Compostable Packaging Market, By Material (Polylactic Acid (PLA), Cellulose, Bamboo, Wood, and Polyhydroxyalkanoate (PHA)), By Product (Bags, Trays, Pouches, Films, and Others), By Application (Food & Beverages, Pharmaceuticals, Cosmetics, and Others), By

The Global Compostable Packaging Market is estimated to be valued at USD 76.81 Bn in 2025 and is expected to reach USD 120.14 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 6.6% from 2025 to 2032. The global compostable packaging market has emerged as a promising solution to the escalating environmental concerns associated with conventional packaging materials. Compostable packaging, derived from renewable resources, undergoes decomposition through microbial activity, converting into nutrient-rich compost without leaving toxic residues. This eco-friendly packaging alternative aligns with the growing sustainability consciousness among consumers and businesses worldwide.

Market Dynamics

The global compostable packaging market is driven by several factors, including increasing environmental awareness, supportive government regulations, and the rising demand for sustainable packaging solutions. Consumers are becoming more conscious of the environmental impact of their purchasing decisions, leading to a shift in preference towards eco-friendly packaging alternatives. Governments worldwide are implementing regulations and bans on single-use plastics, further propelling the adoption of compostable packaging. However, the market faces certain restraints, such as higher production costs compared to traditional packaging materials and limited composting infrastructure in certain regions.

Key Features of the Study

• This report provides in-depth analysis of the global compostable packaging market, and provides market size (USD Bn) and compound annual growth rate (CAGR%) for the forecast period (2025–2032), considering 2024 as the base year
• It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
• This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, market trends, regional outlook, and competitive strategies adopted by key players
• It profiles key players in the global compostable packaging market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
• Key companies covered as a part of this study include Novamont S.p.A., BASF SE, NatureWorks LLC, Tetra Pak, Smurfit Kappa Group, Amcor plc, Sealed Air Corporation, Biopac Ltd., Mondi Group, Plantic Technologies Ltd., BioBag International AS, Avery Dennison Corporation, Earthpack, PackTech, and Green Packaging Group
• Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
• The global compostable packaging market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
• Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global compostable packaging market

• Material Insights (Revenue, USD Bn, 2020 - 2032)
• Polylactic Acid (PLA)
• Cellulose
• Bamboo
• Wood
• Polyhydroxyalkanoate (PHA)
• Product Insights (Revenue, USD Bn, 2020 - 2032)
• Bags
• Trays
• Pouches
• Films
• Others
• Application Insights (Revenue, USD Bn, 2020 - 2032)
• Food & Beverages
• Pharmaceuticals
• Cosmetics
• Others
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa
• Key Players Insights
• Novamont S.p.A.
• BASF SE
• NatureWorks LLC
• Tetra Pak
• Smurfit Kappa Group
• Amcor plc
• Sealed Air Corporation
• Biopac Ltd.
• Mondi Group
• Plantic Technologies Ltd.
• BioBag International AS
• Avery Dennison Corporation
• Earthpack
• PackTech
• Green Packaging Group