- 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
- The U.S. dominated the compostable packaging market with the largest revenue share in 2024, driven by advanced packaging technologies, strong regulatory frameworks promoting sustainability, and growing consumer preference for eco-friendly packaging solutions
- Canada is expected to be the fastest-growing market for compostable packaging during the forecast period, owing to nationwide bans on single-use plastics, rising environmental awareness, and supportive federal and provincial initiatives encouraging compostable alternatives across industries
- The Bags segment held the largest market share in 2024, valued at approximately USD 9.6 million, driven by its widespread application across retail, food service, and grocery sectors, increasing bans on conventional plastic bags, and rising consumer preference for compostable carry solutions
