Compostable & Biodegradable Refuse Bags - Global Strategic Business Report

The global market for Compostable & Biodegradable Refuse Bags was estimated at US$388.2 Million in 2024 and is projected to reach US$567.0 Million by 2030, growing at a CAGR of 6.5% 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 & Biodegradable Refuse Bags market.

Global Compostable & Biodegradable Refuse Bags Market - Key Trends & Drivers Summarized

Why Is the Demand for Compostable & Biodegradable Refuse Bags Increasing?

The rising awareness of environmental sustainability and the growing concerns over plastic pollution have significantly driven the demand for compostable and biodegradable refuse bags. Traditional plastic waste contributes heavily to landfill overflow, marine pollution, and long-term environmental degradation, leading governments, businesses, and consumers to seek sustainable alternatives. Compostable and biodegradable refuse bags, made from materials such as cornstarch, polylactic acid, and biodegradable polymers, offer an eco-friendly solution to waste disposal without leaving behind harmful microplastics. The enforcement of stringent regulations banning single-use plastics in several countries has accelerated the shift toward biodegradable alternatives. Many governments have introduced policies mandating the use of compostable bags for waste collection, particularly in regions with well-developed composting and waste management infrastructure. Additionally, the increased adoption of home and municipal composting programs has further bolstered the demand for these eco-friendly refuse bags, as they facilitate organic waste disposal without contaminating compostable material streams. Consumer behavior has also played a critical role in market expansion. As people become more environmentally conscious, there is a growing preference for sustainable household products, including biodegradable waste bags. Retailers and supermarkets are responding to this trend by offering compostable refuse bags as part of their sustainable product lines, reinforcing consumer choices and making eco-friendly options more accessible. The increasing influence of corporate social responsibility initiatives has further driven businesses and institutions to replace conventional plastic waste bags with biodegradable alternatives, strengthening market growth.

How Are Material Innovations Enhancing the Effectiveness of Biodegradable Refuse Bags?

Significant advancements in material science have improved the durability, decomposition rate, and functionality of compostable and biodegradable refuse bags. Early biodegradable plastics often suffered from poor strength and slow degradation under certain environmental conditions, limiting their adoption. However, new formulations incorporating plant-based biopolymers, enzyme-based additives, and nanotechnology-enhanced materials have resulted in bags that maintain high performance while breaking down efficiently in composting environments. One of the most impactful innovations is the development of home-compostable refuse bags, which can degrade naturally in residential compost bins without requiring industrial composting facilities. These bags are gaining popularity among environmentally conscious consumers who compost food waste at home, contributing to reduced landfill dependency and promoting circular waste management practices. Additionally, research into marine-degradable bioplastics is gaining traction, aiming to address the issue of plastic waste entering oceans and causing harm to marine ecosystems. The use of multi-layer biodegradable films has also improved the moisture and tear resistance of compostable bags, allowing them to handle heavier loads without compromising their decomposition properties. This is particularly beneficial for commercial waste collection in restaurants, food processing industries, and municipal organic waste programs, where durability is a key factor. Moreover, manufacturers are increasingly focusing on customized compostability rates, ensuring that refuse bags break down within specific time frames to align with industrial composting cycles and landfill reduction goals.

What Market Trends Are Shaping the Growth of Compostable & Biodegradable Refuse Bags?

The rising focus on circular economy principles and waste reduction policies is a key trend influencing the compostable and biodegradable refuse bags market. Governments, municipalities, and private organizations are working together to implement waste segregation programs that prioritize compostable materials, creating a direct need for biodegradable waste collection solutions. The establishment of bio-waste treatment facilities, composting plants, and anaerobic digestion units is further enhancing the adoption of these refuse bags by ensuring a well-structured end-of-life disposal process. The increasing role of retail and e-commerce in sustainability is another factor propelling market demand. Major online and brick-and-mortar retailers are prioritizing sustainable product offerings, with biodegradable waste bags becoming a staple in grocery aisles and online eco-friendly product categories. Subscription-based home delivery services for compostable products have gained traction, making it easier for consumers to access and regularly replenish their supply of biodegradable refuse bags. Additionally, businesses in the hospitality and food service sectors are integrating compostable waste bags into their sustainability strategies, aligning with corporate goals of reducing plastic waste and improving environmental impact. The cost competitiveness of biodegradable refuse bags is improving, thanks to economies of scale and increased investment in bioplastics manufacturing. Initially, the high production costs of compostable materials posed a challenge to market penetration. However, with technological advancements and increased production capacities, prices have gradually declined, making these eco-friendly alternatives more affordable for both businesses and households. The expansion of government subsidies and tax incentives for biodegradable packaging manufacturers has further contributed to price stabilization, encouraging widespread adoption.

What Are the Key Growth Drivers Fueling the Market?

The growth in the compostable and biodegradable refuse bags market is driven by several factors, including regulatory enforcement, material innovations, consumer preferences, and expanding waste management infrastructure. One of the most significant drivers is the global ban on single-use plastics, which has compelled businesses and municipalities to adopt biodegradable alternatives for waste collection and disposal. Countries in Europe, North America, and Asia-Pacific have implemented strict legislation mandating compostable waste bags for organic waste collection, driving demand across multiple industries. The expanding network of municipal composting programs is another key growth factor. Cities and towns worldwide are developing composting facilities that require compatible waste collection solutions, increasing the need for compostable refuse bags. As governments continue to invest in composting infrastructure and public awareness campaigns, the market is expected to witness sustained demand from both residential and commercial sectors. The rising consumer shift toward sustainable lifestyles is also influencing market growth. Environmentally conscious consumers are actively seeking biodegradable alternatives to plastic waste bags, with many willing to pay a premium for sustainable products. This shift has prompted manufacturers to enhance their marketing strategies, focusing on eco-certifications, compostability labels, and product transparency to build consumer trust and loyalty. Additionally, the integration of bioplastics in manufacturing is making biodegradable refuse bags more accessible and functional. The development of starch-based polymers, polylactic acid blends, and bio-based polyesters has resulted in products that meet durability requirements while aligning with global sustainability goals. These innovations, coupled with increasing investments in sustainable packaging research, are expected to further drive market expansion in the coming years.

With these factors collectively shaping the compostable and biodegradable refuse bags market, the industry is poised for continued growth, supported by technological advancements, evolving consumer preferences, and global initiatives to reduce plastic waste and promote sustainable waste management solutions.

Report Scope

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

Segments: Material (Polylactic Acid, Polyhydroxyalkanoate, Polybutylene Adipate Terephthalate, Polybutylene Succinate, Other Materials); Capacity (7 to 20 Gallons Capacity, 20 to 30 Gallons Capacity, 30 to 40 Gallons Capacity, 40 to 55 Gallons Capacity, Above 55 Gallons Capacity); Application (Retail and Consumer Application, Industrial Application, Institutional Application)

Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Polylactic Acid segment, which is expected to reach US$290.9 Million by 2030 with a CAGR of a 7.2%. The Polyhydroxyalkanoate segment is also set to grow at 6.3% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $105.8 Million in 2024, and China, forecasted to grow at an impressive 10.3% CAGR to reach $117.7 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 & Biodegradable Refuse Bags 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 & Biodegradable Refuse Bags 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 & Biodegradable Refuse Bags 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 Ams Global Suppliers Group, Avenco LTD, BioBag International AS, Biobag World, Biocup and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Select Competitors (Total 48 Featured):

• Ams Global Suppliers Group
• Avenco LTD
• BioBag International AS
• Biobag World
• Biocup
• Biodegradable Products Institute
• Biosphere Corporation
• EcoSafe Zero Waste Inc.
• ExoPackaging
• Footprint
• Green Man Packaging
• Green Paper Products
• GreenSavers
• Leadpacks Packing Co., Ltd.
• Mimex Inc.
• Natur-Tec®
• Plastic Free Co.
• Rovi Packaging, SA
• SC Johnson Professional
• Smile Plastics

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