Compostable Plastic Packaging Market Size was valued at USD 1.8 Billion in 2022. The Compostable Plastic Packaging industry is projected to grow from USD 1.89 Billion in 2023 to USD 2.91 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.50% during the forecast period (2023 - 2032). Growing consumer awareness and environmental concerns are the key market drivers boosting market growth.
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Source: 
Secondary Research, Primary Research, MRFR Database and Analyst Review
Significant developments in compostable plastic packaging have been fueled by shifting regulations and rising environmental awareness. The growing use of compostable plastic packaging by food and beverage firms is one noteworthy trend. Compostable alternatives are replacing standard plastic in brand offerings as consumers look for environmentally friendly and sustainable options. The increasing use of compostable containers, silverware, and bags in restaurants and grocery shops is indicative of this change. Compostable packaging is preferred because it contributes to the worldwide movement to lessen plastic pollution, promote ethical waste management, and boost Market CAGR.
In the e-commerce industry, compostable plastic packaging is likewise becoming more and more popular. An increasing number of people are buying online, which has increased demand for environmentally friendly packaging options that are simple to dispose of. Growing numbers of shipping materials and mailing bags are compostable, satisfying the needs of ecologically concerned customers and companies. The growing consciousness of the carbon footprint linked to transportation and packaging is supporting this trend even more, encouraging businesses to choose compostable substitutes in order to lessen their environmental effect.
The market is being shaped by advancements in material technology as well as the use of compostable packaging. New blends and bioplastics that are both compostable and preserve the required durability and shelf life for a range of items are being developed by manufacturers. These developments are essential to extending the usage of compostable plastic beyond single-use products to include robust packaging options for products with longer shelf lives. We should anticipate the development of even more adaptable and environmentally friendly compostable plastic materials as research and development activities continue.
Initiatives for consumer education and labeling are crucial to the market for compostable plastic packaging. There are still many people who need to be made aware of the distinctions between conventional plastics and their compostable counterparts. Better labeling and educational initiatives are starting to enlighten customers about appropriate disposal techniques and the advantages of compostable packaging. By ensuring that compostable plastics are disposed of properly and boosting customer trust, this trend helps to create a more sustainable and eco-friendly future. Thus propelling the Compostable Plastic Packaging market revenue.
The Compostable Plastic Packaging Market segmentation, based on Material, includes PBAT, PBS, PLA, PHA, Starch Blends, and Others. The market for compostable plastic packaging shows that PLA category is the most significant material category. PLA is environmentally benign since it is made from renewable materials like sugarcane or maize starch. Growing environmental concerns have led to a heightened need for sustainable packaging solutions, which has fueled its dominance. PLA is more widely used in a variety of applications because it has qualities that are comparable to those of traditional polymers. Additionally, customer demand for environmentally friendly products and governmental assistance fuel the expansion of PLA-based compostable plastic packaging.
Figure 1: Compostable Plastic Packaging Market, by Material, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Compostable Plastic Packaging Market segmentation, based on Application, includes Bags, Pouches, Boxes, Bottles, Cups, Trays, Plates and bowls, and Others. Bags make up the biggest portion of the market for compostable plastic packaging. The main factor contributing to their popularity is how frequently people utilize bags for everyday tasks like grocery shopping, takeaway, and other packaging requirements. Compostable bags provide a useful answer as businesses and customers turn towards eco-friendly options as sustainability gets traction. Tight laws and campaigns encouraging the avoidance of single-use plastics increase consumer demand for compostable plastic bags and drive their notable global expansion. Â
The Compostable Plastic Packaging Market segmentation, based on the End-User Industry, includes Food Service, Cosmetics and Personal Care, Homecare, Healthcare, and Others. The food service sector dominates the compostable plastic packaging market. The food industry's increased emphasis on sustainability and eco-friendly methods is what's causing it to overlook. Food service businesses—from eateries to caterers—are using more and more compostable plastic packaging in response to customer demands for environmental responsibility. The food service industry's need for compostable packaging is driven by regulations aimed at minimizing plastic waste and raising environmental consciousness. These factors have contributed to the industry's significant expansion.
By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The market for compostable plastic packaging is largest in Europe due to a combination of factors, including customer preference for eco-friendly products, strict regulations supporting sustainable packaging, and a developed infrastructure for composting and waste management. These elements significantly contribute to the expansion and uptake of compostable plastic packaging in the area. Similarly, the German Compostable Plastic Packaging market held the major market share, and the UK Compostable Plastic Packaging market was the fastest-growing market in the European region.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: COMPOSTABLE PLASTIC PACKAGING MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Asia-Pacific Compostable Plastic Packaging Market is the second-biggest market. The need for compostable packaging is increasing due to the growing food and beverage industry, government activities supporting eco-friendly solutions, growing middle-class demands for sustainable packaging, and rising environmental concerns. These factors are driving growth, especially in emerging economies. Moreover, China’s Compostable Plastic Packaging market held the largest market share, and the Indian Compostable Plastic Packaging market was the fastest-growing market in the Asia-Pacific region.
The North American compostable Plastic Packaging market is the region with the quickest rate of growth. This rise is being driven by a growing number of consumers who are becoming more environmentally concerned, strict government laws, greater knowledge of and adoption of sustainable practices, and proactive business initiatives to reduce plastic waste and promote the use of compostable alternatives.
Leading market players in the fiercely competitive compostable plastic packaging industry are committed to sustainability and innovation. Market participants are undertaking market developments, including Research and development expenditures, mergers, acquisitions, and strategic alliances. To address the varied demands of the sector, companies concentrate on creating environmentally friendly packaging materials, improving compostability, and broadening their product offerings in the Compostable Plastic Packaging industry.
The worldwide packaging industry is driven by a competitive landscape that offers ecologically friendly alternatives to traditional plastics, with a focus on sustainable practices and environmental consciousness in the global Compostable Plastic Packaging industry. Major players in the Compostable Plastic Packaging market, including TIPA LTD (Israel), Riverside Paper Co. Inc. (US), SmartSolve Industries (US), Özsoy Plastik (Turkey), Ultra Green Sustainable Packaging (US), Hosgör Plastik (Turkey), Eurocell S.r.l (UK), Tetra Pak International SA (Switzerland), (US), Kruger Inc. (Canada), Amcor PLC (Switzerland), Mondi (UK), International Paper Company (US), Smurfit Kappa (US), DS Smith (UK), Klabin SA (Brazil), Rengo Co. Ltd (Japan), WestRock Company (US), Stora Enso (Sweden), Bemis manufacturing company (US), Rocktenn (US), BASF SE (Germany), Clearwater Paper Corporation (US).
TIPA Ltd is a prominent provider of compostable packaging solutions on a global scale. The company was established in 2010 with the goal of minimizing plastic waste by providing flexible and entirely compostable packaging options. The product line from TIPA serves a variety of markets, including food, beverage, fashion, e-commerce, and more. It offers compostable plastic packaging for both food and non-food applications, including bags, films, pouches, and zipper bags. Their cutting-edge packaging options replicate the properties of traditional plastics while decomposing naturally in composting settings, supporting the company's objective to transform the packaging sector and advance the circular economy.
SmartSolve Industries is a reputable provider of sustainable and compostable packaging alternatives. The company was founded to solve environmental issues and provide a selection of environmentally friendly packaging products. Compostable plastic bags, films, and other packaging materials derived from sustainable sources are among their products. Composting environments are the ideal setting for SmartSolve's compostable plastic packaging, which minimizes waste and the environmental damage caused by conventional plastics. With a dedication to sustainability and innovation, SmartSolve Industries helps many industries adopt a more environmentally friendly approach to packaging.
Nov 2022: Chocal introduces packaging that is "easily compostable." The Chocal packaging solution is innovative; the materials used to make the packaging are coated, formable papers called Chocal Paper Fibres (CPF) or transparent cellulose materials specifically created by the business Chocal Natural Fibres (CNF).
June 2022: Global beer giant Corona announced the introduction of a new six-pack that is entirely compostable and compostable plastic, and it is created simply of barley straw in India. Reaffirming its greater objective of conserving and preserving nature, Corona has introduced a new circular package design. The new six-pack from Corona that is composed entirely of barley straw is in line with the concept of "Living Sustainably in Harmony with Nature" for World Environment Day, which is "Only One Earth" this year.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 1.8 Billion |
| Market Size 2023 | USD 1.89 Billion |
| Market Size 2032 | USD 2.91 Billion |
| Compound Annual Growth Rate (CAGR) | 5.50% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Material, Application, End-User Industry, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | TIPA LTD (Israel), Riverside Paper Co. Inc. (US), SmartSolve Industries (US), Özsoy Plastik (Turkey), Ultra Green Sustainable Packaging (US), Hosgör Plastik (Turkey), Eurocell S.r.l (UK), Tetra Pak International SA (Switzerland), Kruger Inc. (Canada), Amcor PLC (Switzerland), Mondi (UK), International Paper Company (US), Smurfit Kappa (US), DS Smith (UK), Klabin SA (Brazil), Rengo Co. Ltd (Japan), WestRock Company (US), Stora Enso (Sweden), Bemis manufacturing company (US), Rocktenn (US), BASF SE (Germany), Clearwater Paper Corporation (US) |
| Key Market Opportunities | ·      Expansion of compostable plastic packaging in e-commerce and online retailing |
| Key Market Dynamics | ·      Penetration into the pharmaceutical and healthcare sectors |
Compostable Plastic Packaging Market Highlights:
Frequently Asked Questions (FAQ) :
The Compostable Plastic Packaging Market size was valued at USD 1.8 Billion in 2022.
The global market is projected to grow at a CAGR of 5.50% during the forecast period, 2023-2032.
Europe had the largest share of the global market in 2022.
The key players in the market are TIPA LTD (Israel), Riverside Paper Co. Inc. (US), SmartSolve Industries (US), Özsoy Plastik (Turkey), Ultra Green Sustainable Packaging (US), Hosgör Plastik (Turkey), Eurocell S.r.l (UK), Tetra Pak International SA (Switzerland), Kruger Inc. (Canada), and Amcor PLC (Switzerland).
The PLA category dominated the market in 2022.
The bags had the largest share of the global market.
Assistant Manager - Research High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. by implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in packaging, construction, and equipment domains. she handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.
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