Authored By: Sarah
11 Jul 2024

 Compostable Plastic Market to grow by USD 2885.5 million between 2024-2028

According to a research report “ Compostable Plastic Market” by End-user (Packaging, Consumer goods, Textiles, Agriculture, Others) Product (Compostable bag, Compostable cutlery, Compostable gloves, Compostable straw, Others) Geography (Europe, North America, APAC, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 2885.5 million at a CAGR of  19.16% during the forecast period. In the business world, the shift towards sustainable practices has led to a significant expansion of the compostable packaging market. Valued at USUSD 104 billion in 2023, this sector is projected to grow by 6.35% annually, reaching USUSD 198 billion by 2027. This growth is driven by multinational corporations prioritizing sustainability, increasing consumer awareness, and regulatory initiatives like the EU Single-Use Plastics Directive. The end-of-life benefits of compostable packaging, which enables the materials to decompose into carbon dioxide, water, inorganic compounds, and biomass for agricultural use, further bolsters its appeal..

Browse market data tables, figures, and in-depth TOC on “Compostable Plastic Market” by End-user (Packaging, Consumer goods, Textiles, Agriculture, Others) Product (Compostable bag, Compostable cutlery, Compostable gloves, Compostable straw, Others) Geography (Europe, North America, APAC, South America, Middle East and Africa) Global Forecast to 2028.

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By End-user, the Packaging segment is projected to dominate the market size in 2024.

In the compostable plastic market, eco-friendly alternatives to conventional plastic bags are gaining traction. Compostable bags, specifically made from plant materials like sugar starch, meet stringent composability standards such as Australia's AS4736. These bags, free from toxic elements, decompose rapidly in composting systems due to microbial activity, resulting in nutrient-rich compost. The use of compostable bags not only reduces waste but also aligns with businesses' sustainability goals.

By Product, Compostable bag  segment is expected to hold the largest market size for the year 2024.

In the burgeoning compostable plastic market, packaging represents a significant sector, accounting for over 60% of bioplastic consumption. Compostable plastics are utilized in the production of various packaging formats, including bottles, cups, pots, films, and loose-fill. These eco-friendly alternatives cater to the demands of the fresh food, dry snacks, candy, bakery goods, juice bottles, and meat industries, as well as premium and branded product sectors. Biodegradable packaging solutions, such as those derived from compostable plastics, are increasingly preferred for their environmental benefits and suitability for organic food and high-end product wrapping.

Europe is forecasted to hold the largest market size by region in 2024.

In the business realm, the compostable plastic market represents a significant growth opportunity. This sector caters to the increasing demand for eco-friendly alternatives to traditional plastic, with compostable plastics biodegrading naturally and reducing waste. Key players in this market include BASF SE, Danone SA, and Novamont S.p.A., who are investing in research and development to improve product quality and expand their offerings. The market's potential is further bolstered by government initiatives and consumer awareness campaigns promoting sustainable practices.

The Compostable Plastic Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • BASF SE
  • BEWI ASA
  • Biome Technologies plc
  • BioTec Bags India Pvt. Ltd.
  • BOSK Bioproducts
  • Cargill Inc.
  • Danimer Scientific Inc.
  • Eastman Chemical Co.
  • Fkur Kunststoff GmbH
  • Futerro SA
  • Green Dot Bioplastics Inc.
  • Kaneka Corp.
  • KURARAY Co. Ltd.
  • Mitsubishi Chemical Corp.
  • Neste Corp.
  • Northern Technologies International Corp.
  • Novamont S.p.A.
  • SK Chemicals Co. Ltd.
  • Toray Industries Inc.
  • TotalEnergies SE
  • Trinseo PLC
.

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Research Analysis Overview

The compostable plastic market is experiencing significant growth due to the rising environmental awareness and consumer concerns regarding the use of conventional plastics, particularly in the foodservice industry. This trend is driven by the increasing availability of environmentally friendly alternatives, such as compostable plastic packaging made from bio-based materials like corn starch, sugarcane feedstock, and polylactic acid (PLA). These materials are extracted and refined using green procurement policies, which prioritize the use of renewable resources over petrochemical counterparts. Governmental initiatives and municipal waste management programs are also promoting the use of biodegradable plastics and compostable containers, bags, and silverware. The BS N13432 standard is a key certification for these products, ensuring they meet the necessary requirements for compostability. The shift towards sustainable and eco-friendly solutions is expected to continue, with the market for biobased products projected to expand in the Medical, Electronics, and other industries.

Market Research Overview

The compostable plastic market is experiencing significant growth due to the rising environmental awareness and ethical waste management practices in various industries, including Healthcare, Homecare, and the e-commerce industry. Compostable plastic packaging, made from biobased materials such as corn starch, plant-based materials, and polylactic acid (PLA), is gaining popularity as an environmentally friendly alternative to conventional plastics. Key applications of compostable plastic include mailing bags, shipping materials, and compostable containers for groceries, restaurants, and temporary implants in surgeries. The use of compostable plastic in drug delivery systems and medical devices is also increasing. Material technology advancements have led to the development of biodegradable insulation and construction materials, further expanding the market for compostable plastic. The BS N13432 standard for compostable plastics ensures that these products meet the necessary environmental requirements for biodegradation. Governmental initiatives and green procurement policies are driving the adoption of compostable plastic, reducing the carbon footprint of transportation and plastic pollution. The market for compostable plastic is expected to continue growing as consumers become more aware of the environmental concerns associated with conventional plastics.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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