Compostable Plastic Packaging Material Market Forecasts to 2030 – Global Analysis By Material (Polylactic Acid (PLA), Starch Blends, Polybutylene Succinate (PBS), Polyhydroxyalkanoates (PHA), Cellulose-Based and Other Materials), Application, End User and

Compostable Plastic Packaging Material Market Forecasts to 2030 – Global Analysis By Material (Polylactic Acid (PLA), Starch Blends, Polybutylene Succinate (PBS), Polyhydroxyalkanoates (PHA), Cellulose-Based and Other Materials), Application, End User and By Geography

According to Stratistics MRC, the Global Compostable Plastic Packaging Material Market is accounted for $2.02 billion in 2024 and is expected to reach $3.07 billion by 2030 growing at a CAGR of 7.2% during the forecast period. Compostable plastic packaging material refers to plastics made from natural, renewable sources that can decompose into non-toxic, natural elements under composting conditions. Unlike traditional plastics, compostable plastics break down fully within a specific timeframe in industrial composting facilities, returning nutrients to the soil without leaving harmful residues. Designed to reduce plastic waste, compostable packaging is used in applications such as food containers and bags, aligning with sustainability goals and minimizing environmental impact.

Market Dynamics:

Driver:

Increasing environmental awareness

Increasing environmental awareness about the harmful effects of plastic pollution on ecosystems, the consumers increasingly prefer sustainable packaging alternatives. This shift places pressure on companies to adopt eco-friendly materials like compostable plastics to meet consumer expectations. By choosing compostable options, brands align with global sustainability goals, as these materials decompose into non-toxic substances. Environmentally conscious consumers are also more loyal to brands committed to reducing plastic waste, driving companies to invest in innovative, sustainable packaging solutions.

Restraint:

Limited industrial composting infrastructure

Compostable plastics often require high temperatures, specific humidity levels, and controlled microbial conditions that only industrial composting facilities provide. Without adequate infrastructure, most compostable packaging ends up in regular landfills, where it doesn’t degrade as intended, potentially contributing to pollution. The scarcity of these facilities also means that compostable packaging may not reach its full environmental benefit. Additionally, transporting compostable waste to distant industrial facilities can be costly and impractical, reducing the feasibility of using compostable materials on a large scale. Ultimately, limited infrastructure creates a bottleneck, slowing down broader adoption and effective usage of compostable plastics in everyday packaging.

Opportunity:

Innovation in biodegradable materials

Developments in biopolymers, such as polyhydroxyalkanoates (PHAs) and polylactic acid (PLA), allow compostable plastics to perform similarly to traditional plastics while being eco-friendly. These advancements also help reduce production costs, making compostable options more affordable for manufacturers and consumers. Moreover, as biodegradable materials improve, they meet the demand for sustainable packaging that adheres to regulatory standards. This shift supports the replacement of conventional plastics with compostable alternatives, aligning with growing environmental goals and consumer expectations for sustainable solutions.

Threat:

Competition from recyclable and biodegradable plastics

Recyclable plastics are often less costly and have established recycling systems, making them more accessible for businesses and consumers. Biodegradable plastics, while necessarily compostable, can degrade under broader conditions, making them appealing to consumers seeking convenient disposal options. Compostable plastics, on the other hand, need specific conditions for proper degradation, which limits their practicality in regions without adequate composting infrastructure. Additionally, recyclable and biodegradable options often have greater durability and functionality, which can be preferable in various packaging applications. This competition pressures compostable plastic manufacturers to innovate and reduce costs to stay relevant in the sustainable packaging market.

Covid-19 Impact

The COVID-19 pandemic had a mixed impact on the compostable plastic packaging material market. On one hand, the heightened demand for single-use packaging in food delivery and takeout increased the reliance on compostable alternatives as consumers and businesses sought more sustainable options. On the other hand, disruptions in manufacturing, supply chains, and raw material availability slowed production. Additionally, economic uncertainty led some businesses to prioritize cost-effective packaging, delaying broader adoption of compostable plastics in the short term.

The starch blends segment is expected to be the largest during the forecast period

The starch blends segment is projected to account for the largest market share during the projection period, due to by offering an eco-friendly alternative to traditional plastics. Starch-based plastics, often made from renewable resources like corn or potatoes, are biodegradable and compostable, appealing to environmentally conscious consumers and businesses. Their ability to break down quickly in industrial composting environments enhances their appeal for sustainable packaging solutions. Additionally, starch blends are cost-effective, abundant, and versatile, making them suitable for various packaging applications. Their increasing use aligns with growing regulations and consumer demand for sustainable, biodegradable packaging options.

The homecare segment is expected to have the highest CAGR during the forecast period

The homecare segment is projected to have the highest CAGR in the XX market during the extrapolated period, due to available eco-friendly alternatives for cleaning and personal care products. With a growing focus on sustainability, brands in the homecare sector are shifting toward compostable packaging to meet consumer preferences for environmentally responsible products. Compostable materials offer a solution to reduce plastic waste in packaging for items like detergents, wipes, and personal hygiene products. As sustainability becomes a key selling point, homecare brands adopting compostable plastics contribute to the overall expansion of the eco-friendly packaging market.

Region with largest share:

The Asia Pacific region is projected to account for the largest market share during the forecast period due to increased environmental awareness and supportive government initiatives promoting sustainable packaging. With a rising focus on reducing plastic waste, consumers and businesses in countries like Japan, China, and India are increasingly adopting compostable materials. The region's strong manufacturing base, along with innovations in bio-plastic technology, is accelerating the availability of cost-effective compostable packaging solutions. Additionally, rapid urbanization, the growth of e-commerce, and the shift toward green packaging further drive market expansion in Asia Pacific.

Region with highest CAGR:

During the estimation period, the North America region is forecasted to record the highest growth rate, owing to sustainable and eco-friendly packaging solutions. Strong environmental awareness, supported by government regulations and corporate sustainability goals, is driving the adoption of compostable materials in industries such as food, beverage, and homecare. Major companies are investing in research and development to improve the performance of compostable plastics, and innovations in bio-plastics are further enhancing market prospects. Additionally, North America's well-established infrastructure for recycling and waste management supports the adoption of compostable packaging solutions.

Key players in the market

Some of the key players profiled in the Compostable Plastic Packaging Material Market include Novamont S.p.A., BASF SE, NatureWorks LLC, Mondi Group, Tetra Pak International S.A., Danimer Scientific, Smurfit Kappa Group, Cargill, Incorporated, Plantic Technologies Limited, TIPA Corp Ltd., TotalEnergies Corbion, Biome Bioplastics, Good Natured Products Inc., Amcor Plc, Clondalkin Group Holdings B.V., Futamura Chemical Co., Ltd., Eastman Chemical Company, Huhtamaki Oyj, WestRock Company and Sekisui Chemical Co., Ltd.

Key Developments:

In October 2024, BASF made a strategic partnership with Aspen Aerogels to enhance its aerogel product offerings and expand its market reach. This partnership is set to drive innovation in aerogel technologies, particularly in high-performance insulation materials.

In April 2024, BASF successfully commissioned a pilot plant dedicated to producing SLENTITE®, a cutting-edge polyurethane-based aerogel insulation panel. This innovative product is designed to meet the increasing demand for efficient thermal insulation in construction, offering a unique combination of lightweight characteristics and mechanical strength.

Materials Covered:
• Polylactic Acid (PLA)
• Starch Blends
• Polybutylene Succinate (PBS)
• Polyhydroxyalkanoates (PHA)
• Cellulose-Based
• Polybutylene Adipate Terephthalate (PBAT)
• Other Materials

Applications Covered:
• Bags
• Pouches
• Boxes
• Bottles
• Cups
• Trays
• Plates & Bowls
• Other Applications

End Users Covered:
• Food Service
• Beverage
• Cosmetics & Personal Care
• Homecare
• Healthcare
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements