Supply Chain Ecosystem Analysis now part of DBMR Reports
Market Size in USD Billion
| 2025 –2032 | |
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USD 1.32 Billion |
| USD 4.60 Billion | |
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North America Compostable Packaging Market Segmentation, By Product Type (Bags, Trays, Cups, Plates, Films, Lids, Straws, Cutlery, Bowls, Clamshells, Pouches & Sachets, and Others), Material (Plastic, Paper & Paperboard, 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 & Beverages, Medical, Automotive, Electrical & Electronics, Agriculture, Textile Goods, Personal & Home Care, Chemical, and Others) - Industry Trends and Forecast to 2032
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Attributes
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Compostable Packaging Key Market Insights
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Segments Covered
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Countries Covered
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North America
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Key Market Players
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Market Opportunities
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Value Added Data Infosets
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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 import export analysis, production capacity overview, production consumption analysis, price trend analysis, climate change scenario, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.
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“Rising Innovation in Biopolymer Materials and Composting Infrastructure”
Driver
“Government Bans and Corporate Commitments to Sustainability”
Restraint/Challenge
“Lack of Composting Infrastructure and High Cost of Materials”
The market is segmented on the basis of product type, material, packaging layer, distribution channel, and end-user.
• By Product Type
On the basis of product type, the North America Compostable Packaging Market is segmented into bags, trays, cups, plates, films, lids, straws, cutlery, bowls, clamshells, pouches & sachets, and others. The bags segment held the largest market revenue share in 2024, primarily due to their widespread application in grocery, retail, and food delivery sectors. The surge in bans on conventional plastic carry bags across countries such as India, Thailand, and Australia has led to significant demand for compostable alternatives. Compostable bags are valued for their biodegradability, regulatory compliance, and consumer appeal, especially in eco-conscious urban markets.
The clamshells segment is expected to witness the fastest CAGR from 2025 to 2032. Their popularity is rising rapidly in ready-to-eat food packaging and takeaway services due to convenience, sturdiness, and compostability. Innovations in heat-resistant PLA-based and paper-based clamshell packaging are further contributing to this segment’s momentum.
• By Material
Based on material, the market is segmented into plastic, paper & paperboard, and others. The plastic segment dominated the market in 2024, largely driven by the extensive use of bioplastics such as PLA and starch-based polymers, which mimic the flexibility and strength of conventional plastics while offering compostable properties. PLA’s cost-effectiveness and ease of processing make it a preferred choice for mass production, especially in single-use food service applications.
The paper & paperboard segment is anticipated to grow at the highest CAGR during the forecast period. The natural biodegradability, recyclability, and aesthetic appeal of paper packaging have driven its increased usage, especially for eco-friendly branding in the personal care and F&B sectors.
• By Packaging Layer
On the basis of packaging layer, the market is segmented into primary packaging, secondary packaging, and tertiary packaging. The primary packaging segment accounted for the largest market revenue share in 2024, owing to its direct contact with products in the food, medical, and retail sectors. This includes compostable trays, cups, and pouches that maintain freshness and ensure food safety while complying with plastic reduction mandates.
The secondary packaging segment is expected to register the fastest growth during the forecast period, as brands increasingly shift to sustainable outer packaging for shipping, presentation, and branding purposes. Compostable corrugated board and molded pulp solutions are gaining traction in electronics and consumer goods.
• By Distribution Channel
On the basis of distribution channel, the market is segmented into B2B, supermarkets/hypermarkets, departmental stores, convenience stores, specialty stores, e-commerce, and others. The B2B segment held the largest share in 2024, as food chains, hospitality firms, and packaging wholesalers procure compostable packaging in bulk for operational use and resale. Partnerships between packaging manufacturers and restaurant chains, especially in urban markets of Japan and Singapore, are driving this segment.
The e-commerce segment is anticipated to witness the highest CAGR from 2025 to 2032. The growing trend of eco-friendly online shopping platforms and availability of customizable compostable packaging options through digital channels are enhancing accessibility and awareness among SMEs and startups.
• By End-User
By end-user, the market is segmented into food & beverages, medical, automotive, electrical & electronics, agriculture, textile goods, personal & home care, chemical, and others. The food & beverages segment held the dominant share in 2024, supported by the demand for eco-friendly alternatives for disposable tableware, containers, and takeaway packaging. Regulatory pressure on food service outlets and rising consumer preference for sustainable dining have fueled growth across countries such as Australia, South Korea, and India.
The personal & home care segment is expected to grow at the fastest rate during the forecast period, as cosmetic and wellness brands embrace sustainable packaging to align with their green marketing strategies. Compostable sachets and jars made from bio-based materials are gaining popularity among environmentally conscious consumers.
North America Compostable Packaging Market Regional Analysis
Canada Compostable Packaging Market Insight
Canada is anticipated to experience significant growth during the forecast period, propelled by the federal government’s Single-Use Plastics Prohibition Regulations and strong consumer demand for sustainable packaging. Municipal composting programs in provinces such as British Columbia and Ontario are enhancing waste processing capabilities. Additionally, collaborations between local businesses and packaging innovators are driving the development of home-compostable solutions tailored to Canadian environmental standards and consumer preferences.
The Compostable Packaging industry is primarily led by well-established companies, including:
SKU-
To support market growth and help clients navigate the impact of geopolitical shifts, DBMR has integrated in-depth supply chain analysis into its North America 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 North America 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.
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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