Global Compostable Packaging Market – Industry Trends and Forecast to 2029

Global Compostable Packaging Market, By Product (Bags, Trays, Cups, Plates, Films, Lids, Straws, Cutlery, Bowls, Clamshells, Pouches and Sachets, Others), Material (Plastic, Paper and Paperboard, Others), Packaging Layer (Primary Packaging, Secondary Packaging, Tertiary Packaging), Distribution Channel (B2B, Supermarkets/Hypermarkets, Departmental Stores, Convenience Stores, Specialty Stores, E-commerce, Others), End-User (Food and Beverages, Medical, Automotive, Electrical and  Electronics, Agriculture, Textile Goods, Personal and Home Care, Chemical, Others),– Industry Trends and Forecast to 2029

Market Analysis and Size

With increasing consumer demand for compostable materials, companies are developing eco-friendly packaging to satisfy their consumers and focus on improving the world. APP Sinar Mas as one of the leading company of pulp and paper which has brought an advanced eco-friendly solution in the food and beverage packaging market.  Foopak Bio Natura is also designed eco-friendly paperboard that takes inspiration from nature. It is appropriate for food packaging and single-use cup. Compostable packaging represents a sustainable, eco-friendly process of packaging.

Data Bridge Market Research analyses that the compostable packaging market was valued at USD 46360.00 million in 2021 and is expected to reach USD 75013.52 million by 2029, registering a CAGR of 6.20 % during the forecast period of 2022 to 2029. The market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, patent analysis and technological advancements.     

Report Scope and Market Segmentation

Market Definition

Compostable products are those product which can biodegrade and disintegrate into natural elements such as biomass, water, and carbon dioxide in a composting environment and leaving no harmful element in the soil. The compostable plastic packaging material contains PBS, PBAT, PHA, PLA, starch blends. These compostable mimic conventional plastic's positive qualities, such as shelf stability, barrier properties, durability, etc., with one difference, i.e. these materials are fully compostable. Compostable material are providing nutrients to the earth when it has completely broken down. In order for packaging material and products to qualify as compostable, they must completely decompose and break down into natural elements within a short time after disposal.

Compostable Packaging Market Dynamics

Drivers

• Rise the demand in food industry

The compostable packaging in the food and beverage industry is expected to witness the market's growth due to the nonstop demand for bottled water and non-alcoholic beverages in the market. The demand for bottled water is attributed to customers' propensity for specifically demanding high-quality drinking water due to the fear of diseases resulting from drinking polluted tap water, and the ease of convenience and portability provided by bottled water.?

• Awareness of packaging waste in landfills and oceans

The awareness of packaging waste leakage in public, especially for plastic waste, into the environment has augmented considerably during past years. This has enforced to increase the demand for sustainable effort from brand retailers and owners to choose compostable packaging materials which are expected to increase the demand of compostable packaging in the market

• Increase the demand of ecofriendly packaging

Increasing awareness regarding environmental packaging across the developed countries is growing the adoption rate of compostable packaging in large companies, for example the Coca-Cola Company, Unilever Group, and Danone. These companies are adopting compostable packaging to retain their customer base, which is driving the compostable packaging market globally.

Opportunities

The government's rising initiatives for manufacturing compostable materials for the packaging are expected to accelerate the compostable packaging market. The increasing investments for these packaging solutions will also provide the profitable opportunities for the growth of the compostable packaging market. Furthermore, increase in emerging new markets and strategic collaborations will also act as market drivers and further increase useful opportunities for the market's growth rate.

Restraints/ Challenges

However, cost effectiveness and Lack of sufficient technology are the major challenges which are expected to hamper market growth rate. Changing consumer mind-set which has associated with higher prices than conventional products is projected to be a major challenge faced by end user industry. Other factors, such as shorter life and inability to recycle some materials that are not completely compostable, are anticipated to restrain the market growth to some extent. Furthermore, cross-contamination in recycling facilities, lower strength and load-carrying capacity of compostable materials could further obstruct the market's growth rate.

This compostable packaging market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the compostable packaging market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Compostable Packaging Market

Most industries have been negatively impacted during Covid-19 pandemic across the globe. This outbreak has significantly disrupted manufacturing and supply-chain operations as a result of several lockdowns, as well as other limitations that the government imposed over the world. This same applies to the global compostable packaging market. Furthermore, consumer demand has also subsequently decreased, eliminating non-essential expenses from their respective budgets but increasing the demand for online commerce. However, as respective governing authorities start to lift these imposed lockdowns, the global compostable packaging market is anticipated to improve accordingly.

Global Compostable Packaging Market Scope

The compostable packaging market is segmented on the basis of products, material, packaging layer, distribution channel and end-user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product

• Bags
• Trays
• Cups
• Plates
• Films
• Lids
• Straws
• Cutlery
• Bowls
• Clamshells
• Pouches and Sachets
• Others

Material

• Plastic
• Paper and Paperboard
• Others

 Packaging Layer

• Primary Packaging
• Secondary Packaging
• Tertiary Packaging

Distribution Channel

• B2B
• Supermarkets/Hypermarkets
• Departmental Stores
• Convenience Stores
• Specialty Stores
• E-commerce
• Others

 End-User

• Food and Beverages
• Medical
• Automotive
• Electrical and Electronics
• Agriculture
• Textile Goods
• Personal and Home Care
• Chemical
• Others

Compostable Packaging Market Regional Analysis/Insights

The compostable packaging market is analysed and market size insights and trends are provided by country, products, material, packaging layer, distribution channel and end-user as referenced above.

The countries covered in the compostable packaging market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America

During the forecast period, North America dominates the compostable packaging market in terms of revenue and market share. This is due to the growing demand for compostable packaging in this region. The Asia-Pacific region leads the compostable packaging market due to favourable regulations from the government and increased awareness among the consumers within this region.

During the projected period, Asia-Pacific is anticipated to be the fastest developing region due to significant demand from various end user industries and government emphasis on efficient packaging management.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Compostable Packaging Market Share Analysis

The compostable packaging 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 compostable packaging market.

Some of the major players operating in the compostable packaging market are:

• TIPA Ltd (Israel)
• SmartSolve Industries (US)
• Özsoy Plastik (Turkey)
• Ultra-Green Sustainable Packaging (US)
• Hosgör Plastik (Turkey)
• Eurocell S.r.l (UK)
• Tetra Pak International SA (Switzerland)
• (US), Kruger Inc. (Canada)
• Amcor PLC (Switzerland)
• Mondi (UK)
• International Paper Company (US)
• Smurfit Kappa (US)
• DS Smith (UK)
• Klabin SA (Brazil)
• Rengo Co. Ltd (Japan)
• WestRock Company (US)
• Stora Enso (Sweden)
• Bemis manufacturing company (US)
• Rocktenn (US)
• BASF SE (Germany)
• Clearwater Paper Corporation (US)