Press release
Compostable Packaging Materials Market to Grow USD 2.53 Bn by 2030 at 4.3 % CAGR
Compostable Packaging Materials Market
Higher demand is emerging in regions driven by stringent plastic regulations, rising sustainability awareness, and packaging innovation.
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United States Growth
North America is a key market, supported by bans on single-use plastics and increasing composting infrastructure.
Trends & Opportunity: U.S. cities such as San Francisco, New York, and Portland have mandated compostable alternatives, boosting uptake.
Consolidation & Updation: BASF SE and Novamont are expanding U.S. operations; NatureWorks LLC recently ramped up PLA production capacity in Nebraska to meet growing demand.
Europe Opportunity
Europe leads globally with the highest market share in 2023.
Trends: EU-wide directives (SUP Directive, Green Deal) are fueling adoption of compostable paper and plastic alternatives.
Consolidation & Updation: Novamont SpA and TIPA-corp Ltd. formed a partnership in 2024 to co-develop PLA-film solutions. Smurfit Kappa launched a compostable pouch range tailored to EU food and cosmetics brands in early 2025.
Asia-Pacific Trends
APAC is the fastest-growing region, propelled by urbanization and environmental regulations.
Opportunity & Trends: China, India, Japan, and Southeast Asia are adopting compostable films and bags to curb plastic waste in retail and food service.
Consolidation: BASF SE and NatureWorks expanded joint ventures in China (2024) to build PLA compounding facilities. Mondi Group acquired a Thai compostable paper mill in 2023 to extend its footprint.
Middle East & Africa Consolidation
MEA is tapping into compostable packaging potential amid rising waste management needs.
Trends: Gulf countries are incorporating compostable trays and food-service items in hospitality and retail sectors.
Consolidation & Updation: Regional packaging firms are forging partnerships with global players-Mondi Group partnered with a UAE distributor in 2024 for compostable pouches.
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Key Recent Developments
Global market valued at USD 74.01 Bn in 2023, forecast to USD 113.88 Bn by 2030 at 6.5 % CAGR-suggesting a broader packaging trend.
In Nov 2024, UPM Specialty Papers and Eastman launched biopolymer-covered paper for compostable food packaging in Europe.
Ecovative Design introduced mushroom-based MycoComposite for home-compostable protective packaging in 2025.
Compostable Packaging Materials Market Segmentation:
by Material
Starch-based packing
Compostable Plastics
compostable paper
by Application
Boxes
Bags
Trays
Films
Pouches
by End user sectors
Food & Beverage
Household
Agriculture
Pharmaceuticals
Cosmetics & personal care products
Others
The food and beverage segment is anticipated to have the largest market share among end-user sectors, accounting for the total during the 2024-2030 projection period. Food and beverage companies have pushed for compostable packaging materials to lower greenhouse gas emissions in response to customer concerns about environmentally friendly products and government policies aimed at promoting pollution-free economic growth. Furthermore, the global market for biodegradable packing materials is anticipated to see growth in revenue due to the rising demand for these materials in the home and agricultural sectors.
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Compostable Packaging Materials Market Key Players:
1. Novamont SpA
2. Tipa-corp ltd.
3. BASF SE
4. Innovia Films Limited
5. Biome Bioplastics Limited
6. NatureWorks LLC.
7. Kruger Inc.
8. Mondi Group
9. Biopac
10. Clearwater Paper Corporation
11. Amcor Ltd.
12. Smurfit Kappa Group
13. Tetra Pak International S.A
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