Global Compostable Packaging Market
Description
MARKET SCOPE:
The global compostable packaging market is projected to grow significantly, registering a CAGR of 7.5% during the forecast period (2026 – 2034).
The global compostable packaging market is being propelled by increasing regulatory pressure and consumer demand for sustainable alternatives to plastic. Governments all over the globe are banning or restricting single-use plastic and promoting environmentally friendly packaging alternatives, compelling industries—food & beverages, retail, and e-commerce—to move towards compostable ones. While doing so, growing environmental awareness among millennials and Gen Z is fueling consumer purchasing behavior, compelling companies to make the move towards biodegradable and compostable packaging to attain improved brand image and loyalty. This convergence of policy awareness and shifting consumer behavior is fueling market adoption significantly.
Technology innovation is another key growth driver in the Compostable Packaging market. Innovation in biopolymers such as PLA, PHA, PBS, and starch blends is improving packaging strength, shelf-life, and water-resistance—making compostable packaging a realistic choice even for challenging applications such as frozen or greasy food. Furthermore, stricter certification regimes (e.g., BPI, EN 13432) and greater investment in composting infrastructure are adding credibility and scale. Smart QR codes for disposal guidance, plus production of home-compostable materials, add to consumer accessibility. These innovations, along with more ambitious corporate sustainability ambitions, are making compostable packaging a mainstream packaging choice.
MARKET OVERVIEW:
Driver: Government Bans on Single-Use Plastics Fueling Compostable Packaging Demand
The rising implementation of bans and restrictions on single-use plastics across the globe is a major driver for the compostable packaging market. Countries like Canada, India, the UK, and the European Union have enacted stringent legislation banning or subjecting severe fines on the use of non-biodegradable plastic packaging. The legislation is driving businesses across industries—particularly food delivery, FMCG, and retail—to switch to more environmentally friendly options like compostable packaging.
Apart from this, consumer awareness regarding plastic pollution and their role in affecting ocean creatures and climate change has increased in the last few years. Because of this, environmentally conscious consumers nowadays are further shifting towards brands that adopt eco-friendly packaging options. This combination of regulation and consumer pressure is driving steady growth in the adoption of compostable packaging and positioning it as a sustainable option compared to conventional plastics.
Restraint: Lack of Industrial Composting Infrastructure Hindering Market Adoption
One of the major restrictions limiting the comprehensive use of compostable packaging is insufficient availability of industrial compostable facilities. Many compost packaging products require specific environmental conditions - such as high humidity and temperature - to effectively degrade, which can only be provided in industrial compostable plants. However, such features are not easily accessible in many parts of the world, especially in rural areas and developing countries. Without proper settlement systems, compostable packaging often ends up in regular landfills, where it may not disintegrate according to intention and behaves like plastic waste instead. This reduces environmental benefits of compostable material and can create confusion among consumers about the correct disposal methods. As a result, lack of infrastructure of life, scalability and reliability of manure packaging is a significant challenge.
Opportunities: Rising Demand for Home-Compostable Packaging Solutions
Growing demand for home-compostable packaging is a significant opportunity for the compostable packaging industry. Unlike industrial compostable materials, home-compostable forms of materials can be composted in typical backyard compost heaps without high temperatures or specialized machinery. This offers consumers more convenience and makes composting more accessible, especially in communities where municipal composting is unavailable or in its infancy. Innovation in this area is driving the development of materials derived from seaweed, corn starch, and cellulose that are certified to break down safely and fully in home environments. As consumers become more interested in sustainable lifestyle habits, the home-compostable packaging market is well-positioned to expand explosively. Businesses using these alternatives not only meet environmental goals but also appeal to a burgeoning demographic of consumers who care about the environment, making it an appealing growth opportunity for packaging companies and retailers.
SEGMENTATION ANALYSIS:
The Food & Beverages Segment is anticipated to grow significantly during the forecast period
The food & beverages segment is expected to dominate the compostable packaging market during the forecast period. This is driven by the growing demand for sustainable packaging in food delivery, takeaway services, and packaged food products. With increasing plastic waste and food safety issues, food service outlets and food manufacturers are rapidly embracing compostable alternatives such as PLA boxes, molded fiber bowls, and compostable packaging films. Government policies prohibiting single-use plastic for food packaging and increasing e-commerce food platforms push adoption even faster. Food and drinks are the primary source of the market revenue in this segment because consumers prefer a greener lifestyle.
REGIONAL ANALYSIS:
The North America region is set to witness significant growth during the forecast period
The North America compostable packaging market is expected to witness significant growth during the forecast period, driven by increasing regulatory pressure to reduce plastic waste, heightened environmental awareness among consumers, and widespread adoption of sustainable practices across industries. Well-established compost for a major part of the United States and Canada markets, due to infrastructure, strong presence of major market players and active government initiative promoting environmentally friendly packaging solutions. To integrate industries such as food and drinks, personal care, and retail into its operation, this area continues to lead in both innovation and consumption of compostable packaging materials.
In addition, green products and corporate stability are motivated by consumer demand manufacturers to invest in certified manure materials that align with circular economy goals. North America's auxiliary policy is combined with advances in compostable material technologies such as the atmosphere, PLA, PHA, and molded fiber, further bolter market entry into the market. The availability of commercial compostable facilities and increasing public-private partnership is strengthening the leadership of the region in sustainable packaging, making it the foundation stone of the global compostable packaging landscape.
COMPETITIVE ANALYSIS:
The global compostable packaging market is reasonably competitive with mergers, acquisitions, and product launches. See some of the major key players in the market.
International Paper
Mayr-Melnhof Karton
Amcor
Baroda Rapids
Biopac
Eurocell
Pappco Greenware
Pactiv Evergreen
Futamura Chemical
Genpak
Graphic Packaging Holding
Mondi
Recent Development:
In October 2023, Mondi announced that its entire range of kraft papers for packaging has been officially certified as compostable, both for home and industrial use, under EN 13432 and NF T 51‑800 standards.
In May 2025, Futamura Chemical partnered with Repaq and GK Sondermaschinenbau to launch a new fully compostable sachet made with its signature NatureFlex film.
In March 2025, Amcor extended its Lift‑Off Sprints initiative, a global challenge inviting startups to develop compostable or recyclable barrier coatings for paper-based substrates.
SCOPE OF THE REPORT:
By Material
It provides a technological development map over time to understand the industry’s growth rate and indicates how the compostable packaging market is evolving.
The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which compostable packaging submarket will be the main driver of the overall market from 2026 to 2034.
It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.
It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2034 and which country will lead the market in 2034.
The global compostable packaging market is projected to grow significantly, registering a CAGR of 7.5% during the forecast period (2026 – 2034).
The global compostable packaging market is being propelled by increasing regulatory pressure and consumer demand for sustainable alternatives to plastic. Governments all over the globe are banning or restricting single-use plastic and promoting environmentally friendly packaging alternatives, compelling industries—food & beverages, retail, and e-commerce—to move towards compostable ones. While doing so, growing environmental awareness among millennials and Gen Z is fueling consumer purchasing behavior, compelling companies to make the move towards biodegradable and compostable packaging to attain improved brand image and loyalty. This convergence of policy awareness and shifting consumer behavior is fueling market adoption significantly.
Technology innovation is another key growth driver in the Compostable Packaging market. Innovation in biopolymers such as PLA, PHA, PBS, and starch blends is improving packaging strength, shelf-life, and water-resistance—making compostable packaging a realistic choice even for challenging applications such as frozen or greasy food. Furthermore, stricter certification regimes (e.g., BPI, EN 13432) and greater investment in composting infrastructure are adding credibility and scale. Smart QR codes for disposal guidance, plus production of home-compostable materials, add to consumer accessibility. These innovations, along with more ambitious corporate sustainability ambitions, are making compostable packaging a mainstream packaging choice.
MARKET OVERVIEW:
Driver: Government Bans on Single-Use Plastics Fueling Compostable Packaging Demand
The rising implementation of bans and restrictions on single-use plastics across the globe is a major driver for the compostable packaging market. Countries like Canada, India, the UK, and the European Union have enacted stringent legislation banning or subjecting severe fines on the use of non-biodegradable plastic packaging. The legislation is driving businesses across industries—particularly food delivery, FMCG, and retail—to switch to more environmentally friendly options like compostable packaging.
Apart from this, consumer awareness regarding plastic pollution and their role in affecting ocean creatures and climate change has increased in the last few years. Because of this, environmentally conscious consumers nowadays are further shifting towards brands that adopt eco-friendly packaging options. This combination of regulation and consumer pressure is driving steady growth in the adoption of compostable packaging and positioning it as a sustainable option compared to conventional plastics.
Restraint: Lack of Industrial Composting Infrastructure Hindering Market Adoption
One of the major restrictions limiting the comprehensive use of compostable packaging is insufficient availability of industrial compostable facilities. Many compost packaging products require specific environmental conditions - such as high humidity and temperature - to effectively degrade, which can only be provided in industrial compostable plants. However, such features are not easily accessible in many parts of the world, especially in rural areas and developing countries. Without proper settlement systems, compostable packaging often ends up in regular landfills, where it may not disintegrate according to intention and behaves like plastic waste instead. This reduces environmental benefits of compostable material and can create confusion among consumers about the correct disposal methods. As a result, lack of infrastructure of life, scalability and reliability of manure packaging is a significant challenge.
Opportunities: Rising Demand for Home-Compostable Packaging Solutions
Growing demand for home-compostable packaging is a significant opportunity for the compostable packaging industry. Unlike industrial compostable materials, home-compostable forms of materials can be composted in typical backyard compost heaps without high temperatures or specialized machinery. This offers consumers more convenience and makes composting more accessible, especially in communities where municipal composting is unavailable or in its infancy. Innovation in this area is driving the development of materials derived from seaweed, corn starch, and cellulose that are certified to break down safely and fully in home environments. As consumers become more interested in sustainable lifestyle habits, the home-compostable packaging market is well-positioned to expand explosively. Businesses using these alternatives not only meet environmental goals but also appeal to a burgeoning demographic of consumers who care about the environment, making it an appealing growth opportunity for packaging companies and retailers.
SEGMENTATION ANALYSIS:
The Food & Beverages Segment is anticipated to grow significantly during the forecast period
The food & beverages segment is expected to dominate the compostable packaging market during the forecast period. This is driven by the growing demand for sustainable packaging in food delivery, takeaway services, and packaged food products. With increasing plastic waste and food safety issues, food service outlets and food manufacturers are rapidly embracing compostable alternatives such as PLA boxes, molded fiber bowls, and compostable packaging films. Government policies prohibiting single-use plastic for food packaging and increasing e-commerce food platforms push adoption even faster. Food and drinks are the primary source of the market revenue in this segment because consumers prefer a greener lifestyle.
REGIONAL ANALYSIS:
The North America region is set to witness significant growth during the forecast period
The North America compostable packaging market is expected to witness significant growth during the forecast period, driven by increasing regulatory pressure to reduce plastic waste, heightened environmental awareness among consumers, and widespread adoption of sustainable practices across industries. Well-established compost for a major part of the United States and Canada markets, due to infrastructure, strong presence of major market players and active government initiative promoting environmentally friendly packaging solutions. To integrate industries such as food and drinks, personal care, and retail into its operation, this area continues to lead in both innovation and consumption of compostable packaging materials.
In addition, green products and corporate stability are motivated by consumer demand manufacturers to invest in certified manure materials that align with circular economy goals. North America's auxiliary policy is combined with advances in compostable material technologies such as the atmosphere, PLA, PHA, and molded fiber, further bolter market entry into the market. The availability of commercial compostable facilities and increasing public-private partnership is strengthening the leadership of the region in sustainable packaging, making it the foundation stone of the global compostable packaging landscape.
COMPETITIVE ANALYSIS:
The global compostable packaging market is reasonably competitive with mergers, acquisitions, and product launches. See some of the major key players in the market.
International Paper
Mayr-Melnhof Karton
Amcor
Baroda Rapids
Biopac
Eurocell
Pappco Greenware
Pactiv Evergreen
Futamura Chemical
Genpak
Graphic Packaging Holding
Mondi
Recent Development:
In October 2023, Mondi announced that its entire range of kraft papers for packaging has been officially certified as compostable, both for home and industrial use, under EN 13432 and NF T 51‑800 standards.
In May 2025, Futamura Chemical partnered with Repaq and GK Sondermaschinenbau to launch a new fully compostable sachet made with its signature NatureFlex film.
In March 2025, Amcor extended its Lift‑Off Sprints initiative, a global challenge inviting startups to develop compostable or recyclable barrier coatings for paper-based substrates.
SCOPE OF THE REPORT:
By Material
- Polyhydroxyalkanoate (PHA)
- Polylactic acid (PLA)
- Bamboo
- Cellulose
- Wood
- Films & wraps
- Cups & bowls
- Bags & pouches
- Trays & plates
- Others
- Food & Beverages
- Healthcare & Pharmaceuticals
- Retail & Consumer Goods
- Agriculture
- Others
- Ready-to-eat foods
- Snacks & confectionery
- Apparel & accessories
- Health & beauty
- Others
- North America (United States & Canada)
- Europe (Germany, UK, France, Spain, Italy and Rest of Europe)
- Asia-Pacific (China, Japan, India, South Korea, Australia and Rest of Asia-Pacific)
- Latin America (Brazil, Mexico, Argentina and Rest of Latin America)
- Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa and Rest of Middle East and Africa)
It provides a technological development map over time to understand the industry’s growth rate and indicates how the compostable packaging market is evolving.
The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which compostable packaging submarket will be the main driver of the overall market from 2026 to 2034.
It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.
It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2034 and which country will lead the market in 2034.
Table of Contents
188 Pages
- 1. Executive Summary
- 1.1. Market Snapshot
- 1.2. Global Compostable Packaging Market - Regional Analysis
- 1.3. Global Compostable Packaging Market - Segment Analysis
- 1.3.1. Global Compostable Packaging Market, By Material
- 1.3.2. Global Compostable Packaging Market, By Product
- 1.3.3. Global Compostable Packaging Market, By End-use Industry
- 1.3.4. Global Compostable Packaging Market, By Application
- 2. Overview And Scope
- 2.1. Market Vision
- 2.1.1. Market Definition
- 2.2. Market Segmentation
- 3. Global Compostable Packaging Market Overview, By Region: 2020 Vs 2025 Vs 2034
- 3.1. Global Compostable Packaging Market, By Region (2020 VS 2025 VS 2034)
- 3.2. North Compostable Packaging Market, By Country (2020 VS 2025 VS 2034)
- 3.3. Europe Compostable Packaging Market, By Country (2020 VS 2025 VS 2034)
- 3.4. Asia-Pacific Compostable Packaging Market, By Country (2020 VS 2025 VS 2034)
- 3.5. Latin America Compostable Packaging Market, By Country (2020 VS 2025 VS 2034)
- 3.6. Middle East & Africa Compostable Packaging Market, By Country (2020 VS 2025 VS 2034)
- 4. Global Compostable Packaging Market Dynamics
- 4.1. Market Overview
- 4.1.1. Market Drivers
- 4.1.1.1. Market Driver 1
- 4.1.1.2. Market Drivers 2
- 4.1.2. Market Restraints/ Challenges Analysis
- 4.1.2.1. Market Restraints/ Challenges Analysis 1
- 4.1.2.2. Market Restraints/ Challenges Analysis 2
- 4.1.3. Market Opportunities
- 4.1.3.1. Market Opportunities 1
- 4.1.3.2. Market Opportunities 2
- 4.2. PESTLE Analysis
- 4.2.1. Political Factors
- 4.2.2. Economic Factors
- 4.2.3. Social Factors
- 4.2.4. Technological Factors
- 4.2.5. Legal Factors
- 4.2.6. Environmental Factors
- 4.3. Value Chain Analysis/Supply Chain Analysis
- 4.4. Porter’s Five Forces Model
- 4.4.1. Bargaining Power of Suppliers
- 4.4.2. Bargaining Power of Buyers
- 4.4.3. The threat of New Entrants
- 4.4.4. Threat of Substitutes
- 4.4.5. Intensity of Rivalry
- 4.5. Covid-19 Impact Analysis on Global Compostable Packaging Market
- ** In – depth qualitative analysis will be provided in the final report subject to market
- 5. Global Compostable Packaging Market, By Material
- 5.1. Overview
- 5.2. Global Compostable Packaging Market By Material (2020 - 2034) (USD Million)
- 5.3. Key Findings for Compostable Packaging Market - By Material
- 5.3.1. Polyhydroxyalkanoate (PHA)
- 5.3.2. Polylactic acid (PLA)
- 5.3.3. Bamboo
- 5.3.4. Cellulose
- 5.3.5. Wood
- 6. Global Compostable Packaging Market, By Product
- 6.1. Overview
- 6.2. Global Compostable Packaging Market By Product (2020 - 2034) (USD Million)
- 6.3. Key Findings for Compostable Packaging Market - By Product
- 6.3.1. Films & wraps
- 6.3.2. Cups & bowls
- 6.3.3. Bags & pouches
- 6.3.4. Trays & plates
- 6.3.5. Others
- 7. Global Compostable Packaging Market, By End-use Industry
- 7.1. Overview
- 7.2. Global Compostable Packaging Market By End-use Industry (2020 - 2034) (USD Million)
- 7.3. Key Findings for Compostable Packaging Market - By End-use Industry
- 7.3.1. Food & Beverages
- 7.3.2. Healthcare & Pharmaceuticals
- 7.3.3. Retail & Consumer Goods
- 7.3.4. Agriculture
- 7.3.5. Others
- 8. Global Compostable Packaging Market, By Application
- 8.1. Overview
- 8.2. Global Compostable Packaging Market By Application (2020 - 2034) (USD Million)
- 8.3. Key Findings for Compostable Packaging Market - By Application
- 8.3.1. Ready-to-eat foods
- 8.3.2. Snacks & confectionery
- 8.3.3. Apparel & accessories
- 8.3.4. Health & beauty
- 8.3.5. Others
- 9. Global Compostable Packaging Market, By Region
- 9.1. Overview
- 9.2. Global Compostable Packaging Market, By Region (2020 - 2034) (USD Million)
- 9.3. Key Findings For Compostable Packaging Market- By Region
- 9.4. Global Compostable Packaging Market, By Material
- 9.5. Global Compostable Packaging Market, By Product
- 9.6. Global Compostable Packaging Market, By End-use Industry
- 9.7. Global Compostable Packaging Market, By Application
- 10. Global Compostable Packaging Market- North America
- 10.1. Overview
- 10.2. North America Compostable Packaging Market (2020 - 2034) (USD Million)
- 10.3. North America Compostable Packaging Market, By Material
- 10.4. North America Compostable Packaging Market, By Product
- 10.5. North America Compostable Packaging Market, By End-use Industry
- 10.6. North America Compostable Packaging Market, By Application
- 10.7. North America Compostable Packaging Market by Country
- 10.7.1. United States
- 10.7.2. Canada
- 11. Global Compostable Packaging Market- Europe
- 11.1. Overview
- 11.2. Europe Compostable Packaging Market (2020 - 2034) (USD Million)
- 11.3. Europe Compostable Packaging Market, By Material
- 11.4. Europe Compostable Packaging Market, By Product
- 11.5. Europe Compostable Packaging Market, By End-use Industry
- 11.6. Europe Compostable Packaging Market, By Application
- 11.7. Europe Compostable Packaging Market by Country
- 11.7.1. Germany
- 11.7.2. UK
- 11.7.3. France
- 11.7.4. Spain
- 11.7.5. Italy
- 11.7.6. Rest of Europe
- 12. Global Compostable Packaging Market - Asia-Pacific
- 12.1. Overview
- 12.2. Asia-Pacific Compostable Packaging Market (2020 - 2034) (USD Million)
- 12.3. Asia-Pacific Compostable Packaging Market, By Material
- 12.4. Asia-Pacific Compostable Packaging Market, By Product
- 12.5. Asia-Pacific Compostable Packaging Market, By End-use Industry
- 12.6. Asia-Pacific Compostable Packaging Market, By Application
- 12.7. Asia-Pacific Compostable Packaging Market by Country
- 12.7.1. China
- 12.7.2. Japan
- 12.7.3. India
- 12.7.4. South Korea
- 12.7.5. Australia
- 12.7.6. Rest of Asia-Pacific
- 13. Global Compostable Packaging Market- Latin America
- 13.1. Overview
- 13.2. Latin America Compostable Packaging Market (2020 - 2034) (USD Million)
- 13.3. Latin America Compostable Packaging Market, By Material
- 13.4. Latin America Compostable Packaging Market, By Product
- 13.5. Latin America Compostable Packaging Market, By End-use Industry
- 13.6. Latin America Compostable Packaging Market, By Application
- 13.7. Latin America Compostable Packaging Market by Country
- 13.7.1. Brazil
- 13.7.2. Mexico
- 13.7.3. Argentina
- 13.7.4. Rest Of Latin America
- 14. Global Compostable Packaging Market- Middle East & Africa
- 14.1. Overview
- 14.2. Middle East & Africa Compostable Packaging Market Size (2020 - 2034) (USD Million)
- 14.3. Middle East & Africa Compostable Packaging Market, By Material
- 14.4. Middle East & Africa Compostable Packaging Market, By Product
- 14.5. Middle East & Africa Compostable Packaging Market, By End-use Industry
- 14.6. Middle East & Africa Compostable Packaging Market, By Application
- 14.7. Middle East & Africa Compostable Packaging Market, By Country
- 14.7.1. Saudi Arabia
- 14.7.2. UAE
- 14.7.3. Israel
- 14.7.4. South Africa
- 14.7.5. Rest of Middle East & Africa
- 15. Global Compostable Packaging Market- Competitive Landscape
- 15.1. Key Competitive Analysis
- 15.2. Key Strategies Adopted by the Leading Players
- 15.3. Global Compostable Packaging Market Competitive Positioning
- 15.3.1. Important Performers
- 15.3.2. Emerging Innovators
- 15.3.3. Market Players with Moderate Innovation
- 16. Global Compostable Packaging Market- Company Profiles
- 16.1. International Paper
- 16.1.1. Corporate Summary
- 16.1.2. Corporate Financial Review
- 16.1.3. Product Portfolio
- 16.1.4. Key Development
- 16.2. Mayr-Melnhof Karton
- 16.3. Amcor
- 16.4. Baroda Rapids
- 16.5. Biopac
- 16.6. Eurocell
- 16.7. Pappco Greenware
- 16.8. Pactiv Evergreen
- 16.9. Futamura Chemical
- 16.10. Genpak
- 16.11. Graphic Packaging Holding
- 16.12. Mondi
- 17. Our Research Methodology
- 17.1. Our Research Practice
- 17.2. Data Source
- 17.2.1. Secondary Source
- 17.2.2. Primary Source
- 17.3. Data Assumption
- 17.4. Analytical Framework for Market Assessment and Forecasting
- 17.5. Our Research Process
- 17.6. Data Validation and Publishing (Secondary Source)
- 18. Appendix
- 18.1. Disclaimer
- 18.2. Contact Us
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