- Compostable packaging, designed to naturally decompose into non-toxic components, is gaining significant traction across industries due to rising environmental concerns, government regulations on single-use plastics, and the growing demand for sustainable alternatives in both consumer and industrial packaging applications
- The escalating demand for compostable packaging is primarily fueled by increased environmental awareness among consumers, expanding e-commerce and food delivery services, and a rising preference for biodegradable and eco-friendly packaging materials over conventional plastics
- China dominated the compostable packaging market with the largest revenue share in 2024, driven by large-scale manufacturing capabilities, proactive plastic ban policies, and high demand from the food and beverage sector focused on sustainability
- India is expected to be the fastest-growing market for compostable packaging during the forecast period, owing to increasing government initiatives such as the nationwide ban on single-use plastics, growing start-up activity in sustainable packaging, and rising urban consumer demand for eco-friendly products
- The Food & Beverages segment held the largest market share in 2024, due to its extensive consumption of single-use packaging, rising demand for sustainable alternatives in food delivery and takeaway services, and strong regulatory push for eco-friendly materials
