Global Compostable Packaging Market
Market Size in USD Billion
CAGR :
% 
USD
55.53 Billion
USD
89.85 Billion
2024
2032
 Forecast Period |
2025 –2032 |
 Market Size (Base Year) |
USD 55.53 Billion |
 Market Size (Forecast Year) |
USD 89.85 Billion |
 CAGR |
% |
| Major Markets Players |
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Global Compostable Packaging Market Segmentation, By Product (Bags, Trays, Cups, Plates, Films, Lids, Straws, Cutlery, Bowls, Clamshells, Pouches and Sachets, and Others), Material (Plastic, Paper and Paperboard, PBAT, PBS, TPLA and CPLA, Bamboo, Cellulose, Wheat Straw Fiber, Polylactic Acid (PLA), PHA, Starch Blends, and Others), Packaging Layer (Primary Packaging, Secondary Packaging, and Tertiary Packaging), Distribution Channel (B2B, Supermarkets/Hypermarkets, Departmental Stores, Convenience Stores, Specialty Stores, E-commerce, and Others), End-User (Food and Beverages, Medical, Automotive, Electrical and Electronics, Agriculture, Textile Goods, Personal and Home Care, Chemical, and Others) - Industry Trends and Forecast to 2032
Compostable Packaging Market Size
- The global compostable packaging market was valued at USD 55.53 billion in 2024 and is expected to reach USD 89.85 billion by 2032
- During the forecast period of 2025 to 2032 the market is likely to grow at a CAGR of 6.20%, primarily driven by increasing consumer demand for sustainable and eco-friendly packaging solutions
- This growth is driven by advancements in biodegradable material technologies, such as plant-based polymers and water-soluble films
Compostable Packaging Market Analysis
- The compostable packaging market has experienced substantial growth, driven by increasing consumer awareness of environmental sustainability and plastic pollution. The rising demand for biodegradable, plant-based, and recyclable packaging materials has led to the widespread adoption of compostable packaging across various industries, including food and beverage, personal care, and e-commerce. Advancements in bio-based polymers, water-soluble materials, and sustainable manufacturing techniques are enhancing the market’s potential, ensuring a balance between environmental responsibility and product functionality
- The market is primarily fueled by government regulations restricting single-use plastics, rising investments in eco-friendly packaging solutions, and a shift towards corporate sustainability initiatives. Businesses are increasingly adopting compostable packaging for food delivery, retail, and FMCG sectors to meet consumer expectations and reduce environmental impact. In addition, technological advancements in packaging durability, shelf life extension, and composting efficiency are driving greater adoption
- For instance, in Europe, leading supermarket chains and food brands are replacing conventional plastic packaging with certified compostable alternatives, ensuring compliance with regulatory mandates while catering to eco-conscious consumers
- Globally, the compostable packaging market is witnessing rapid innovation and expansion, with developments in seaweed-based films, mushroom-based packaging, and home-compostable flexible pouches revolutionizing the industry. As brands and manufacturers continue to adopt sustainable solutions, the market is set to grow significantly, reinforcing the circular economy and waste reduction initiatives worldwide
Report Scope and Compostable Packaging Market Segmentation
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Attributes |
Compostable Packaging Key Market Insights |
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Segments Covered |
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Countries Covered |
North America
Europe
Asia-Pacific
Middle East and Africa
South America
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Key Market Players |
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Market Opportunities |
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Value Added Data Infosets |
In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, pricing analysis, brand share analysis, consumer survey, demography analysis, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework |
Compostable Packaging Market Trends
“Advancements in Biodegradable and Bio-Based Packaging Materials”
- The demand for biodegradable and bio-based packaging materials is growing as companies seek eco-friendly alternatives to traditional plastic packaging while maintaining durability and product protection. Innovations in plant-based polymers, mycelium packaging, and algae-based films are revolutionizing the industry by offering fully compostable, non-toxic, and sustainable solutions
- Leading manufacturers are investing in research and development of bio-based plastics, focusing on renewable raw materials such as cornstarch, sugarcane, and cellulose to create packaging that degrades naturally without harming the environment
- Governments and regulatory bodies worldwide are implementing stricter regulations on single-use plastics, encouraging businesses to transition towards compostable materials that comply with circular economy goals
For instance,
- In January 2024, BASF introduced a new line of compostable bioplastics designed for food packaging applications, offering enhanced flexibility and strength while maintaining full biodegradability
- In October 2023, Notpla, a U.K.-based sustainable packaging startup, launched algae-based packaging solutions for the food service industry, replacing traditional plastic coatings in takeaway containers
- In August 2023, TIPA expanded its range of compostable flexible packaging to include high-barrier films suitable for fresh produce, bakery items, and dry foods
- As innovation in biodegradable and bio-based packaging continues, brands across industries are expected to adopt compostable solutions, driving long-term growth and environmental benefits in the compostable packaging market
Compostable Packaging Market Dynamics
Driver
“Stringent Government Regulations and Bans on Single-Use Plastics”
- Governments worldwide are implementing strict regulations and bans on single-use plastics, pushing businesses to adopt compostable and biodegradable packaging solutions that align with sustainability goals and circular economy principles
- Regulatory bodies are introducing extended producer responsibility (EPR) programs, mandating that manufacturers reduce plastic waste, invest in eco-friendly materials, and improve waste management infrastructure to promote compostable packaging adoption
- The rising implementation of plastic taxes, eco-labeling requirements, and sustainability certifications is compelling companies to transition toward biodegradable and compostable packaging options to remain compliant and appeal to environmentally conscious consumers
For instance,
- In January 2024, the European Union introduced stricter regulations on plastic packaging waste, requiring companies to use a minimum percentage of compostable materials in their products
- In July 2023, California enforced its Plastic Pollution Prevention Act, mandating a phased reduction in single-use plastic packaging and encouraging businesses to use compostable alternatives
- In March 2023, India expanded its ban on single-use plastics, leading to a surge in demand for compostable food packaging and biodegradable bags
- As governments continue to tighten restrictions on plastic waste, the Compostable Packaging market will witness significant growth, driving innovation, investment, and adoption of sustainable alternatives across various industries
Opportunity
“Expansion of Compostable Packaging in the Foodservice and Takeout Industry”
- The growing demand for sustainable food packaging in restaurants, cafés, and takeaway services is creating new opportunities for compostable packaging solutions, as businesses seek to minimize plastic waste and meet consumer expectations for eco-friendly dining experiences.
- Fast-food chains, meal delivery services, and catering companies are increasingly investing in compostable containers, cutlery, and wraps to enhance sustainability efforts, comply with regulations, and attract environmentally conscious customers.
- The rise of urbanization, busy lifestyles, and online food delivery platforms has fueled the demand for biodegradable and compostable food packaging, leading to increased adoption of plant-based materials and water-soluble alternatives in the foodservice industry.
For instance,
- In October 2024, McDonald’s expanded its compostable packaging initiative by replacing plastic cutlery and straws with biodegradable fiber-based alternatives across multiple markets
- In July 2023, Just Salad introduced a 100% compostable takeout packaging line, reducing its reliance on single-use plastics and reinforcing its sustainability commitment
- In May 2023, Deliveroo partnered with sustainable packaging companies to provide restaurants with affordable compostable containers and utensils, promoting eco-friendly takeout solutions
- As sustainability becomes a key differentiator in the foodservice industry, the adoption of compostable packaging will continue to grow, driving market expansion, regulatory compliance, and innovation in biodegradable food packaging solutions
Restraint/Challenge
“High Production Costs Limiting Mass Adoption of Compostable Packaging”
- The higher cost of compostable packaging materials compared to conventional plastic and synthetic alternatives poses a significant challenge for widespread adoption, especially among small and mid-sized businesses
- Raw material sourcing, specialized manufacturing processes, and compliance with compostability standards contribute to elevated production expenses, making it difficult for companies to offer cost-competitive compostable packaging solutions
- Limited economies of scale, high RandD investments, and the need for improved durability and shelf-life stability further increase the financial burden on manufacturers, restricting the mass adoption of compostable alternatives in mainstream packaging markets
For instance,
- In June 2023, a study by the Ellen MacArthur Foundation emphasized the need for government subsidies and incentives to make compostable materials more affordable and scalable for the packaging industry
- To drive mass adoption and cost competitiveness, companies in the Compostable Packaging market must invest in material innovations, scale production capabilities, and seek regulatory support to reduce costs and enhance affordability across various industries
Compostable Packaging Market Scope
The market is segmented on the basis of product, material, packaging layer, distribution channel, and end-user.
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Segmentation |
Sub-Segmentation |
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By Product |
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By Material |
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By Packaging Layer |
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By Distribution Channel |
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By End-User |
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Compostable Packaging Market Regional Analysis
“North America is the Dominant Region in the Compostable Packaging Market”
- North America leads the compostable packaging market in both revenue and market share, driven by a strong demand for sustainable packaging solutions
- Growing environmental awareness and a preference for eco-friendly alternatives are key factors propelling the region’s dominance in the sector
- Corporate sustainability initiatives and shifting consumer preferences towards environmentally conscious choices further support market growth
- As sustainability continues to gain momentum, North America is expected to maintain its leadership in the compostable packaging market
“Asia-Pacific is Projected to Register the Highest Growth Rate”
- Asia-Pacific is set for rapid growth in the compostable packaging market, driven by strong demand from various industries
- Government initiatives supporting sustainable packaging management are accelerating the region’s market expansion
- The rising need for efficient and eco-friendly packaging solutions is positioning Asia-Pacific as a key player in the global market
- With continuous advancements and policy support, Asia-Pacific is expected to remain the fastest-growing region in the compostable packaging sector
Compostable Packaging Market Share
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
The Major Market Leaders Operating in the Market Are:
- TIPA LTD (Israel)
- SmartSolve - Water Soluble Materials (U.S.)
- Özsoy Plastik (Turkey)
- ultragreen (U.S.)
- Hosgör Plastik (Turkey)
- Eurocell Plc (U.K.)
- Tetra Pak International S.A. (Switzerland)
- Kruger Inc. (Canada)
- Amcor plc (Switzerland)
- Mondi (U.K.)
- International Paper (U.S.)
- Smurfit Kappa (Ireland)
- DS Smith (U.K.)
- Klabin S.A. (Brazil)
- Rengo Co., Ltd. (Japan)
- WestRock Company (U.S.)
- Stora Enso (Sweden)
- Bemis Manufacturing Company (U.S.)
- BASF (Germany)
- Clearwater Paper Corporation (U.S.)
Latest Developments in Global Compostable Packaging Market
- In January 2024, Sealed Air launched its new CRYOVAC brand compostable overwrap tray at the International Product and Processing Expo (IPPE) 2024, marking a major step forward in sustainable packaging for protein products. This biobased alternative to expanded polystyrene (EPS) trays aligns with the industry's shift towards eco-friendly packaging solutions
- In September 2023, Pakka Ltd. introduced a new range of compostable flexible packaging solutions targeting the Fast-Moving Consumer Goods (FMCG) sector. This launch underscores the company’s commitment to reducing packaging waste, particularly in India, and enhancing sustainability in the industry
- In August 2022, TIPA unveiled a new compostable packaging solution developed using a unique blend of polymers. Designed for applications such as compostable films and laminates, this innovation caters to markets including fashion, fresh produce, and dry food packaging, reinforcing the demand for biodegradable alternatives
- In June 2022, Green Dot Bioplastics expanded its Terratek BD line by introducing nine new compostable grades tailored for single-use packaging applications. This development strengthens the company's efforts in improving biodegradability rates across film extrusion, thermoforming, and injection molding processes
- In August 2021, Crawford Packaging launched an eco-friendly poly-mailer made from 100% recycled materials. Despite its sustainable composition, the poly-mailer maintains the same high quality as traditional versions, offering a cost-effective and lightweight alternative for environmentally conscious businesses
- In January 2021, Novamont acquired BioBag Group to drive innovation in organic waste collection and composting systems. This strategic acquisition has not only reinforced Novamont’s presence in the compostable packaging sector but also created new growth opportunities for sustainable packaging solutions
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Global Compostable Packaging Market, Supply Chain Analysis and Ecosystem Framework
To support market growth and help clients navigate the impact of geopolitical shifts, DBMR has integrated in-depth supply chain analysis into its Global Compostable Packaging Market research reports. This addition empowers clients to respond effectively to global changes affecting their industries. The supply chain analysis section includes detailed insights such as Global Compostable Packaging Market consumption and production by country, price trend analysis, the impact of tariffs and geopolitical developments, and import and export trends by country and HSN code. It also highlights major suppliers with data on production capacity and company profiles, as well as key importers and exporters. In addition to research, DBMR offers specialized supply chain consulting services backed by over a decade of experience, providing solutions like supplier discovery, supplier risk assessment, price trend analysis, impact evaluation of inflation and trade route changes, and comprehensive market trend analysis.
Research Methodology
Data collection and base year analysis are done using data collection modules with large sample sizes. The stage includes obtaining market information or related data through various sources and strategies. It includes examining and planning all the data acquired from the past in advance. It likewise envelops the examination of information inconsistencies seen across different information sources. The market data is analysed and estimated using market statistical and coherent models. Also, market share analysis and key trend analysis are the major success factors in the market report. To know more, please request an analyst call or drop down your inquiry.
The key research methodology used by DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market and primary (industry expert) validation. Data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Patent Analysis, Pricing Analysis, Company Market Share Analysis, Standards of Measurement, Global versus Regional and Vendor Share Analysis. To know more about the research methodology, drop in an inquiry to speak to our industry experts.
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