Global Compostable Packaging Market – Industry Trends and Forecast to 2031

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, PBAT, PBS, TPLA and CPLA, Bamboo, Cellulose, Wheat Straw Fiber, Polylactic Acid (PLA), PHA, Starch Blends, and 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 2031.

Compostable Packaging Market Analysis and Size

The rising consumer demand for compostable materials, companies are actively innovating eco-friendly packaging solutions to align with environmental concerns. APP Sinar Mas, a prominent player in the pulp and paper industry, has introduced Foopak Bio Natura, an advanced eco-friendly paperboard catering to the food and beverage packaging market. This sustainable solution, inspired by nature, is specifically designed for food packaging and single-use cups. Foopak Bio Natura exemplifies the industry's commitment to compostable packaging as a sustainable and eco-friendly approach to meet evolving consumer preferences.

Data Bridge Market Research analyses the global compostable packaging market, valued at USD 52.29 billion in 2023, will reach USD 84.60 billion by 2031, growing at a CAGR of 6.20% during the forecast period of 2024 to 2031. 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, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.         

Report Scope and Market Segmentation      

Market Definition

Compostable products undergo biodegradation and disintegration into natural elements such as biomass, water, and carbon dioxide in a composting environment, leaving no harmful residues in the soil. Compostable plastic packaging, incorporating materials such as PBS, PBAT, PHA, PLA, and starch blends, mirrors conventional plastics in qualities such as shelf stability and durability but distinguishes itself by being fully compostable. These materials contribute nutrients to the soil upon complete breakdown.

Global Compostable Packaging Market Dynamics

Drivers

• Rise in Emerging Markets Leads to the Adoption of Compostable Packaging Materials

As developing economies experience rapid industrialization and urbanization, there is an increased consumer awareness and demand for sustainable packaging solutions. These emerging markets often witness a growing middle-class population with heightened environmental consciousness, driving the adoption of compostable packaging materials.

• Growing Government Initiatives Reduces the Concerns Related to Plastic Waste

Governments are increasingly emphasizing environmentally sustainable practices, prompting regulations and policies that incentivize or mandate the use of compostable packaging materials. These initiatives aim to reduce the environmental impact of traditional packaging and address concerns related to plastic waste. The support from authorities creates a conducive environment for businesses to adopt compostable packaging solutions, fostering a global shift towards eco-friendly alternatives. As governments actively champion sustainability, the market for compostable packaging experiences significant growth, driven by a collective effort to create a more environmentally conscious and responsible packaging ecosystem.

Opportunities

• Increasing Demand of Compostable Packaging in the Food Industry

As consumers increasingly prioritize sustainable practices, there is a growing need for eco-friendly packaging solutions within the food sector. Compostable packaging addresses environmental concerns and aligns with the industry's push towards sustainability. This trend opens avenues for manufacturers to provide innovative packaging options that meet the rigorous standards of the food industry and contribute to reducing environmental impact.

• Growing Awareness of Packaging Waste Accumulating in Landfills

The heightened demand for sustainable packaging alternatives that minimize the impact on landfills. Compostable packaging, designed to biodegrade naturally, addresses this concern by offering an eco-friendly solution. This trend aligns with the increasing preference for products that support environmental sustainability, creating a substantial market opportunity for companies investing in compostable packaging solutions. The global compostable packaging market is well-positioned to capitalize on this shift in consumer behavior, driving innovation and adoption of sustainable packaging practices.

Restraints/Challenges

• Higher Initial Costs Compared to Traditional Packaging Options

While there is a growing demand for sustainable packaging solutions, the production and adoption of compostable materials often involve higher initial costs compared to traditional packaging options. Companies may face challenges in integrating compostable alternatives into their existing processes, and consumers may be hesitant due to perceived higher prices. The supply chain complexities and limited infrastructure for compostable waste management contribute to increased operational costs.

• Lack of Sufficient Technology Limits Adoption of Compostable Packaging

The lack of technology limitation hampers the widespread adoption and production of compostable packaging materials. The absence of advanced technologies for efficient manufacturing processes and cost-effective production methods poses challenges for the industry's scalability. Inadequate infrastructure and technology may hinder the development of innovative compostable packaging solutions, limiting the market's potential growth.

• Incorporating Expensive Technologies Restraints the Market

Finding ways to incorporate expensive new technology into the packaging while maintaining or lowering customer pricing is the biggest challenge facing businesses in the smart packaging sector. Additional challenges include educating consumers about the benefits of this type of packaging and developing novel manufacturing techniques for technologically advanced sensors that can comply with current packaging regulations.

This global 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 global 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.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Developments

•  In 2023, Biopac UK Ltd. launched an innovative range of compostable cling film and stretch wrap, providing a sustainable alternative to traditional plastic packaging. The materials offer effective food preservation while being environmentally friendly
• In 2022, NatureWorks expanded its Ingeo biopolymer production capacity in Thailand to meet the increasing demand for compostable plastic packaging materials. The investment supports the development of sustainable packaging solutions, emphasizing the company's commitment to eco-friendly practices
• In 2021, Novamont launched MATER-BI, a new line of compostable packaging films, enhancing their portfolio of biodegradable and compostable plastic packaging materials. These films are designed for various packaging applications, combining high performance with environmental benefits
• In 2020, BASF collaborated with TIPA to develop a range of fully compostable packaging solutions, addressing the global demand for sustainable packaging options. The partnership aimed to promote the adoption of compostable plastic packaging materials across industries, contributing to eco-friendly practices

Global Compostable Packaging Market Scope

The global compostable packaging market is segmented on the basis of product, 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
• PBAT
• PBS
• TPLA and CPLA
• Bamboo
• Cellulose
• Wheat Straw Fiber
• Polylactic Acid (PLA)
• PHA
• Starch Blends
• 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

Global Compostable Packaging Market Regional Analysis/Insights

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

The countries covered in the global 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

North America dominates the compostable packaging market in both revenue and market share, driven by a rising demand for sustainable packaging solutions in the region. The increasing awareness of environmental concerns and a growing preference for eco-friendly alternatives contribute to North America's dominance in the compostable packaging sector. This trend reflects a shift towards more environmentally conscious consumer choices and corporate sustainability initiatives in the region.

The Asia-Pacific is expected to experience rapid growth in the projected period, driven by substantial demand from diverse industries and government initiatives focused on optimizing packaging management. This anticipated development highlights the region's key role in meeting the rising needs of end users and aligning with efficient packaging practices, contributing to its status as the fastest-growing region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as 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 Global Compostable Packaging Market Share Analysis

The global 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 global compostable packaging market.

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

• TIPA LTD (Israel)
• SmartSolve Industries (U.S.)
• Özsoy Plastik (Turkey)
• ultragreen (U.S.)
• Hosgör Plastik (Turkey)
• Eurocell S.r.l (U.K.)
• Tetra Pak Group (Switzerland)
• Kruger Inc. (Canada)
• Amcor plc (Switzerland)
• Mondi (U.K.)
• International Paper (U.S.)
• Smurfit Kappa (Ireland)
• DS Smith (U.K.)
• Klabin SA (Brazil)
• Rengo Co. Ltd (Japan)
• WestRock Company (U.S.)
• Stora Enso (Sweden)
• Bemis Manufacturing Company (U.S.)
• BASF SE (Germany)
• Clearwater Paper Corporation (U.S.)