Compostable Packaging Market Size, Share & COVID-19 Impact Analysis, By Material (Polylactic Acid(PLA), Wheat Straw Fibre, TPLA & CPLA, Cellulose, Bamboo, PHA, and Others), By Application (Bags, Pouches, Trays, Tapes, Mailer Bags, Films, and Clamshells), By End Use (Food & Beverages, Pharmaceuticals, Personal Care & Cosmetics, and Others), and Regional Forecast, 2024-2032

Compostable packaging is designed to offer sustainable and eco-friendly packaging materials that can be easily composted at home or in an industrial composting facility. It is an eco-friendly alternative to single-use plastics that reduces packaging waste in landfills. The rising awareness regarding biodegradable and compostable packaging methods is the key factor driving the growth of the global compostable packaging market. Augmenting demand for attractive product appearance will offer potential opportunities for market growth. Innovative developments in packaging from the manufacturers also contribute to expanding the compostable packaging market.

• For instance, in June 2020, Novamont and Colussi launched the new MISURA product line with compostable packaging made of Mater-Bi. The innovation is a compostable package with a barrier effect against oxygen and humidity for extended shelf life.

Increasing environmental awareness amongst consumers in developed countries leads to rapidly adopting compostable packaging, thus driving market growth. Additionally, the awareness of plastic packaging waste leakage has generated huge demand for sustainable packaging solutions. It has forced manufacturers to opt for compostable packaging materials, thus contributing to the expansion of the market. The utilization of compostable packaging in the food and beverages and personal care & cosmetics industry is also expected to boost the market growth.

The lack of sufficient technology to develop compostable packaging products is the key factor restraining the market growth. Higher prices associated with the purchase also limit the development of the global compostable packaging market. Moreover, as compostable packaging has a shorter life and low load-carrying strength, the market growth may constrain.

IMPACT OF COVID-19 ON THE COMPOSTABLE PACKAGING MARKET

The emergence of the novel coronavirus led to a long-term effect on many industries worldwide. The outbreak crucially disrupted several supply-chain and manufacturing operations due to the imposed lockdowns and other limitations such as business shutdowns. The global compostable packaging market also faced negative effects in the early stages. The consumer demand subsequently decreased. However, with the ease of lockdowns and regulations, the market will experience steady growth soon. The market will gain momentum due to the increasing consumer awareness regarding a sustainable environment.

SEGMENTATION

KEY INSIGHTS

The report will cover the following key insights:

• Recent Advancements in the Compostable Packaging Market


• Key Industry Trends


• Regulatory Landscape for the Compostable Packaging Market


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

ANALYSIS BY MATERIAL

Based on material, the market is segmented into polylactic acid (PLA), wheat straw fibre, TPLA & CPLA, cellulose, bamboo, PHA, and others. Polylactic acid (PLA) dominates the material segment in the global compostable packaging market. PLA leads the segment’s growth as it is edible, biodegradable, and carbon-neutral and can easily be broken down in the environment rather than crumble into harmful micro-plastics.

ANALYSIS BY APPLICATION

Based on application, the market is segmented into bags, pouches, trays, tapes, mailer bags, films, and clamshells. The bag is the leading segment of the compostable packaging market. Bags are in great demand from end-use industries such as food and beverages, pharmaceuticals, and personal care packaging. They can be of various types and be used for multiple purposes, thus leading to market growth.

ANALYSIS BY END USE

Based on end use, the market is segmented into food & beverages, pharmaceuticals, personal care & cosmetics, and others. Food and beverages holds the largest market share in the compostable packaging market. The growing online food delivery services, the huge demand for healthy, ready-to-eat food products, and environmentally-friendly packaging leads to the segment’s growth.

REGIONAL ANALYSIS

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The compostable packaging market has been studied across North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is the dominating region of the global compostable packaging market. The dominance can be attributed to the rising demand for compostable packaging due to the health-conscious population in the region and the government initiatives for sustainable packaging solutions. Europe is the second leading region owing to the ban on single-use plastics and the rapid adoption of compostable packaging methods. Asia Pacific will foresee significant growth in the compostable packaging market due to the demand for eco-friendly and compostable packaging products in many end-use industries. Due to the increasing food & beverages and cosmetics industries, Latin America & the Middle East and Africa will grow moderately in the forthcoming years.

KEY PLAYERS COVERED

The report will include profiles of key players such as TIPA Ltd., Crawford Packaging, Novamont S.p.A., BioGreen Packaging, Green Dot Holdings LLC, SmartSolve Industries, Ultragreen Sustainable Packaging, Clearwater Paper Corporation, SAES Coated Films S.p.A., Roquette Frères, Kruger Inc., Grabio Greentech Corporation, and CuanTech, among others.

KEY INDUSTRY DEVELOPMENTS:

• August 2022 - TIPA announced the launch of a new compostable packaging solution developed with a blend of polymers. The recent launch meets performance requirements for multiple packaging applications, especially compostable films and laminates, serving fashion, fresh produce, and dry foods and snacks markets.


• June 2022 - Green Dot Bioplastics declared the expansion of its Terratek BD line with nine new compostable grades targeted and designed for single-use packaging applications. The expanded offering for film extrusion, thermoforming, and injection moulding combines with Green Dot Bioplastic’s goal to gain faster biodegradability rates.


• August 2021 - Crawford Packaging introduced a new poly-mailer that is lightweight, cost-effective, and designed with 100% recycled materials to fulfill sustainable packaging goals. Even though they are made from recycled materials, they offer the same high quality as a traditional poly mailer.


• January 2021 - Novamont acquired BioBag Group, and planned to build more innovative projects that enhance the separate organic waste collection and composting systems. The acquisition has also generated profitable growth opportunities in the compostable packaging sector.