Compostable Plastic Packaging Material Market Research Report By Application (Food Packaging, Beverage Packaging, Healthcare Packaging, Cosmetics Packaging, Industrial Packaging, Agricultural Packaging), By Material (Starch-Based Plastics, Cellulose-Based Plastics, Polylactic Acid (PLA), Biodegradable Polyesters, Others), By End-Use Industry (Food & Beverage Industry, Healthcare Industry, Cosmetics & Personal Care Industry, Automotive Industry, Electronics Industry, Others), By Property (Biodegradability, Compostability, Heat Resistance, Mo

Global Compostable Plastic Packaging Material Market Overview

The Compostable Plastic Packaging Material Market Size was estimated at 41.54 (USD Billion) in 2022. The Compostable Plastic Packaging Material Industry is expected to grow from 46.53(USD Billion) in 2023 to 129.17 (USD Billion) by 2032. The Compostable Plastic Packaging Material Market CAGR (growth rate) is expected to be around 12.01% during the forecast period (2024 - 2032).

Key Compostable Plastic Packaging Material Market Trends Highlighted

The compostable plastic packaging material market continues to expand rapidly, driven by growing consumer awareness of environmental sustainability and the increasing adoption of eco-friendly packaging solutions. Key drivers include the growing demand for sustainable packaging materials, rising consumer preference for biodegradable products, and government regulations promoting the usage of compostable plastics.Opportunities exist in developing innovative compostable plastic materials, exploring applications in various industries, and collaborating with waste management companies to enhance recycling infrastructure. Recent trends include the development of new compostable polymers, such as polylactic acid (PLA) and polyhydroxyalkanoates (PHAs), and the increasing adoption of home composting solutions.By addressing consumers for sustainability, compostable plastic packaging presents significant opportunities for growth in the years to come.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Compostable Plastic Packaging Material Market Drivers

Rising Demand for Sustainable Packaging Solutions

Rise in demand due to environmental concerns The Compostable Plastic Packaging Material Market Industry is expected to witness substantial growth in the coming years as the general population worldwide has become more aware of the adverse effects of routine plastic packaging compounds on the environment. Governments are also devising ways to bring compostable packaging in as the new norm, thereby aiding in the growth of the Compostable Plastic Packaging Material Market Industry.

Advancements in Biodegradable Polymer Technology

Technological advancements have led to the development of innovative biodegradable polymers with enhanced properties. These polymers offer improved barrier properties, printability, and durability, making them suitable for a wide range of packaging applications. Ongoing research and development in biopolymer technology are expected to further expand the capabilities and applications of compostable plastic packaging materials.

Increasing Adoption in the Food and Beverage Industry

The acceleration of applying of compostable plastic packaging in the food and beverage sector is determined by the increasing need for the reduction of food waste and a higher level of sustainability in the supply chain. Such packaging solution offers the opportunity for food preservation when the risks for the environment are minimized and the shelf life of perishable goods is prolonged. The rise of awareness among the general public towards environmental protection ensures a growing demand for compostable packaging in the food and beverage industry.

Compostable Plastic Packaging Material Market Segment Insights

Compostable Plastic Packaging Material Market Application Insights 

The Compostable Plastic Packaging Material Market is classified based on its application into Food Packaging, Beverage Packaging, Healthcare Packaging, Cosmetics Packaging, Industrial Packaging, and Agricultural Packaging. Among these segments, Food Packaging is expected to lead the market share in 2023. This can be attributed to the increasing demand for such packaging in the Food and Beverage industry. In addition to this, across the globe, there has been growing awareness with regard to protecting the environment. For instance, currently, the packaging industry across the globe is focusing on how to develop materials that can be recycled and that are decomposable.The second segment, which is expected to increase significantly during the study period, is Beverage Packaging. The main reason for this is the increase in the demand for the consumer-friendly type of packaging in the Beverage Industry. The third segment, which will increase moderately, is the Healthcare Packaging segment. This will be due to the government regulation, which is stringent when dealing with healthcare packing, as well as the increase in the awareness of environmental issues in this industry. The expected growth rate for the Cosmetics Packaging segment is high even though it does not have the highest market share.The reason for this is that there is an increase in cosmetics awareness, which has led to a lot of consumers taking these products. The growth of the Industrial Packaging segment is expected to be moderate, as there is a current rise in the use of Compostable Packaging Materials across many industries. The Agricultural Packaging segment shall grow moderately due to the increase in demand for such packaging materials in the Agricultural Sector.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Compostable Plastic Packaging Material Market Material Insights 

The Material segment of the Compostable Plastic Packaging Material Market is under the sub-categorized of Starch-Based Plastics, Cellulose-Based Plastics, Polylactic Acid (PLA), Biodegradable Polyesters, and Others. In 2023, Starch-Based Plastics held the largest market share because of their low cost and biodegradability. They are used for the production of disposable tableware, packaging films, shopping bags, etc. Cellulose-Based Plastics are having significant growth in the market because of their high strength and resistance to moisture.It can be used for the packaging of food and beverages. Polylactic Acid is a biodegradable and compostable material, and it is a thermoplastic polymer, which is made from sugar or starch. It is produced from renewable sources and is used for food packaging, disposable cutlery, medical packaging, etc. Biodegradable Polyesters are used for the production of packaging films, bottles, and containers. Polybutylene succinate and Polyhydroxyalkanoates are biodegradable polyesters, and they have very high biodegradability. The Others material segment includes a wide range of materials, such as paper, bamboo, seaweed, and so on.These materials have some prominence in the market because they are sustainable and eco-friendly.

Compostable Plastic Packaging Material Market End-Use Industry Insights 

End-Use Industry The end-use industry segment holds significant importance in the Compostable Plastic Packaging Material Market. The industry comprises various sectors that utilize compostable plastic packaging materials for their products and services. Among the key end-use industries are: Food Beverage Industry: This industry segment accounts for a notable share of the market, driven by the growing demand for sustainable packaging solutions in food and beverage applications. Compostable plastics are increasingly used for packaging fresh produce, bakery goods, and beverages, contributing to the reduction of plastic waste in landfills.Healthcare Industry: The healthcare industry is another prominent end-use sector for compostable plastics. Medical devices, pharmaceutical products, and healthcare supplies are often packaged in compostable materials to ensure sterility and environmental safety. The biodegradable nature of these materials aligns with the industry's focus on responsible waste management. Cosmetics Personal Care Industry: Compostable plastic packaging is gaining traction in the cosmetics and personal care industry as consumers become more eco-conscious. Brands are adopting sustainable packaging solutions for products such as shampoos, conditioners, and skincare items, reducing their environmental footprint.Automotive Industry: The automotive industry utilizes compostable plastics for various applications, including interior components, seat covers, and floor mats. These materials offer lightweight and durable alternatives to traditional plastics, contributing to fuel efficiency and reduced emissions. Electronics Industry: The electronics industry is another end-use sector that benefits from compostable plastics. Electronics packaging, such as protective films and cushioning materials, can be made from biodegradable materials, minimizing e-waste and promoting responsible disposal practices.Others: Other end-use industries include agriculture, construction, and retail. Compostable plastics find applications in agricultural films, building materials, and retail packaging, further expanding the market reach and supporting the shift towards sustainable packaging solutions. .

Compostable Plastic Packaging Material Market Property Insights 

The Compostable Plastic Packaging Material Market is segmented by property into biodegradability, compostability, heat resistance, moisture resistance, transparency, and strength. The biodegradability segment is expected to account for the largest revenue share during the forecast period, owing to the growing demand for environmentally sustainable packaging solutions. The compostability segment is also expected to witness significant growth, driven by regulations and consumer preferences for eco-friendly packaging. The heat resistance segment is expected to grow due to the increasing demand for packaging materials that can withstand high temperatures during transportation and storage.The moisture resistance segment is expected to grow due to the rising demand for packaging materials that can protect products from moisture and humidity. The transparency segment is expected to grow due to the demand for packaging materials that provide clear visibility of the product. The strength segment is expected to grow due to the increasing demand for durable and puncture-resistant packaging materials. Overall, the segmentation of the Compostable Plastic Packaging Material Market provides insights into the specific needs and preferences of various end-use industries and helps market participants develop targeted marketing strategies.

Compostable Plastic Packaging Material Market Package Type Insights 

The Compostable Plastic Packaging Material Market has been segmented by Package Type into Flexible Packaging, Rigid Packaging, Semi-Rigid Packaging, Custom Packaging, and Others. Among these segments, Flexible Packaging held the largest market share of around 35% in 2023. The growth of this segment can be attributed to the increasing demand for flexible packaging solutions from various end-use industries such as food beverages, personal care, and healthcare. Moreover, the rising adoption of compostable films and coatings for flexible packaging is further driving the growth of this segment.Rigid Packaging is another significant segment in the Compostable Plastic Packaging Material Market, accounting for a market share of around 28% in 2023. The growth of this segment is primarily driven by the increasing demand for compostable rigid packaging solutions from the food beverages industry. Semi-Rigid Packaging is expected to witness a steady growth rate during the forecast period, owing to its increasing adoption in various end-use industries such as food beverages, cosmetics, and pharmaceuticals. Custom Packaging and Others are also expected to contribute to the growth of the Compostable Plastic Packaging Material Market in the coming years.

Compostable Plastic Packaging Material Market Regional Insights 

The regional segmentation of the Compostable Plastic Packaging Material Market provides insights into the market's geographic distribution and performance across different regions. North America is anticipated to lead the market with a significant share due to growing environmental concerns, government regulations, and consumer demand for sustainable packaging solutions. Europe is expected to follow closely, driven by stringent environmental regulations and a focus on reducing plastic waste. The Asia-Pacific region is projected to witness substantial growth due to rising awareness about environmental issues and increasing disposable income.South America and the Middle East and Africa (MEA) are anticipated to experience steady growth, driven by growing urbanization and expanding consumer markets.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Compostable Plastic Packaging Material Market Key Players And Competitive Insights

Compostable packaging materials are developed by the major players in the industry who continue developing new products while innovating on the already existing ones. The Key players in the Compostable Plastic Packaging Material Market are currently investing in the expansion of their research and development department to ensure that the performance of their materials and the cost of production of the packaging materials are catered for. The Compostable Plastic Packaging Material Market growth is attributed to the expansion of the companies’ awareness about the sustainability of the environment that has been and is being greatly affected by the use of traditional plastic packaging materials. The Compostable Plastic Packaging Material Market Competitive Landscape is expected to stay highly competitive as more firms continue entering the market.

A leading firm in the Compostable Plastic Packaging Material Market is NatureWorks. The company developed Ingeo, a family of biopolymers that are derived from renewable plant materials. Its Ingeo material is used as compostable packaging material for such items as food products, agricultural films, and beverage containers, among many others. The firm has base operations in the US and Europe with other facilities in Asia. They have set aside a huge budget to expand the research and development department to ensure that they work on the innovation of their products in a bid to improve the material’s cost and effectiveness.

The other company in the Compostable Plastic Packaging Material Market is Biosphere Plastic. The company is a producer of PHA, a biopolymer used in the manufacturing of compostable shopping bags, garbage bags, mulch films, food packaging materials, and beverage containers, among other materials. PHA is a biopolymer that is produced by bacteria through the fermentation of sugar or lipids derived from renewable sources. The firm has a strong base in Europe where it continues to spread its wings in the wider market.

Key Companies in the Compostable Plastic Packaging Material Market Include

• Renewlogy


• Plantic Technologies


• Avery Dennison


• Futamura Chemical


• EREMA


• BIOTEC


• Novamont


• Biocorp


• BASF


• PlastchimT


• TIPA


• Biosphere Industries


• NatureWorks


• Greatview Aseptic Packaging


• Texplast

Compostable Plastic Packaging Material Market Industry Developments

The compostable plastic packaging material market is projected to reach USD 129.17 billion by 2032, exhibiting a CAGR of 12.01% during the forecast period 2024-2032. Rising environmental concerns and increasing demand for sustainable packaging solutions are driving the market growth. Government initiatives and regulations promoting the adoption of compostable plastics are further fueling market expansion. Key industry players are investing in research and development to enhance the performance and functionality of compostable packaging materials. Recent advancements include the development of bio-based and biodegradable polymers with improved barrier properties and printability. Partnerships and collaborations among stakeholders are also shaping the market landscape, fostering innovation and market penetration.

Compostable Plastic Packaging Material Market Segmentation Insights 

Compostable Plastic Packaging Material Market Application Outlook

• Food Packaging


• Beverage Packaging


• Healthcare Packaging


• Cosmetics Packaging


• Industrial Packaging


• Agricultural Packaging

Compostable Plastic Packaging Material Market Material Outlook

• Starch-Based Plastics


• Cellulose-Based Plastics


• Polylactic Acid (PLA)


• Biodegradable Polyesters


• Others

Compostable Plastic Packaging Material Market End-Use Industry Outlook

• Food Beverage Industry


• Healthcare Industry


• Cosmetics Personal Care Industry


• Automotive Industry


• Electronics Industry


• Others

Compostable Plastic Packaging Material Market Property Outlook

• Biodegradability


• Compostability


• Heat Resistance


• Moisture Resistance


• Transparency


• Strength

Compostable Plastic Packaging Material Market Package Type Outlook

• Flexible Packaging


• Rigid Packaging


• Semi-Rigid Packaging


• Custom Packaging


• Others

Compostable Plastic Packaging Material Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa