Press release
Compostable Packaging Market Poised for 6% CAGR Driven by Sustainable & Biodegradable Materials
Compostable Packaging Market
The compostable packaging market growing due to the key player's investment in innovations in sustainable packaging. For instance, Amcor has launched the AmFiber Performance Paper stand-up pouch for dry beverages amid sustainable packaging innovations, a paper-based refill pack designed for instant coffee and dry beverage products. Government focus on compostable packaging has intensified globally as part of broader circular economy and plastic waste reduction strategies. In addition, strict regulations and extended producer responsibility (EPR) frameworks to phase out conventional single-use plastics and promote compostable, recyclable, or reusable alternatives.
Get the Detailed Industry Analysis (including the Table of Contents, List of Figures, and List of Tables) - from the Compostable Packaging MarketResearch Report: https://marketgenics.co/press-releases/compostable-packaging-market-22687
Key Driver, Restraint, and Growth Opportunity Shaping the Global Compostable Packaging Market
The primary driver for the global compostable packaging market is the increasing consumer awareness and preference for eco-friendly, biodegradable, and sustainable packaging alternatives to conventional plastic. As plastic waste continues to pose severe environmental challenges, brands across industries especially food and beverage, personal care, and e-commerce are transitioning toward compostable packaging to meet consumer and regulatory expectations. Consumers increasingly value brands that align with sustainability and circular economy principles.
A key restraint in the compostable packaging market is the high production and processing cost compared to conventional plastics, coupled with the limited availability of industrial composting facilities. The specialized raw materials such as PLA, PHA, and starch blends require advanced manufacturing technologies, which increase overall product costs. Additionally, inadequate composting infrastructure in developing regions restricts the efficient disposal and decomposition of compostable packaging, often leading them to landfills.
An emerging opportunity for the global compostable packaging market lies in developing bio-based polymers and next-generation compostable materials that enhance product performance while reducing production costs. Manufacturers are investing in research to improve mechanical strength, heat resistance, and shelf-life compatibility of compostable materials. For instance, in May 2025, Novamont S.p.A. unveiled its new Mater-Bi resin series that uses agricultural by-products to create flexible, high-barrier compostable films suitable for fresh produce packaging. These innovations reduce reliance on petrochemical feedstocks while aligning with circular economy goals.
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Regional Analysis of Compostable Packaging Market
The compostable packaging market in North America has the dominated because the region's stringent regulations to curb single-use plastics such as Canada's Single-Use Plastics Prohibition Regulations (2022) and U.S. state-level bans in California, New York, and Washington which have accelerated the shift toward compostable and bio-based packaging alternatives. In addition, leading corporations and packaging producers in the region, including NatureWorks LLC, BASF SE, Amcor plc, and Cargill, are heavily investing in R&D and product innovation to expand their compostable product portfolios. For instance, in May 2024, NatureWorks announced the expansion of its IngeoTM PLA production in the U.S. and new application development partnerships to meet rising demand across foodservice, e-commerce, and personal care sectors.
The largest growth is projected in the compostable packaging market of Asia Pacific due to rising consumer awareness and demand for eco-friendly packaging in urban centres further support market expansion. In addition, strong government's rules and regulations driven the compostable packaging market. For instance, India's Plastic Waste Management (PWM) Rules 2022 ban several categories of single-use plastics and encourage the use of certified compostable materials approved by the Central Pollution Control Board (CPCB), driving strong adoption among foodservice and FMCG companies.
Prominent players operating in the global compostable packaging market include Amcor plc, BASF SE, BioBag International AS, Biopak Pty Ltd, Biotec GmbH & Co. KG, Cereplast Inc., Danimer Scientific, DS Smith Plc, Eco-Products, Inc., Futamura Chemical Co., Ltd., Genpak LLC, Huhtamaki Oyj, NatureWorks LLC, Novamont S.p.A., Stora Enso Oyj, Taghleef Industries, TIPA Corp, Total Corbion PLA, Vegware Ltd., and Other Key Players.
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Recent Development and Strategic Overview:
In March 2025, NatureWorks launched platform technology for faster composting PLA grades. The new grades within the Ingeo Extend platform are designed for faster compostability, up to 8x faster, than other existing PLA grades. They can also be blended with other existing Ingeo PLA grades to enhance their comparative biodegradation and disintegration rates.
In July 2024, TIPA and the Fresh-Lock Team Collaborate to advance the adoption of home compostable packaging. Through these united efforts, the Fresh-Lock team is launching a new portfolio of home compostable closures for pouches.
Get a preview of our Compostable Packaging Market Playbook - your guide to GTM strategy, competitive intelligence, supplier dynamics, and Consumer Behavior Analysis: https://marketgenics.co/playbook/compostable-packaging-market-22687
Key Trend: Integration of Smart and Functional Compostable Packaging
A major trend shaping the compostable packaging market is the integration of smart and functional features into sustainable materials, enabling both sustainability and enhanced consumer experience. Companies are merging compostability with advanced features such as temperature control, moisture resistance, and traceability technologies. For instance, in April 2025, Amcor plc launched its new line of compostable packaging with embedded RFID sensors to track supply chain conditions and ensure food safety. This development bridges the gap between performance and sustainability, appealing to both consumers and industrial users.
Additionally, brands are experimenting with aesthetic and branding flexibility in compostable formats, expanding their application in premium food and cosmetic sectors. As regulatory frameworks tighten and digital packaging advances, the fusion of smart technology with compostable materials is likely to redefine the industry landscape.
Smart compostable packaging enhances both functionality and sustainability, positioning it as the next evolution in eco-packaging solutions.
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Mr. Debashish Roy
MarketGenics India Pvt. Ltd.
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Email: sales@marketgenics.co
Website: https://marketgenics.co
About Us
MarketGenics is a global market research and management consulting company empowering decision makers across healthcare, technology, and policy domains. Our mission is to deliver granular market intelligence combined with strategic foresight to accelerate sustainable growth.
We support clients across strategy development, product innovation, healthcare infrastructure, and digital transformation.
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