Comprehensive 2025 Compostable Packaging Market Overview: Trends, Forecasts, and Growth Drivers

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What Is the Expected CAGR for the Compostable Packaging Market Through 2025?
In recent times, there has been significant growth in the market size for compostable packaging. The value is expected to rise from $92.56 billion in 2024 to $100.44 billion in 2025 with a compound annual growth rate (CAGR) of 8.5%. The upward trend in the past is linked to the heightened consumer consciousness about environmental matters, regulatory efforts to lessen plastic waste, increased usage of bio-based and renewable feedstocks in packaging materials, the expansion of sustainable and eco-friendly products, and business commitments to sustainability objectives and initiatives.

What's the Projected Size of the Global Compostable Packaging Market by 2029?
The market size for compostable packaging is projected to experience substantial expansion in the coming years, reaching a valuation of $137.26 billion in 2029, with a compound annual growth rate (CAGR) of 8.1%. This anticipated growth over the forecast period is primarily due to heightened regulations surrounding plastic usage and waste control, increased industry demand for eco-friendly packaging solutions, progressive developments in compostable packaging materials, expansion of the food and beverage sector, and growing investment and innovation in circular economy strategies. Key trends for the forecast period involve the growth of composting infrastructure and facilities, incorporating IoT and smart packaging into compostable items, advancements in compostable materials' technology, the use of compostable packaging in the e-commerce and food delivery sectors, and the transition towards multi-layer compostable films for improved functionality and barrier characteristics.

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Top Growth Drivers in the Compostable Packaging Industry: What's Accelerating the Market?
The continued expansion of the food and beverage industry is anticipated to bolster the development of the compostable packaging industry. Encompassing the manufacturing, processing, dispersal, and sale of foodstuffs and beverages for consumption, the food and beverage sector is seeing expansion due to rising global populations, shifts in consumer choices towards healthier, more convenient alternatives, and inventive product growth and distribution channels. The need for compostable packaging in the food and beverage sector is key to reducing plastic pollution, satisfying customer demand for eco-friendly items, and adhering to laws which encourage sustainable behaviours. For example, a report from Statistics Sweden, a Swedish government agency, noted that in September 2022, the revenue from food and beverage sales attained $37.44 billion (SEK 334 billion), due to a 2.9% growth facilitated by a 2.5% escalation in sales volume. Moreover, a moderate 0.4% price hike for food and beverages contributed to this progression. Consequently, the escalating food and beverage sector is fuelling the advancement of the compostable packaging market.

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What Trends Will Shape the Compostable Packaging Market Through 2029 and Beyond?
Leading firms in the compostable packaging industry are concentrating on the innovation of technologically advanced commodities like flexible compostable packaging aids to elevate their packaging solution's functionality and endurance. These are eco-friendly, decomposable materials made to decay organically, mitigating environmental harm while keeping product quality and lifespan intact. For instance, Pakka, a Swiss enterprise specializing in environmentally friendly, compostable packaging solutions, unveiled a fresh series of flexible compostable packaging aids in September 2024, primarily intended for the Fast-Moving Consumer Goods (FMCG) sector. This product line encompasses three exceptional choices meant for the transfer of high-end food items.

What Are the Main Segments in the Compostable Packaging Market?
The compostable packaging market covered in this report is segmented -

1) By Material: Polylactic Acid (PLA), Wheat Straw Fiber, Talc-Filled Polylactic Acid (TPLA) And Crystallized Polylactic Acid (CPLA), Cellulose, Bamboo, Polyhydroxyalkanoate (PHA), Other Materials
2) By Application: Bags, Pouches, Trays, Tapes, Mailer Bags, Films, Clamshells
3) By End Use: Food And Beverages, Pharmaceuticals, Personal Care And Cosmetics, Other End Uses

Subsegments:
1) By Polylactic Acid (PLA): PLA-Based Films, PLA-Coated Papers, PLA Containers and Trays
2) By Wheat Straw Fiber: Wheat Straw Paper and Board, Wheat Straw-Based Molded Packaging
3) By Talc-Filled Polylactic Acid (TPLA) and Crystallized Polylactic Acid (CPLA): TPLA-Based Packaging, CPLA-Based Cutlery, Cups, and Containers
4) By Cellulose: Cellulose Films, Cellulose-Based Wraps and Containers, Cellulose Fiber Packaging
5) By Bamboo: Bamboo Fiber Packaging, Bamboo Trays, Plates, and Cutlery, Bamboo-Based Containers
6) By Polyhydroxyalkanoate (PHA): PHA-Based Films and Wraps, PHA Containers and Packaging
7) By Other Materials: Mushroom Packaging, Seaweed-Based Packaging, Palm Leaf Packaging, Cornstarch-Based Packaging

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Which Top Companies are Driving Growth in the Compostable Packaging Market?
Major companies operating in the compostable packaging market are BASF SE, Mitsubishi Chemical Corporation, WestRock Company, International Paper Company, Amcor Plc, Smurfit Kappa, Stora Enso, DS Smith, Mondi Plc, Rengo Co. Ltd, Huhtamaki Oyj, Klabin SA, Clearwater Paper Corporation, Holmen Iggesund, Carvajal Empaques S.A., Vegware Ltd., NatureWorks LLC, Plantic Technologies Ltd., Novamont SpA, SmartSolve LLC, TIPA Corp., Biome Technologies Plc, Total Corbion PLA BV, Reyma Oficial, Ultra-Green Packaging Inc.

Which Regions Will Dominate the Compostable Packaging Market Through 2029?
North America was the largest region in the compostable packaging market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the compostable packaging market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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