Press release
South Korea Compostable Foodservice Packaging Market to Reach USD 968.9 Million by 2036 at 4.3% CAGR
Demand for Compostable Foodservice Packaging in South Korea
Market Snapshot (2026-2036)
• Market size 2026: USD 637.5 million
• Market size 2036: USD 968.9 million
• CAGR (2026-2036): 4.3%
• Leading packaging type: Plates (38.3%)
• Leading material type: Paper & Paperboard (38.0%)
• Leading end use: Chain Restaurants (Dominant)
• Key growth regions: Jeju, South Gyeongsang, South Jeolla, North Jeolla
• Top companies: Huhtamaki Oyj, Stora Enso Oyj, Georgia-Pacific LLC, WestRock Company, Mondi Group
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Market Momentum (YoY Path)
The Market demonstrates a steady upward trajectory, anchored by structural demand shifts and regulatory backing. Beginning at USD 637.5 million in 2026, the Market is expected to maintain consistent expansion through 2028 and 2030 as adoption accelerates across food delivery and quick commerce. Momentum strengthens further into 2031 and 2033, supported by technology advancements in bio-based materials and fiber solutions. By 2035, the Market approaches its projected valuation of USD 968.9 million by 2036, reflecting a stable CAGR of 4.3% throughout the forecast period.
Why the Market is Growing
The Market is driven by a convergence of regulatory enforcement, environmental awareness, and evolving consumer behavior. Government initiatives such as the "Resource Recycling Act" and the "Green New Deal" are accelerating the phase-out of conventional plastics. Urban regulations, particularly in cities like Seoul, are compelling foodservice operators to transition to certified compostable alternatives.
Simultaneously, South Korea's extensive food delivery infrastructure is generating sustained demand for single-use containers. The Market is further supported by corporate ESG commitments, where conglomerates are mandating sustainable procurement across cafeteria operations and food brands, ensuring stable volume demand for compostable packaging suppliers.
Segment Spotlight
1) Product Type
Plates dominate the Market, accounting for 38.3% of the packaging type segment. Their widespread use in outdoor dining, festivals, and public events drives consistent demand. Molded fiber plates provide structural integrity for heavy meals, replacing traditional polystyrene solutions while offering aesthetic designs suited for premium catering.
2) Material Type
Paper & Paperboard hold a 38.0% share, making them the leading material segment. This dominance is supported by established recycling infrastructure and consumer familiarity with paper waste separation. Innovations in PFAS-free grease-resistant coatings have strengthened adoption, particularly for fast-food applications such as wraps and cartons.
Bagasse & Seaweed represent a significant 24.0% share, driven by the need for insulation and rigidity in hot food and beverage packaging. These materials are increasingly used in coffee chains and takeaway services.
3) End Use
Chain Restaurants represent the dominant end-use segment in the Market. Large franchise networks generate high-volume procurement needs and face greater regulatory scrutiny, accelerating the transition to compostable solutions. Economies of scale enable cost efficiencies, making sustainable packaging more viable compared to smaller operators.
Drivers, Opportunities, Trends, Challenges
Drivers:
The Market is primarily driven by stringent regulations such as the "Resource Recycling Act" and the implementation of disposable cup deposit systems. These policies create financial incentives for both consumers and businesses to adopt compostable alternatives.
Opportunities:
The rapid expansion of the quick commerce sector presents a significant opportunity. Platforms are increasingly adopting eco-friendly packaging solutions, creating a high-volume B2B channel for compostable delivery bags, insulated containers, and thermal liners.
Trends:
Material innovation is a defining trend in the Market. The use of marine biomass such as algae and seaweed, along with cellulose extracted from agricultural byproducts, is reshaping the supply chain. These innovations address both environmental concerns and functional requirements for food safety and durability.
Challenges:
A key constraint is the limited industrial composting infrastructure. Many bioplastics require specific conditions not widely available, leading to improper disposal and reduced environmental benefits. Addressing this gap requires coordinated investment in waste processing systems.
Competitive Landscape
The Market is characterized by strong participation from global packaging companies establishing localized production capabilities. Huhtamaki Oyj leads with a 28.0% share, leveraging its expertise in fiber-molded products. Other key players such as Stora Enso Oyj, Georgia-Pacific LLC, WestRock Company, and Mondi Group are focusing on material innovation, printability, and strength to compete in premium and mass-market segments.
Domestic players are increasingly entering the Market by collaborating with chemical companies to develop advanced biopolymers such as PHA and PLA blends. This competitive intensity is driving cost reductions and accelerating the adoption of compostable packaging across high-volume delivery segments.
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Frequently Asked Questions
What is the Market size in 2026?
The Market is valued at USD 637.5 million in 2026.
What is the projected Market value by 2036?
The Market is forecast to reach USD 968.9 million by 2036.
What is the expected CAGR for the Market?
The Market is expected to grow at a CAGR of 4.3% from 2026 to 2036.
Which material segment leads the Market?
Paper & Paperboard lead the Market with a 38.0% share.
Which packaging type dominates the Market?
Plates dominate the Market with a 38.3% share.
Who reminded the key end users in the Market?
Chain Restaurants represent the dominant end-use segment.
Which regions show strong growth potential?
Jeju, South Gyeongsang, South Jeolla, and North Jeolla are key growth regions.
Why FMI: https://www.futuremarketinsights.com/why-fmi
Have a Look at Related Research Reports on the Packaging Domain:
Compostable PHA Film Packaging Materials Market https://www.futuremarketinsights.com/reports/compostable-pha-film-packaging-materials-market
Mesh Bag Market https://www.futuremarketinsights.com/reports/mesh-bags-market
Composite Paper Cans Market https://www.futuremarketinsights.com/reports/composite-paper-cans-market
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About Future Market Insights (FMI)
Future Market Insights, Inc. (FMI) is an ESOMAR-certified, ISO 9001:2015 market research and consulting organization, trusted by Fortune 500 clients and global enterprises. With operations in the U.S., UK, India, and Dubai, FMI provides data-backed insights and strategic intelligence across 30+ industries and 1200 markets worldwide.
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