Compostable Foodservice Packaging Market is Growing at a Strong CAGR of 4.5% by 2035 | FMI

The global compostable foodservice packaging market is poised for significant expansion, with projections estimating its value to grow from USD 19,765.5 million in 2025 to USD 30,695.5 million by 2035. With an expected CAGR of 4.5% during the forecast period (2025-2035), the industry is witnessing increasing momentum driven by sustainability initiatives, consumer awareness, and stringent regulations promoting eco-friendly alternatives.

Compostable foodservice packaging has gained significant traction as businesses and consumers alike shift toward environmentally sustainable packaging solutions. These packaging solutions, made from biodegradable materials such as cornstarch, sugarcane bagasse, and plant-based fibers, are designed to break down into natural elements in composting environments, reducing landfill waste and carbon footprints.

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Revenue generated from compostable foodservice packaging reached USD 18,914.5 million in 2024, setting the stage for continued growth in the coming decade. As consumer preferences evolve and governments push for stricter environmental regulations, demand for these sustainable packaging alternatives is expected to surge across multiple sectors, including restaurants, catering services, and takeaway food businesses.

Demand Drivers and Emerging Trends

The rapid expansion of the compostable foodservice packaging market is fueled by several key factors:

1. Growing Environmental Concerns: Rising awareness of plastic pollution and its harmful impact on marine and terrestrial ecosystems has significantly increased demand for compostable packaging solutions.
2. Government Regulations and Bans on Single-Use Plastics: Many governments worldwide have introduced bans on non-biodegradable plastics, encouraging the adoption of eco-friendly alternatives.
3. Corporate Sustainability Initiatives: Leading food and beverage brands, as well as quick-service restaurant chains, are investing heavily in sustainable packaging to meet consumer expectations and corporate social responsibility goals.
4. Consumer Preference for Green Packaging: Eco-conscious consumers are actively seeking brands that use sustainable and biodegradable packaging, influencing industry standards and business strategies.
5. Technological Advancements in Packaging Materials: Innovation in bio-based packaging solutions, including improvements in durability, heat resistance, and compostability, has enhanced the viability of compostable foodservice packaging.

The Eco-Friendly Revolution of Compostable Bags

Compostable bags represent a sustainable breakthrough in waste management, offering an environmentally responsible alternative to traditional plastic bags. Made from natural plant starch and other renewable resources, these bags break down efficiently in composting systems through microbial activity, leaving no toxic residue behind. Their ability to decompose into nutrient-rich compost makes them an ideal choice for households, businesses, and eco-conscious events striving to reduce plastic waste.

Key Takeaways From the Compostable Foodservice Packaging Market

• The global compostable foodservice packaging market recorded a CAGR of 2.6% from 2020 to 2024.
• The market experienced positive growth, reaching USD 18,914.5 million in 2024.
• The USA is projected to grow at a CAGR of 3.4% through 2035.
• Spain is expected to witness a CAGR of 4.1% in the European market by 2035.
• Paper and paperboard materials are estimated to hold a 42.8% market share by 2025.
• Plates are expected to dominate the market, capturing over 36.4% share by 2025.

Competitive Landscape

Key players in the global compostable foodservice packaging industry are developing and introducing new products to the market. They are combining with various organizations and expanding their geographical reach. A few of them collaborate and cooperate with local businesses and start-up companies.

Key Developments in Compostable Foodservice Packaging Market:

• In January 2024, Sabert Corporation introduced new Pulp Hinged Containers and Pulp Portion Cups, combining versatility, durability, and sustainability for takeout and delivery services. These products are made with PFAS-free pulp and are commercially compostable.
• In March 2024, IMEX Vision launched Adama, a suite of fully sustainable paper cups for hot and cold beverages, using APP Group's Foopak Bio Natura base-paper. The cups are PFAS-free, curb-side recyclable, and comply with composting standards.

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Key Players in Compostable Foodservice Packaging Market

• Huhtamaki Oyj
• Stora Enso Oyj
• Georgia-Pacific LLC
• WestRock Company
• Mondi Group
• Smurfit Kappa Group plc
• Vegware Ltd.
• Ultra Green Packaging Inc.
• Verterra Dinnerware Private Limited
• Biopac Ltd.
• Eco-Products, Inc.
• Sabert Corporation
• Fabri-Kal

Global Compostable Foodservice Packaging Market Segmentation

By Packaging Type:

The compostable foodservice packaging market is categorized based on packaging type into plates, trays, bowls, cups, clamshells, cutlery, pouches & sachets, and others, including wraps, straws, and cup carriers.

By Material Type:

The market is segmented by material type into plastic, paper & paperboard, and bagasse & seaweed. The plastic segment includes PLA, PHA, PBS, PBAT, starch blends, and other plastics. The paper & paperboard segment is further divided into coated unbleached, molded fiber, and other grades.

By End Use:

The end-use market includes chain restaurants, non-chain restaurants, chain cafes, non-chain cafes, delivery catering, independent sellers/kiosks, and others, including FMCG, hotels, and retailers.

By Region:

Key Countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe and Middle East & Africa are covered.

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