Compostable Plastic Packaging Market

• Growing awareness regarding the use of compostable plastic products is propelling the market growth.

Significant developments in compostable plastic packaging have been fueled by shifting regulations and rising environmental awareness. The growing use of compostable plastic packaging by food and beverage firms is one noteworthy trend. Compostable alternatives are replacing standard plastic in brand offerings as consumers look for environmentally friendly and sustainable options. The increasing use of compostable containers, silverware, and bags in restaurants and grocery shops is indicative of this change. Compostable packaging is preferred because it contributes to the worldwide movement to lessen plastic pollution, promote ethical waste management, and boost Market CAGR.

In the e-commerce industry, compostable plastic packaging is likewise becoming more and more popular. An increasing number of people are buying online, which has increased demand for environmentally friendly packaging options that are simple to dispose of. Growing numbers of shipping materials and mailing bags are compostable, satisfying the needs of ecologically concerned customers and companies. The growing consciousness of the carbon footprint linked to transportation and packaging is supporting this trend even more, encouraging businesses to choose compostable substitutes in order to lessen their environmental effect.

The market is being shaped by advancements in material technology as well as the use of compostable packaging. New blends and bioplastics that are both compostable and preserve the required durability and shelf life for a range of items are being developed by manufacturers. These developments are essential to extending the usage of compostable plastic beyond single-use products to include robust packaging options for products with longer shelf lives. We should anticipate the development of even more adaptable and environmentally friendly compostable plastic materials as research and development activities continue.

Initiatives for consumer education and labeling are crucial to the market for compostable plastic packaging. There are still many people who need to be made aware of the distinctions between conventional plastics and their compostable counterparts. Better labeling and educational initiatives are starting to enlighten customers about appropriate disposal techniques and the advantages of compostable packaging. By ensuring that compostable plastics are disposed of properly and boosting customer trust, this trend helps to create a more sustainable and eco-friendly future. Thus propelling the Compostable Plastic Packaging market revenue.

In April 2024, Eastman and SEE (formerly Sealed Air) introduced a certified compostable tray that is lightweight and intended to replace conventional polystyrene foam options in protein packaging applications. The new tray is constructed using Eastman's Aventa Renew material, which is composed of wood pulp and acetyl derived from a collection of recycled materials. Eastman explains that the latter comprises a maximum of 43% recycled content, which is certified by ISCC PLUS through a mass balance allocation method. Meanwhile, the CRYOVAC compostable overwrap tray from SEE is certified as industrially compostable and does not contain any PFAS.

Reportedly boasting a weight reduction of approximately 50% compared to PET trays, this packaging solution is specifically engineered to accommodate protein goods of various sizes, amounts, and quantities while also providing excellent leak resistance. Consequently, the tray that was developed together has received certification from TÜV Austria as being compostable in household environments, and from the Biodegradable Products Institute (BPI) as being compostable in industrial settings. Due to its composition predominantly consisting of cellulose acetate generated from wood pulp, this material is capable of decomposing by the action of naturally occurring bacteria, without leaving any microplastics residue.

To promote the use of home compostable packaging, TIPA, a leader in the world of compostable packaging solutions, and Fresh-Lock® closures, a top brand in reclosable flexible packaging technology, will work together in 2024. The Fresh-Lock team is introducing a new line of home compostable pouch closures as a result of their combined efforts.

A lightweight, certified compostable tray was introduced by Eastman and SEE (formerly Sealed Air) in 2024 with the goal of displacing conventional polystyrene foam alternatives in protein packing applications. Eastman's Aventa Renew materials, which are derived from wood pulp and acetyl from a variety of recycled materials, are used to make the new tray. Eastman goes on to clarify that the latter has up to 43% recycled content that has been approved by ISCC PLUS through a mass balance allocation method.

The Global Compostable Plastic Packaging Market Industry experiences a notable surge in demand due to increasing environmental awareness among consumers and businesses. As individuals become more conscious of their ecological footprint, the preference for sustainable packaging solutions grows. This shift is evidenced by a projected market value of 1.99 USD Billion in 2024, indicating a strong inclination towards compostable materials. Companies are responding by innovating and adopting compostable plastics, which align with consumer values. This trend not only addresses waste management issues but also enhances brand reputation, as businesses that prioritize sustainability often attract environmentally conscious consumers.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The market for compostable plastic packaging is largest in Europe due to a combination of factors, including customer preference for eco-friendly products, strict regulations supporting sustainable packaging, and a developed infrastructure for composting and waste management. These elements significantly contribute to the expansion and uptake of compostable plastic packaging in the area. Similarly, the German Compostable Plastic Packaging market held the major market share, and the UK Compostable Plastic Packaging market was the fastest-growing market in the European region.

Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: COMPOSTABLE PLASTIC PACKAGING MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

The Asia-Pacific Compostable Plastic Packaging Market is the second-biggest market. The need for compostable packaging is increasing due to the growing food and beverage industry, government activities supporting eco-friendly solutions, growing middle-class demands for sustainable packaging, and rising environmental concerns. These factors are driving growth, especially in emerging economies. Moreover, China’s Compostable Plastic Packaging market held the largest market share, and the Indian Compostable Plastic Packaging market was the fastest-growing market in the Asia-Pacific region.

The North American compostable Plastic Packaging market is the region with the quickest rate of growth. This rise is being driven by a growing number of consumers who are becoming more environmentally concerned, strict government laws, greater knowledge of and adoption of sustainable practices, and proactive business initiatives to reduce plastic waste and promote the use of compostable alternatives.

Leading market players in the fiercely competitive compostable plastic packaging industry are committed to sustainability and innovation. Market participants are undertaking market developments, including Research and development expenditures, mergers, acquisitions, and strategic alliances. To address the varied demands of the sector, companies concentrate on creating environmentally friendly packaging materials, improving compostability, and broadening their product offerings in the Compostable Plastic Packaging industry.

The worldwide packaging industry is driven by a competitive landscape that offers ecologically friendly alternatives to traditional plastics, with a focus on sustainable practices and environmental consciousness in the global Compostable Plastic Packaging industry. Major players in the Compostable Plastic Packaging market, including TIPA LTD (Israel), Riverside Paper Co. Inc. (US), SmartSolve Industries (US), Özsoy Plastik (Turkey), Ultra Green Sustainable Packaging (US), Hosgör Plastik (Turkey), Eurocell S.r.l (UK), Tetra Pak International SA (Switzerland), (US), Kruger Inc. (Canada), Amcor PLC (Switzerland), Mondi (UK), International Paper Company (US), Smurfit Kappa (US), DS Smith (UK), Klabin SA (Brazil), Rengo Co.

Ltd (Japan), WestRock Company (US), Stora Enso (Sweden), Bemis manufacturing company (US), Rocktenn (US), BASF SE (Germany), Clearwater Paper Corporation (US).

TIPA Ltd is a prominent provider of compostable packaging solutions on a global scale. The company was established in 2010 with the goal of minimizing plastic waste by providing flexible and entirely compostable packaging options. The product line from TIPA serves a variety of markets, including food, beverage, fashion, e-commerce, and more. It offers compostable plastic packaging for both food and non-food applications, including bags, films, pouches, and zipper bags. Their cutting-edge packaging options replicate the properties of traditional plastics while decomposing naturally in composting settings, supporting the company's objective to transform the packaging sector and advance the circular economy.

SmartSolve Industries is a reputable provider of sustainable and compostable packaging alternatives. The company was founded to solve environmental issues and provide a selection of environmentally friendly packaging products. Compostable plastic bags, films, and other packaging materials derived from sustainable sources are among their products. Composting environments are the ideal setting for SmartSolve's compostable plastic packaging, which minimizes waste and the environmental damage caused by conventional plastics. With a dedication to sustainability and innovation, SmartSolve Industries helps many industries adopt a more environmentally friendly approach to packaging.