The global compostable packaging market size was valued at USD 74.01 billion in 2023 and is projected to reach USD 113.88 billion by 2030, growing at a CAGR of 6.5% from 2024 to 2030. The market growth is driven by a combination of environmental concerns, regulatory frameworks, consumer preferences, and advancements in material science.
North America dominated the global market in 2023 and accounted for the largest revenue share.
Asia Pacific is expected to register the fastest growth rate during the forecast period.
By material, polylactic acid (PLA) held the largest market share of over 70.0% in 2023.
By product, pouches accounted for more than 33.0% of the global revenue share in 2023.
By end use, the food & beverages segment led the market with the highest revenue contribution in 2023.
2023 Market Size: USD 74.01 Billion
2030 Projected Market Size: USD 113.88 Billion
CAGR (2024–2030): 6.5%
North America: Largest market in 2023
Asia Pacific: Fastest growing market
Government regulations and policies are another significant driver for this market. Many countries and regions are imposing strict regulations on single-use plastics and encouraging the use of compostable alternatives. For instance, the European Union’s Single-Use Plastics Directive has set restrictions on plastic packaging, which has led to increased adoption of compostable packaging. Similarly, cities across the U.S., including New York and San Francisco, have introduced bans on non-compostable plastics, creating a favorable regulatory environment for compostable packaging manufacturers.
Based on material, the market has been segmented into polylactic acid (PLA), cellulose, bamboo, wood, and polyhydroxyalkanoate (PHA). PLA dominated the overall market with a revenue market share of over 70.0% in 2023 and is expected to witness robust growth with a CAGR of 6.6% over the forecast period.
Based on product, the market has been segmented into bags, trays, pouches, films, and others. Pouches dominated the overall market with a revenue market share of over 33.0% in 2023. The increasing demand for convenient and sustainable packaging in the food and beverage industry is driving the adoption of compostable pouches.
Based on the application, the market is segmented into food & beverages, pharmaceuticals, cosmetics, and others. Food & beverages dominated the market and accounted for the largest revenue share of over 46.0% in 2023. This positive outlook is due to the growing demand for sustainable food packaging options, stringent regulations on single-use plastics, and consumer preference for environmentally friendly brands.
Europe dominated the market and accounted for the largest revenue share of over 43.0% in 2023. Europe has emerged as a leader in driving the compostable and packaging market due to a combination of stringent environmental regulations, growing consumer awareness, and government initiatives. The European Union has implemented several directives to reduce plastic waste and promote sustainable alternatives. For instance, the EU Plastics Strategy, adopted in 2018, sets targets for all plastic packaging to be recyclable or reusable by 2030. This has created a strong incentive for businesses and consumers to switch to more environmentally friendly options such as compostable packaging products.
The following are the leading companies in the compostable packaging market. These companies collectively hold the largest market share and dictate industry trends.
TIPA Ltd
Rocktenn
Ultra-Green Sustainable Packaging
Özsoy Plastik
International Paper Company
Mondi
SmartSolve Industries
Tetra Pak International SA
Amcor plc
DS Smith
Klabin SA
WestRock Company
Hosgör Plastik
Smurfit Kappa
Rengo Co. Ltd
Stora Enso
BASF SE
Bemis manufacturing company
Clearwater Paper Corporation
Eurocell S.r.l
This report forecasts volume & revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global compostable packaging market report based on material, product, application, and region
Material Outlook (Volume, Kilotons; Revenue, USD Million, 2018–2030)
Polylactic Acid (PLA)
Cellulose
Bamboo
Wood
Polyhydroxyalkanoate (PHA)
Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018–2030)
Bags
Trays
Pouches
Films
Others
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018–2030)
Food & Beverages
Pharmaceuticals
Cosmetics
Others