The compostable packaging market has seen significant growth, rising from $85.65 billion in 2023 to $92.56 billion in 2024, with a compound annual growth rate (CAGR) of 8.1%. This growth is attributed to increased consumer awareness of environmental impacts, regulatory pressures to reduce plastic waste, growth in bio-based and renewable feedstocks, a trend toward sustainable products, and corporate sustainability goals. The market is projected to grow to $127.08 billion by 2028 at a CAGR of 8.2%. Drivers include stricter plastic regulations, increasing demand for sustainable packaging, advancements in compostable materials, growth in the food and beverage sector, and investment in circular economy solutions. Key trends include expanded composting infrastructure, IoT and smart packaging technologies, advancements in compostable materials, and adoption in e-commerce and food delivery sectors.
Major Driver In The Compostable Packaging Market
The compostable packaging market is likely to experience significant growth due to the booming food and beverage industry. Factors driving this growth include an increasing global population and shifting consumer preferences towards healthier and sustainable options. Compostable packaging is becoming essential to address plastic pollution and meet regulatory demands for sustainability. Statistics Sweden reported in September 2022 that food and beverage sales revenue reached $37.44 billion (SEK 334 billion), reflecting a 2.9% increase. This trend is fueling the compostable packaging market.
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Compostable Packaging Market Competitive Landscape
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.
Key Compostable Packaging Market Trend
Companies in the compostable packaging market are advancing their products with technological innovations, such as plastic-free packaging, to improve sustainability and performance. Plastic-free packaging utilizes alternative materials to reduce environmental impact. In June 2021, BioPack Solutions, a UK-based packaging company, introduced a range of plastic-free picnic packs. These packs, made from home-compostable sugarcane pulp, offer a waste-free packaging solution that is rapidly renewable and biodegradable, enabling consumers to enjoy environmentally friendly gatherings.
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Compostable Packaging Market Segmentation
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
By Geography:The regions covered in the compostable packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the compostable packaging market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period.
The Compostable Packaging Global Market Report 2024 furnishes information about the global compostable packaging market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
