The market size of compostable & biodegradable refuse bags is estimated to be worth USD 366.5 million in 2025 and is anticipated to reach a value of USD 756.3 million by 2035. Sales are projected to rise at a CAGR of 7.5% over the forecast period between 2025 and 2035. The revenue generated by compostable & biodegradable refuse bags in 2024 was USD 341.5 million.
Compostable & biodegradable refuse bags have very high usage in Retail & Consumer sector. This sector will capture over 55% of the compostable & biodegradable refuse bags market by 2035. Retail and consumer markets have now been open to using compostable as well as biodegradable trash bags. Retailers are taking up trend by offering consumers biodegradable trash bags that are not only harm-free but also sustainable.
Of course, still, many more are now out there trying to decrease their carbon footprint, especially in cities where the issues on the environment are highly prioritized. Most supermarkets and online shops sell these bags, and they are becoming more accessible and affordable as time goes by. This market segment will be sure to grow bigger as homes progress in using compostable trash bags.
Compostable & Biodegradable Refuse Bags Industry Forecast
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 366.5 million |
| Industry Value (2035F) | USD 756.3 million |
| CAGR (2025 to 2035) | 7.5% |
According to capacity segment, Compostable & biodegradable refuse bags with 7 to 20 gallon capacity are likely to account for over 42% of the market share over the forecast period. This size can perfectly utilize the kitchen bin, small office areas, or general waste collection, meeting the emerging needs for sustainable waste management.
Here, the consumer demands compostable or biodegradable bags in this size either for the ease of use or because they will break down more readily than traditional plastic or packaging film. As environmental concerns continue to push more individuals and businesses to reduce plastic use, smaller-capacity biodegradable bags are expected to remain the dominant choice for everyday refuse disposal.
The market of compostable & biodegradable refuse bags will grow with profitable prospects in the forecast period, as it is expected to offer an incremental opportunity of USD 414.8 million and will increase 2.2 times the existing value by 2035.
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The below table presents the expected CAGR for the global compostable & biodegradable refuse bags market over several semi-annual periods spanning from 2025 to 2035.
| Particular | Value CAGR |
|---|---|
| H1 | 7.3% (2024 to 2034) |
| H2 | 7.7% (2024 to 2034) |
| H1 | 6.4% (2025 to 2035) |
| H2 | 8.6% (2025 to 2035) |
In the first half (H1) of the decade from 2024 to 2033, the business is predicted to surge at a CAGR of 7.3%, followed by a slightly higher growth rate of 7.7% in the second half (H2) of the same decade. Moving into the subsequent period, from H1 2025 to H2 2035, the CAGR is projected to decrease slightly to 6.4% in the first half and remain relatively moderate at 8.6% in the second half. In the first half (H1) the market witnessed a decrease of 90 BPS while in the second half (H2), the market witnessed an increase of 90 BPS.
Stricter Regulation of Single-Use Plastics Accelerates the Market Growth
Changes are underway in governments across the globe-from Europe to North America-concerning single-use plastics to reduce pollution and environmental degradation. In the USA, Canada, and the European Union, new legislative proposals are being passed or strengthened to ban plastic bags or restrict their use and encourage biodegradable usage.
This legislative act is driving consumers and businesses towards finding compostable and biodegradable refuse bags as a compliance solution. The companies are also investing in the research and development of high-performance, cost-effective alternatives that conform to environmental requirements. A push from regulation, to reduce the plastic waste is what has helped the adoption of compostable and biodegradable refuse bags thereby growing the market.
Growing Popularity of Green Waste Management Practices Pushes the Market Growth
In several cities and local governments, curbside composting has been picking up, which engages the households and businesses in segregating organic waste from other regular trash collection. Changes toward more environmentally responsible waste disposal methods naturally boost demand for compostable refuse bags which can break down in composting systems without leaving harmful residues.
Waste management companies are investing in systems supporting organic waste composting, hence driving the demand for biodegradable alternatives. As this trend continues to rise, compostable and biodegradable refuse bags are becoming the core components of waste management strategies, thus boosting the market growth.
High Cost Compared to Traditional Plastic Bags May Restrict the Market.
The main restriction of the compostable and biodegradable refuse bags market is a higher price in comparison with regular plastic bags. Compostable bags are composed of materials like cornstarch, PLA, or other plant-based polymers, which have a higher cost of production as compared to conventional plastic bags.
This essentially translates to a higher price, which can quickly make biodegradable refuse bags less accessible to consumers, especially in price-sensitive markets. Besides that, in some regions, large-scale adoption may be slow because businesses and households may not readily switch to these bags because of their high price. Though the environmental benefits are quite substantial, the price barrier remains the biggest challenge to wider market growth.
The global compostable & biodegradable refuse bags market recorded a CAGR of 5.2% during the historical period between 2020 and 2024. Market growth of compostable & biodegradable refuse bags was positive as it reached a value of USD 341.5 million in 2024 from USD 279 million in 2020.
Compostable & biodegradable refuse bags market is gradually moving toward more environmentally friendly waste management solutions as consumers and businesses globally shift toward employing them. The bags, made up of renewable materials including cornstarch and PLA, among other biodegradable polymers, serve as alternatives to conventional plastic bags.
This growth of the market can be attributed to increasing awareness about environmental impact and rising regulation regarding plastic waste, and food service retailers seeking a greater proportion of green products also boost the market. This trend further gets aided by the initiatives from the government regarding policies that encourage using compostable and biodegradable products.
During the assessment period, global demand for compostable & biodegradable refuse bags is expected to grow strongly. The drivers for this are mainly technological advancements in compostable and biodegradable materials, rising focus on circular economy and waste reduction, rising awareness of environmental impact and plastic pollution, growth in organic and green label products.
| Market Aspect | 2019 to 2024 (Past Trends) |
|---|---|
| Market Growth | Moderate growth due to increasing environmental awareness |
| Consumer Awareness | Gradual rise in consumer awareness about environmental impact |
| Regulations & Policy Changes | Emerging regulations on plastic waste bans in several regions |
| Technological Advancements | Improvement in materials used, but still limited production capacity |
| Product Demand | Growing demand in developed nations; slower uptake in emerging markets |
| Market Segmentation | Primarily segmented into residential, commercial, and industrial sectors |
| Price Trends | Prices fluctuated due to variations in raw material costs |
| Competitive Landscape | Competitive market with both established brands and emerging startups |
| Raw Materials | Limited availability of high-quality raw materials for biodegradable bags |
| Environmental Impact | Awareness growing regarding the environmental benefits over plastic bags |
| Market Growth | Moderate growth due to increasing environmental awareness |
| Market Aspect | 2025 to 2035 (Future Projections) |
|---|---|
| Market Growth | Significant growth driven by stringent regulations and demand for eco-friendly products |
| Consumer Awareness | Widespread consumer demand for sustainability and eco-conscious products |
| Regulations & Policy Changes | Stricter laws worldwide, more countries adopting plastic bans and incentives for biodegradable alternatives |
| Technological Advancements | Enhanced biodegradable materials and efficient production technologies |
| Product Demand | Increased demand globally, particularly in emerging markets due to rising awareness and regulations |
| Market Segmentation | Expanding into various niches like retail packaging, foodservice, and industrial use |
| Price Trends | Potential for price stabilization as production scales and technology advances |
| Competitive Landscape | Highly competitive with a larger number of players, technological innovation, and global reach |
| Raw Materials | Improved access to raw materials, including agricultural waste, for more sustainable production |
| Environmental Impact | Strong reduction in plastic waste, with a significant shift towards zero-waste lifestyles |
| Market Growth | Significant growth driven by stringent regulations and demand for eco-friendly products |
Tier 1 companies essentially comprise market leaders with a large market share in the global market. These market leaders are characterized by high manufacturing capacity and a wide range of product portfolio. These market leaders are distinguished by their extensive expertise in manufacturing across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They offer a wide series of recycling and manufacturing using the latest technology and meeting the regulatory standards to provide the highest quality. Prominent companies within tier 1 include Vegware Global, Cedo Ltd., BioBag International AS, Clondalkin Group Holdings B.V.
Tier 2 companies include mid-size players having presence in specific regions and highly influencing the local market. These are characterized by a strong presence overseas and strong market knowledge. These market players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include Cardia Compostable, Plastiroll Oy Ltd, The Biodegradable Bag Company Ltd, The Compost Bag Company, Biotuff, Bharat Compostables, Crown Poly, EcoSafe Zero Waste
Tier 3 consists of the largest share of small-scale enterprises operating at the local presence and serving niche markets. These are small-scale players, and their focus is mainly on fulfilling the local market demands, hence classified within the tier 3 share segment. They are small-scale players and have a limited geographical reach. Tier 3, in this sense, is referred to as an unorganized market, which simply means a sector with less structure and formalization when compared to the organized competitors.
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| Region | 2019 to 2024 (Past Trends) |
|---|---|
| North America |
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| Latin America |
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| Europe |
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| Asia Pacific |
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| Middle East & Africa |
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| Region | 2025 to 2035 (Future Projections) |
|---|---|
| North America |
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| Latin America |
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| Europe |
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| Asia Pacific |
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| Middle East & Africa |
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The section below covers the future forecast for the compostable & biodegradable refuse bags market in terms of countries. Information on key countries in several parts of the globe, including North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe and MEA is provided. USA is anticipated to remain at the forefront in North America, with a CAGR of 6.4% through 2035. In Europe, Spain is projected to witness a CAGR 7.1% by 2035.
| Countries | Value CAGR (2025 to 2035) |
|---|---|
| United States | 6.4% |
| India | 8.6% |
| Germany | 6.1% |
| China | 8.4% |
| Spain | 7.1% |
| United Kingdom | 5.9% |
| Canada | 6.2% |
The government in Germany has implemented policies toward sustainability and green packaging solutions that are highly driving demand in terms of compostable and biodegradable refuse bags. Germany has been strongly committed to environmental regulations, with the German government setting quite ambitious recycling and composting targets as part of waste reduction and the recovery of more resources.
Government policies also push for the usage of eco-friendly packaging and solutions in waste management, such as compostable bags for organic wastes. Demand in Germany for such biodegradable bags has increased rapidly as especially in Germany's municipalities, municipal administrations have compelled their citizens through rules and regulations to mandatorily put their organic wastes in biodegradable bags. It also saw Germany as an especially awake customer population of consciousness of the problems against the environment.
The USA have begun programs that attempt to reduce the amount of waste thrown into landfills. It also encourages separation of food waste and yard waste into regular trash that could be composted. Composting is organic waste breaking down into rich soil. To make this work, people need safe-to-compost bags, like compostable refuse bags. Unlike plastic bags, these break down along with the organic waste. As more and more places in the USA introduce composting programs, demand for these biodegradable bags is increasing, keeping harmful plastics from landfills.
The section contains information about the leading segments in the industry. In terms of material type, PLA is estimated to account for a share of 42% by 2035. By thickness, 0 to 0.7 mil is projected to dominate by holding a share of 52% by the end 2035.
| Material Type | Market Share (2025) |
|---|---|
| PLA | 42% |
The PLA is a compostable and biodegradable refuse bag market leader. It has excellent features, as it is compostable, biodegradable, and of renewable origin. PLA sources are plant-based, for example, corn starch or sugarcane, thus replacing petroleum-based plastics sustainably. PLA is used to make compostable refuse bags, with functionalities provided at the balance between strength and environmental impact. PLA bags are highly in demand today in the food service industry, as well as in residential waste collection.
It is attributed to the possibility of biodegrading in industrial composting facilities. Following the growing awareness of consumers for eco-friendly products, it is considered much better if companies opt for PLA bags as a sustainable packaging alternative. In addition, the PLA bag adheres to the even tighter regulatory actions in curbing plastic waste within the environment. In this case, it will emerge as the dominant material within the refuse bag market.
| Thickness | Market Share (2025) |
|---|---|
| 0 to 0.7 mil | 52% |
The 0 to 0.7 mil thickness range is widely used in the compostable and biodegradable refuse bags market. It is cost-effective and suitable for light-duty waste collection. Their lightweight nature makes them ideal for consumers looking for affordable and environmentally friendly alternatives to traditional plastic bags. This range is highly favored by the eco-conscious consumer, as it makes a balance of sustainability with practicality.
The 0 to 0.7 mil bags are to degrade better in composting environments, with many consumers insisting on compostable and biodegradable solutions. This thickness is also often used for smaller bins or for specific kinds of wastes such as food scraps and, therefore, is very common for household and small business usage.
Key players of compostable & biodegradable refuse bags industry are developing and launching new products in the market. They are integrating with different firms and extending their geographical presence. Few of them are also collaborating and partnering with local brands and start-up companies for new product development.
Key Developments in Compostable & Biodegradable Refuse Bags Market
Product Launch
In March 2024, Eco-Products added a line of compostable paper bags and sandwich wraps to its GreenStripe® line. These products are ideal for supermarkets, restaurants, and bakeries and are certified by the Biodegradable Products Institute (BPI) with no added PFAS.
Product Launch
Plastno released compostable bags made from organic materials that would decompose over weeks. It is the equivalent of a biodegradable bag that would prove to be tough like other plastic bags while ensuring an environmentally friendly option.
Acquisition
BioBag Group was bought by Novamont, bringing more strength and leadership to it in the international bioplastics and compostable products market, furthering efforts in the field of integrated solution development for collection and composting of organic wastes.
Product Launch
BioBag International launched a new line of compostable waste bags made from a blend of plant-based materials, designed to offer enhanced strength and durability for household and commercial use.
Certification
Duro, a brand under Novolex, received BPI certification for over 100 of its paper bags and sacks. This certification assures customers that the packaging can be processed in commercial composting facilities.
In terms of capacity, the compostable & biodegradable refuse bags market is divided into 7 to 20 gallons, 20 to 30 gallons, 30 to 40 gallons, 40 to 55 gallons and above 55 gallons.
In terms of product type, the compostable & biodegradable refuse bags market is segmented into biodegradable and compostable.
In terms of material type, the compostable & biodegradable refuse bags market is PLA, PBS, PBAT, PHA, Starch Blends, Cellophane and Paper
In terms of thickness, the compostable & biodegradable refuse bags market is segmented into 0 to 0.7 mil, 0.7 to 0.9 mil, 0.9 to 1.5 mil and above 1.5 mil
Some of end users in the compostable & biodegradable refuse bags include Retail & Consumer, Industrial and Institutional.
Key countries of North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe, Middle East and Africa are covered.
The compostable & biodegradable refuse bags industry is projected to witness CAGR of 7.5% between 2025 and 2035.
The global compostable & biodegradable refuse bags industry stood at USD 341.5 million in 2024.
Global compostable & biodegradable refuse bags industry is anticipated to reach USD 756.3 million by 2035 end.
South Asia & Pacific is set to record a CAGR of 8.6% in assessment period.
The key players operating in the compostable & biodegradable refuse bags industry are Vegware Global, Cedo Ltd., BioBag International AS, Clondalkin Group Holdings B.V.
| Market Estimated Size in 2023 | USD 5.2 billion |
|---|---|
| Projected Market Value in 2033 | USD 13.6 billion |
| Value-based CAGR from 2023 to 2033 | 10% |
| Market Estimated Size (2022E) | USD 930.5 Million |
|---|---|
| Projected Market Valuation (2032F) | USD 5,893.7 Million |
| Value-based CAGR (2022 to 2032) | 20.3% |
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