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Compostable Packaging Market Size

Report ID: GMI12358
Published Date: Nov 2024
Report Format: PDF

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Compostable Packaging Market Size

The global compostable packaging market was valued at USD 80.5 billion in 2024 and is estimated to grow at a CAGR of 7.6% from 2025 to 2034.

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The demand for sustainable packaging solutions is fueling market growth as environmental awareness and regulatory requirements increase. Eco-friendly packaging materials that are compostable, recyclable, and biodegradable are at the forefront of innovation and investment, aligning with consumer preferences for environmentally responsible products and promoting overall market development

Compostable Packaging Market Report Attributes
Report Attribute	Details
Base Year:	2024
Compostable Packaging Market Size in 2024:	USD 80.5 Billion
Forecast Period:	2025-2034
Forecast Period 2025-2034 CAGR:	7.6%
2034 Value Projection:	USD 168.1 Billion
Historical Data for:	2022 - 2024
No. of Pages:	520
Tables, Charts & Figures:	688
Segments covered:	Material, Product, Application, End-use Industry
Growth Drivers:	Increasing environmental awareness among consumers globally Stricter government regulations supporting sustainability Retailers and brands embracing eco-friendly solutions Advances in material science for performance Shift in consumer preferences towards sustainability
Pitfalls & Challenges:	Higher production costs compared to alternatives Insufficient composting infrastructure in many regions

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For instance, in November 2024, UPM Specialty Papers and Eastman introduced biopolymer-coated paper, a compostable packaging solution that offers enhanced grease and oxygen barriers for food applications. The biopolymer-coated paper integrates Eastman’s biobased Solus additives with barrier base papers. The new paper solution features a thin, compostable coating that maintains its recyclability within existing fiber recycling streams. UPM’s barrier base papers, known as UPM Solide Lucent and UPM Prego, are enhanced by the unique coating, achieving a level of barrier performance that is unattainable by each component alone.

Authors: Suraj Gujar, Sandeep Ugal

Frequently Asked Questions (FAQ) :

The global market size for compostable packaging was valued at USD 80.5 billion in 2024 and is projected to reach USD 168.1 billion by 2034, driven by a CAGR of 7.6% from 2025 to 2034.

The polylactic acid (PLA) segment is expected to exceed a value of USD 55 billion by 2034, driven by its biodegradability and versatility in packaging applications.

North America held a significant share of over 30% in the global market, driven by heightened consumer awareness of environmental concerns and robust regulatory measures aimed at reducing plastic waste.

Major players in the industry include Amcor, Baroda Rapids, Biopac, Eurocell, Futamura Chemical, Genpak, Good Start Packaging, Graphic Packaging Holding, International Paper, Mayr-Melnhof Karton, Mondi, Pappco Greenware, Pactiv Evergreen, Sealed Air, TIPA, Ultra-Green Sustainable Packaging, Vegware, and WestRock.