce environmental impacts, are presented and discussed.