Compostable Foodservice Packaging Market Analysis

Compostable Foodservice Packaging Market Analysis

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Compostable foodservice packaging market size from the plate segment will reach a significant value by the end of 2032, led by the increasing incentivization by governments and municipalities on the use of compostable materials for addressing waste management and environmental concerns. Compostable plates can be addressed as effective alternatives for environment and human health as they can be composted to create nutrient-rich soil compost for improving soil fertility while supporting sustainable agricultural practices. Increasing number of product launches will also enhance the market outlook. For instance, in July 2022, Hefty introduced compostable printed paper plates that are compostable and manufactured with 98% plant-based materials devoid of PFAS.
 

The plastic material segment recorded 45% of the compostable foodservice packaging market share in 2022. Compostable plastics are non-toxic as they decompose back into water, carbon dioxide, and biomass when composted. The rising popularity of bio-plastics from sources, such as sugar beets and seaweed along with the surging governing support to limit single-use plastic (SUP) will outline the industry outlook. For instance, the Indian government, beginning from FY 2023-24, announced its plans to mandate 100% recycling of compostable plastic material in accordance with the Extended Producers Responsibility (EPR).
 

Compostable foodservice packaging market size from the restaurant segment is estimated to hold a significant revenue share by the end of 2032, attributed to the rising usage of single-use food containers and utensils to limit the environmental impacts. In restaurants, compostable foodservice packaging has grown increasingly popular due to paradigm shift towards eco-friendly packaging in a bid to reduce plastic pollution. To that end, the rising emphasis of leading companies on innovations will drive the segment expansion. For instance, in May 2022, Eco-Products, leading subsidiary of Novolex, unveiled a compostable wrap for foodservice companies that offer takeaway and delivery.
 

North America compostable foodservice packaging market size dominated around USD 6.7 billion in 2022, Owing to the surging awareness of environmental issues in the region has compelled consumers and businesses to look for more sustainable alternatives to traditional single-use plastics. The rising implementation of restrictions or bans on single-use plastics by many local governments and municipalities is further favoring the demand for compostable foodservice packaging. The surging focus on improving composting infrastructure as well as waste management practices will also add to the regional market growth.