It doesn't work because the packaging isn't recycled. You're not allowed to use post-consumer plastic to make food grade PP [1]. So %0 of food packaging is recycled as food packaging. Sometimes it is turned into insulation or polyester for clothing, but it rarely if ever is turned into hard plastic again. PP can only be recycled about 3 times as hard plastic before the mechanical properties become unusable and the plastic comes out visibly brittle and rough. ABS is similarly hard to recycle, and colored plastics cannot be turned into white plastic which can be used to make colored parts.

The only recycled plastic in your life is:

1. polyester clothing 2. building materials 3. agricultural materials

3 is pretty ironic. You're allowed to grow a plant in a recycled container, but once you harvest that plant, it must be stored in a food grade container which cannot be recycled.

[1] http://nextek.org/portfolio/food-grade-recycled-pp/