Compostable & Biodegradable Refuse Bags

Global Compostable & Biodegradable Refuse Bags Market to Reach US$567.0 Million by 2030

The global market for Compostable & Biodegradable Refuse Bags estimated at US$388.2 Million in the year 2024, is expected to reach US$567.0 Million by 2030, growing at a CAGR of 6.5% over the analysis period 2024-2030. Polylactic Acid, one of the segments analyzed in the report, is expected to record a 7.2% CAGR and reach US$290.9 Million by the end of the analysis period. Growth in the Polyhydroxyalkanoate segment is estimated at 6.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$105.8 Million While China is Forecast to Grow at 10.3% CAGR

The Compostable & Biodegradable Refuse Bags market in the U.S. is estimated at US$105.8 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$117.7 Million by the year 2030 trailing a CAGR of 10.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.2% and 6.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.3% CAGR.

Global Compostable & Biodegradable Refuse Bags Market – Key Trends & Drivers Summarized

Why Is the Demand for Compostable & Biodegradable Refuse Bags Increasing?

The rising awareness of environmental sustainability and the growing concerns over plastic pollution have significantly driven the demand for compostable and biodegradable refuse bags. Traditional plastic waste contributes heavily to landfill overflow, marine pollution, and long-term environmental degradation, leading governments, businesses, and consumers to seek sustainable alternatives. Compostable and biodegradable refuse bags, made from materials such as cornstarch, polylactic acid, and biodegradable polymers, offer an eco-friendly solution to waste disposal without leaving behind harmful microplastics. The enforcement of stringent regulations banning single-use plastics in several countries has accelerated the shift toward biodegradable alternatives. Many governments have introduced policies mandating the use of compostable bags for waste collection, particularly in regions with well-developed composting and waste management infrastructure. Additionally, the increased adoption of home and municipal composting programs has further bolstered the demand for these eco-friendly refuse bags, as they facilitate organic waste disposal without contaminating compostable material streams. Consumer behavior has also played a critical role in market expansion. As people become more environmentally conscious, there is a growing preference for sustainable household products, including biodegradable waste bags. Retailers and supermarkets are responding to this trend by offering compostable refuse bags as part of their sustainable product lines, reinforcing consumer choices and making eco-friendly options more accessible. The increasing influence of corporate social responsibility initiatives has further driven businesses and institutions to replace conventional plastic waste bags with biodegradable alternatives, strengthening market growth.

How Are Material Innovations Enhancing the Effectiveness of Biodegradable Refuse Bags?

Significant advancements in material science have improved the durability, decomposition rate, and functionality of compostable and biodegradable refuse bags. Early biodegradable plastics often suffered from poor strength and slow degradation under certain environmental conditions, limiting their adoption. However, new formulations incorporating plant-based biopolymers, enzyme-based additives, and nanotechnology-enhanced materials have resulted in bags that maintain high performance while breaking down efficiently in composting environments. One of the most impactful innovations is the development of home-compostable refuse bags, which can degrade naturally in residential compost bins without requiring industrial composting facilities. These bags are gaining popularity among environmentally conscious consumers who compost food waste at home, contributing to reduced landfill dependency and promoting circular waste management practices. Additionally, research into marine-degradable bioplastics is gaining traction, aiming to address the issue of plastic waste entering oceans and causing harm to marine ecosystems. The use of multi-layer biodegradable films has also improved the moisture and tear resistance of compostable bags, allowing them to handle heavier loads without compromising their decomposition properties. This is particularly beneficial for commercial waste collection in restaurants, food processing industries, and municipal organic waste programs, where durability is a key factor. Moreover, manufacturers are increasingly focusing on customized compostability rates, ensuring that refuse bags break down within specific time frames to align with industrial composting cycles and landfill reduction goals.

What Market Trends Are Shaping the Growth of Compostable & Biodegradable Refuse Bags?

The rising focus on circular economy principles and waste reduction policies is a key trend influencing the compostable and biodegradable refuse bags market. Governments, municipalities, and private organizations are working together to implement waste segregation programs that prioritize compostable materials, creating a direct need for biodegradable waste collection solutions. The establishment of bio-waste treatment facilities, composting plants, and anaerobic digestion units is further enhancing the adoption of these refuse bags by ensuring a well-structured end-of-life disposal process. The increasing role of retail and e-commerce in sustainability is another factor propelling market demand. Major online and brick-and-mortar retailers are prioritizing sustainable product offerings, with biodegradable waste bags becoming a staple in grocery aisles and online eco-friendly product categories. Subscription-based home delivery services for compostable products have gained traction, making it easier for consumers to access and regularly replenish their supply of biodegradable refuse bags. Additionally, businesses in the hospitality and food service sectors are integrating compostable waste bags into their sustainability strategies, aligning with corporate goals of reducing plastic waste and improving environmental impact. The cost competitiveness of biodegradable refuse bags is improving, thanks to economies of scale and increased investment in bioplastics manufacturing. Initially, the high production costs of compostable materials posed a challenge to market penetration. However, with technological advancements and increased production capacities, prices have gradually declined, making these eco-friendly alternatives more affordable for both businesses and households. The expansion of government subsidies and tax incentives for biodegradable packaging manufacturers has further contributed to price stabilization, encouraging widespread adoption.

What Are the Key Growth Drivers Fueling the Market?

The growth in the compostable and biodegradable refuse bags market is driven by several factors, including regulatory enforcement, material innovations, consumer preferences, and expanding waste management infrastructure. One of the most significant drivers is the global ban on single-use plastics, which has compelled businesses and municipalities to adopt biodegradable alternatives for waste collection and disposal. Countries in Europe, North America, and Asia-Pacific have implemented strict legislation mandating compostable waste bags for organic waste collection, driving demand across multiple industries. The expanding network of municipal composting programs is another key growth factor. Cities and towns worldwide are developing composting facilities that require compatible waste collection solutions, increasing the need for compostable refuse bags. As governments continue to invest in composting infrastructure and public awareness campaigns, the market is expected to witness sustained demand from both residential and commercial sectors. The rising consumer shift toward sustainable lifestyles is also influencing market growth. Environmentally conscious consumers are actively seeking biodegradable alternatives to plastic waste bags, with many willing to pay a premium for sustainable products. This shift has prompted manufacturers to enhance their marketing strategies, focusing on eco-certifications, compostability labels, and product transparency to build consumer trust and loyalty. Additionally, the integration of bioplastics in manufacturing is making biodegradable refuse bags more accessible and functional. The development of starch-based polymers, polylactic acid blends, and bio-based polyesters has resulted in products that meet durability requirements while aligning with global sustainability goals. These innovations, coupled with increasing investments in sustainable packaging research, are expected to further drive market expansion in the coming years.

With these factors collectively shaping the compostable and biodegradable refuse bags market, the industry is poised for continued growth, supported by technological advancements, evolving consumer preferences, and global initiatives to reduce plastic waste and promote sustainable waste management solutions.

SCOPE OF STUDY:

The report analyzes the Compostable & Biodegradable Refuse Bags market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Material (Polylactic Acid, Polyhydroxyalkanoate, Polybutylene Adipate Terephthalate, Polybutylene Succinate, Other Materials); Capacity (7 to 20 Gallons Capacity, 20 to 30 Gallons Capacity, 30 to 40 Gallons Capacity, 40 to 55 Gallons Capacity, Above 55 Gallons Capacity); Application (Retail and Consumer Application, Industrial Application, Institutional Application)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 48 Featured) -

• Ams Global Suppliers Group
• Avenco LTD
• BioBag International AS
• Biobag World
• Biocup
• Biodegradable Products Institute
• Biosphere Corporation
• EcoSafe Zero Waste Inc.
• ExoPackaging
• Footprint
• Green Man Packaging
• Green Paper Products
• GreenSavers
• Leadpacks Packing Co., Ltd.
• Mimex Inc.
• Natur-Tec®
• Plastic Free Co.
• Rovi Packaging, SA
• SC Johnson Professional
• Smile Plastics

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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