Compostable Plastics - Global Strategic Business Report

The global market for Compostable Plastics was estimated at US$2.8 Billion in 2024 and is projected to reach US$5.0 Billion by 2030, growing at a CAGR of 10.3% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Compostable Plastics market.

Global Compostable Plastics Market - Key Trends & Drivers Summarized

Why Is Compostable Plastic Gaining Widespread Attention?

The urgent need to reduce plastic waste and transition toward sustainable materials has placed compostable plastics at the forefront of eco-friendly packaging and product innovation. Traditional plastics, which take hundreds of years to degrade, are a major contributor to landfill overflow and marine pollution. Compostable plastics, made from renewable sources such as cornstarch, sugarcane, and polylactic acid, offer a viable alternative by breaking down into natural elements under controlled composting conditions. Government regulations and international policies aimed at curbing single-use plastic consumption have been key drivers of the market. Many countries have implemented bans or restrictions on conventional plastics, prompting businesses to seek alternatives that comply with sustainability mandates. The European Union’s Single-Use Plastics Directive and similar regulations in the United States, Canada, and Asia-Pacific are accelerating the adoption of compostable plastics in food packaging, disposable cutlery, shopping bags, and agricultural films. Corporate sustainability initiatives are also playing a significant role in market growth. Major multinational brands are integrating compostable plastics into their packaging strategies to meet carbon neutrality and plastic reduction targets. Businesses in the food and beverage, retail, and personal care sectors are increasingly adopting compostable materials for product packaging, reinforcing the shift toward eco-friendly alternatives. This growing commitment to sustainability is not only a regulatory necessity but also a response to changing consumer preferences for biodegradable and compostable solutions.

How Are Material Innovations Enhancing the Performance of Compostable Plastics?

Advancements in biopolymer technology have significantly improved the functional properties of compostable plastics, addressing concerns related to durability, flexibility, and decomposition rates. Earlier versions of compostable plastics often lacked moisture resistance and mechanical strength, limiting their applicability. However, recent innovations have led to the development of more robust materials that closely mimic the characteristics of conventional plastics while maintaining full biodegradability. One of the most significant breakthroughs has been the enhancement of polylactic acid and polyhydroxyalkanoates, which offer improved tensile strength and thermal stability. These materials are now being used in a wide range of applications, from flexible food packaging to rigid containers and disposable utensils. Additionally, advancements in multi-layer compostable films have enhanced moisture and oxygen barrier properties, making them suitable for longer shelf-life applications in the food industry. Another key development is the rise of home-compostable plastics, designed to break down in backyard composting conditions without requiring industrial composting facilities. This innovation is particularly important for regions where industrial composting infrastructure is limited, ensuring that consumers can responsibly dispose of compostable plastics in home composting systems. Furthermore, researchers are exploring enzymatic additives that accelerate the decomposition process, allowing compostable plastics to degrade more efficiently in both industrial and natural environments.

What Market Trends Are Driving the Expansion of Compostable Plastics?

The increasing adoption of circular economy principles is a major trend influencing the compostable plastics market. Businesses and policymakers are shifting toward closed-loop packaging systems that minimize waste and maximize resource efficiency. This has led to strong collaborations between manufacturers, waste management companies, and policymakers to establish robust composting infrastructure that supports the widespread use of compostable plastics. The rapid expansion of the food service and delivery industry has also fueled demand for compostable plastics. With the surge in online food ordering, takeout packaging waste has become a growing environmental concern. Many restaurants, cafes, and food delivery platforms are transitioning to compostable containers, cutlery, and straws as part of their sustainability commitments. Additionally, major supermarkets and grocery chains are replacing traditional plastic produce bags with compostable alternatives, reinforcing their commitment to waste reduction. Consumer behavior is another key factor driving market growth. As environmental awareness increases, consumers are actively choosing brands that prioritize sustainable packaging solutions. Millennials and Gen Z, in particular, are influencing purchasing decisions by favoring businesses that align with their values of sustainability and plastic waste reduction. As a result, companies across multiple industries are leveraging compostable plastics as a competitive differentiator, marketing their products as eco-friendly and responsible choices.

What Are the Key Growth Drivers Fueling the Market?

The growth in the compostable plastics market is driven by several factors, including regulatory enforcement, technological advancements, and increasing consumer demand for sustainable alternatives. One of the primary growth drivers is the expansion of plastic bans and sustainability regulations worldwide. Governments are implementing stricter policies that mandate the use of biodegradable and compostable materials, compelling industries to accelerate the transition away from fossil fuel-based plastics. The rise of bio-based polymer production is also playing a crucial role in market expansion. Manufacturers are investing in large-scale production facilities for bioplastics, increasing the availability and affordability of compostable materials. As economies of scale improve, compostable plastics are becoming more cost-competitive with traditional plastics, making them a feasible option for businesses seeking sustainable packaging solutions. Corporate commitments to reducing plastic waste are another major market driver. Global brands are pledging to achieve net-zero plastic waste by 2030, partnering with compostable plastic manufacturers to develop customized solutions for their packaging needs. These collaborations are fostering innovation and accelerating the commercialization of new compostable materials tailored for diverse applications. Additionally, the expansion of municipal composting infrastructure is enhancing the adoption of compostable plastics. As more cities invest in composting facilities and collection programs, the ability to process compostable plastics effectively is improving. This development is encouraging businesses and consumers to shift toward compostable alternatives, knowing that proper waste management systems are in place.

With these factors collectively shaping the future of the compostable plastics market, the industry is poised for sustained growth, driven by evolving regulatory landscapes, advancements in material science, and the increasing demand for environmentally responsible packaging solutions.

Report Scope

The report analyzes the Compostable Plastics market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.

Segments: Product Type (Starch Blends, Polylactic Acid (PLA), PBAT, PBS, Other Product Types); End-Use (Packaging End-Use, Textile End-Use, Automotive and Transportation End-Use, Consumer Goods End-Use, Agriculture End-Use, Other End-Uses)

Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Starch Blends segment, which is expected to reach US$3.0 Billion by 2030 with a CAGR of a 12.2%. The Polylactic Acid segment is also set to grow at 7.9% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $728.7 Million in 2024, and China, forecasted to grow at an impressive 9.3% CAGR to reach $767.0 Million by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Compostable Plastics Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Compostable Plastics Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Compostable Plastics Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as BASF SE, Biome Bioplastics Limited, Borealis AG, Braskem, Danimer Scientific and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Select Competitors (Total 41 Featured):

• BASF SE
• Biome Bioplastics Limited
• Borealis AG
• Braskem
• Danimer Scientific
• Footprint
• Futerro
• Green Dot Bioplastics
• GreenMantra Technologies
• Huhtamäki Oyj
• Mitsubishi Chemical
• NatureWorks LLC
• Novamont
• Plantic Technologies
• Sealed Air
• Smurfit Kappa
• Stora Enso
• TIPA Corp.
• TotalEnergies Corbion
• Xampla Ltd.

Tariff Impact Analysis: Key Insights for 2025

Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.

The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.

What’s Included in This Edition:

• Tariff-adjusted market forecasts by region and segment
• Analysis of cost and supply chain implications by sourcing and trade exposure
• Strategic insights into geographic shifts

Buyers receive a free July 2025 update with:

• Finalized tariff impacts and new trade agreement effects
• Updated projections reflecting global sourcing and cost shifts
• Expanded country-specific coverage across the industry