Compostable Foodservice Packaging Market Review 2025

The compostable foodservice packaging market has witnessed significant growth in recent years due to a heightened awareness of environmental issues and a shift towards sustainable practices within the food industry. Compostable packaging is designed to decompose naturally and integrate back into the environment, making it an attractive alternative to traditional plastic packaging. As consumers demand more eco-friendly options, businesses are increasingly adopting compostable materials to meet these expectations.

As of 2023, the global compostable foodservice packaging market was valued at approximately USD 5.3 billion, and it is projected to reach around USD 8.1 billion by 2030, growing at a remarkable CAGR of 7.3%. This upward trajectory is driven by a combination of regulatory changes and consumer preferences leaning toward sustainability.

This section provides insights into market share by product type, key players, and trends influencing the compostable foodservice packaging sector.

• Bags: Compostable bags accounted for roughly 30% of the market share in 2023. With businesses seeking to reduce single-use plastics, this segment is expected to grow at a CAGR of 6.5% through 2030.
• Plates: This segment represents around 25% of the market. Its CAGR is anticipated at 7.8% owing to increased use in events and restaurants.
• Bowls: Compostable bowls have gained traction, holding a market share of 15%. Growth in this category is forecasted at 7.0%.
• Cups: Cups currently comprise 20% of the market share, with a growth rate of 8.1% as coffee shops and beverage services adopt compostable options.

The compostable foodservice packaging market is highly competitive and home to several established players. Key companies include:

• Mondi Group
• International Paper
• Amcor
• WestRock
• Smurfit Kappa
• Stora Enso
• Sealed Air
• Duni Group
• Ranpak
• Kruger
• Novolex
• TIPA

The manufacturing process of compostable foodservice packaging can be categorized into several types:

• Bioplastics Production: Continues to be the predominant method, accounting for about 50% of the market.
• Pulp and Paper Processing: Holding around 30% of the market share, this method is gaining popularity for its recyclability.
• Others: Such as thermoplastic starch and polylactic acid processes represent the remaining 20%.

This market can also be segmented based on application, which includes:

• Supermarket: Approximately 35% of the market is derived from supermarket applications, with a growth rate of around 6.4%.
• Household: Household uses make up about 25%, projected to grow at a CAGR of 7.1%.
• Restaurants: Representing 20%, this segment is expanding rapidly at a CAGR of 8.0% due to evolving consumer behavior.
• Caf: Cafs contribute to roughly 20% of market share and are also seeing accelerated growth at 8.5%.

The end-use segmentation shows a diverse landscape where:

• Food and Beverage: Occupying about 60% share, expected to grow at a CAGR of 7.5%.
• Retail: Around 25%, with a growth rate of 6.0% as retailers switch to sustainable packaging solutions.
• Institutional: Approximately 15%, growing at 6.8% due to increasing adoption in educational and healthcare sectors.

Regionally, the compostable foodservice packaging market can be analyzed as follows:

• North America: Dominates with a share of approximately 35%, driven by robust regulations and increased consumer demand.
• Europe: Holds around 30%, led by high environmental awareness and government initiatives on sustainable practices.
• Asia-Pacific: Exhibiting the fastest growth rate at 8.3%, this region is rapidly adopting compostable packaging due to urbanization and increasing foodservice outlets.
• Latin America: Comprising about 15% of the market share, with growth spurred by an increase in eco-friendly regulations.
• Middle East & Africa: Represents roughly 10%, growing steadily as sustainability becomes a priority in both the commercial and domestic sectors.

Recent trends in policy and industry developments impacting the compostable foodservice packaging market include:

• Legislative Initiatives: Several countries have introduced regulations prohibiting single-use plastics, fostering market growth.
• Corporate Commitments: Major corporations are pledging to phase out traditional plastic packaging, increasing their portfolio of compostable products.
• Investment in R&D: Leading companies like Mondi and Amcor are heavily investing in R&D to innovate and improve the efficiency of production processes.

Looking ahead, the compostable foodservice packaging market is expected to continue its upward trend from 2025 to 2030. Key forecasts include:

• Expansion in Product Types: The segments for bags, plates, and cups are anticipated to grow significantly due to increased demand from both consumers and businesses.
• Geographic Growth: The Asia-Pacific region is projected to witness the highest growth, driven by population growth and urbanization.
• Sustainable Innovation: Continuous innovations in biodegradable materials will enhance product offerings and cater to diverse consumer needs.

The compostable foodservice packaging market is poised for substantial growth characterized by evolving consumer preferences and an increasing push for sustainable practices. Key players are expected to leverage technological advancements and innovative materials to stay competitive in this increasingly crowded marketplace. As regulations continue to evolve and consumer awareness rises, 2025 and beyond will likely see a robust shift towards compostable solutions in foodservice packaging.