PUBLISHER: Grand View Research | PRODUCT CODE: 1588461
PUBLISHER: Grand View Research | PRODUCT CODE: 1588461
The global compostable packaging market size was estimated at USD 74.01 billion in 2023 and is expected to grow at a CAGR of 6.5% from 2024 to 2030. The market is driven by a combination of environmental concerns, regulatory frameworks, consumer preferences, and advancements in material science.
Government regulations and policies are another significant driver for this market. Many countries and regions are imposing strict regulations on single-use plastics and encouraging the use of compostable alternatives. For instance, the European Union's Single-Use Plastics Directive has set restrictions on plastic packaging, which has led to increased adoption of compostable packaging. Similarly, cities across the U.S., including New York and San Francisco, have introduced bans on non-compostable plastics, creating a favorable regulatory environment for compostable packaging manufacturers.
In addition, corporate social responsibility (CSR) initiatives by businesses play a key role in driving the adoption of compostable packaging. Companies are increasingly recognizing the importance of sustainability in their branding and operations. Packaging is often the most visible aspect of a product, and shifting toward compostable materials allows companies to showcase their commitment to environmental stewardship. For instance, brands like Lush and Pangea Organics use compostable packaging as part of their broader sustainability strategies, appealing to environmentally conscious consumers while aligning with CSR goals.
Finally, technological advancements in material science have improved the performance and cost-efficiency of compostable packaging, further fueling market growth. Innovations in biopolymers, such as polylactic acid (PLA) and polyhydroxyalkanoates (PHA), have made it possible for compostable packaging to match the durability and functionality of traditional plastics. This has opened new possibilities for industries like food & beverage, cosmetics, and consumer goods, which rely heavily on packaging solutions. With continued research and development, the cost gap between conventional plastics and compostable materials is narrowing, making compostable packaging a viable option for mass-market applications.
Global Compostable Packaging Market Report Segmentation
This report forecasts volume & revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global compostable packaging market report based on material, product, application, and region: