The market for compostable foodservice packaging is estimated to generate a market size of USD 19,765.5 million in 2025 and would increase to USD 30,695.5 million by 2035. It is expected to increase its sales at a CAGR of 4.5% over the forecast period 2025 to 2035. Revenue generated from compostable foodservice packaging in 2024 was USD 18,914.5 million.
Chain restaurants dominate the largest market share of 35% for compostable foodservice packaging because they have high volumes of takeaway and dine-in business. Fast-food brands, casual dining restaurants, and coffee chains are the largest adopters, spurred by government regulations aimed at minimizing plastic waste and corporate sustainability initiatives.
Chain restaurants take advantage of bulk buy contracts with packers, thus making green packaging cheaper. Increasing demand for plant-based and organic food has also spurred QSR brands to support environmentally friendly packaging. Consumers are also becoming more ready to pay extra for green packaging, so it becomes a brand differentiator.
Global Compostable Foodservice Packaging Industry Forecast
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 19,765.5 Million |
| Industry Value (2035F) | USD 30,695.5 Million |
| CAGR (2025 to 2035) | 4.5% |
Coated unbleached paper maintains the 50% market share within the paper & paperboard category because of its extensive usage in food packages, takeaway meals, and paper cups. Coated unbleached paper is a very highly demanded material that provides strength, toughness, and resistance to grease, which means it is quite suitable for food with fast servings, coffee cups, and clamshell packaging.
Relative to molded fiber, coated unbleached paper is smoother, more printable, and better able to hold liquids, making it more used in branded packaging for chain restaurants and coffee houses. Moreover, sustainability laws are compelling food service companies to use compostable and biodegradable packaging, with coated unbleached paper being preferred over plastic-lined options.
It is usually paired with water-based or plant-based coatings to enhance moisture resistance while keeping the environment-friendly disposal aspect intact. Large quick-service restaurants (QSRs), bakery chains, and beverage firms are embracing unbleached coated paper for sustainable branding.
The compostable foodservice packaging market will expand with lucrative opportunities during the forecast period, as it is estimated to provide an incremental opportunity of USD 11,781 million and will increase 1.6 times the current value by 2035.
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The below table presents the expected CAGR for the global compostable foodservice packaging market over several semi-annual periods spanning from 2024 to 2034.
| Particular | Value CAGR |
|---|---|
| H1 | 4.4% (2024 to 2034) |
| H2 | 4.6% (2024 to 2034) |
| H1 | 3.5% (2025 to 2035) |
| H2 | 5.5% (2025 to 2035) |
In the first half (H1) of the decade from 2024 to 2034, the business is predicted to surge at a CAGR of 4.4%, followed by a slightly higher growth rate of 4.6% 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 3.5% in the first half and remain relatively moderate at 5.5% 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.
Increasing Bans on Single-Use Plastics and Harsh Environmental Laws Boost the Market
Governments globally are enacting restrictions on single-use plastics and adhering to firm regulations for introducing sustainable alternative packages. Some nations like the USA., Canada, Germany, France, India, and China have imposed restrictions on using plastic straws, cutlery, cups, and foodservice containers.
The European Union Single-Use Plastics Directive (SUPD) and others just like it worldwide are forcing fast-food chains, restaurants, and cafeterias to convert from traditional food packaging to compostable foodservice containers using materials such as paperboard, bagasse, PLA (poly-lactic acid), and cornstarch. As more governments continue urging the adoption of green practices, the use of compostable packs is set to increase considerably in the global markets.
Expansion of Green Certifications Accelerates the Market Growth
More governments and institutions are encouraging green certifications and eco-labeling schemes, urging companies to employ compostable food packaging. Certifications such as BPI (Biodegradable Products Institute) in the United States, OK Compost in Europe, and the EN 13432 standard enable consumers and companies to recognize truly compostable packaging.
Restaurants, cafes, and food companies most often pursue these eco-labels as part of creating a positive brand perception and securing environmentally aware customers. Furthermore, retailers and food chains are required to follow sustainability guidelines, making it a wanted option to use certified biodegradable packaging. Demand for certified compostable packages is rising worldwide as consumers increasingly attempt to practice sustainable and environmental-friendly company policies.
High Costs and Lack of Composting Facilities Can Limit the Market
Among the greatest challenges in the way of compostable foodservice packaging is that production at a relatively greater cost is associated with its development compared to the standard plastic pack. These raw materials as well as the unique processing requirement come at higher prices for materials adopted for composting, such as PLA, cornstarch, and molded fiber, impacting prices for foodservice companies, especially smaller-sized players.
Furthermore, industrial composting infrastructure is still not available in most regions, which translates to compostable packaging going to landfills rather than being correctly composted. Lacking extensive waste management and composting infrastructure, the potential of compostable packaging cannot be fully achieved, hindering its market growth in some markets.
| Key Investment Area | Why It’s Critical for Future Growth |
|---|---|
| Sustainability & Biodegradable Materials | With rising prohibitions on single-use plastics, an investment in biodegradable materials such as PLA, bagasse, and molded fiber will be useful in complying with regulations as well as satisfying green consumers. |
| Durability & Performance | Making moisture, grease, and heat-resistant, compostable packaging will have to operate just as effectively as comparable conventional plastic or paper offerings within foodservice scenarios. |
| Economically Sustainable & Scalable Production | Manufacturing processes and raw material sourcing are optimized to lower costs, making compostable packaging more affordable for business use and consumer purchase. |
| Customization & Branding Opportunities | Providing brand name, printed, or shaped packaging will improve foodservice operators' branding along with the perception of sustainability. |
| Regulatory Compliance & Certifications | Compliance with international composability standards (e.g., ASTM D6400, EN 13432) will be essential for market acceptance and international expansion. |
The global compostable foodservice packaging market achieved a CAGR of 2.6% in the historical period of 2020 to 2024. Overall, the compostable foodservice packaging market performed well since it grew positively and reached USD 18,914.5 million in 2024 from USD 16,758.6 million in 2020.
The compostable foodservice packaging industry saw continuous growth between 2020 and 2024, influenced by rising consumer environmental awareness, increasing government laws prohibiting single-use plastics, and surging usage of plant-based and biodegradable packaging solutions.
| Market Aspect | 2020 to 2024 (Past Trends) |
|---|---|
| Market Growth | Steady growth driven by increasing bans on single-use plastics and rising consumer awareness of sustainability. |
| Material Trends | Predominantly plant-based materials such as PLA (poly-lactic acid), bagasse, and recycled paper. |
| Regulatory Environment | Stricter regulations on plastic use and increasing certification standards for composability |
| Technological Advancements | Development of heat-resistant and grease-resistant compostable materials for food packaging. |
| Consumer Demand | High demand from cafés, fast-food chains, and eco-conscious consumers seeking sustainable alternatives. |
| Sustainability Efforts | Rising focus on reducing landfill waste and improving industrial composting capabilities. |
| Market Aspect | 2025 to 2035 (Future Projections) |
|---|---|
| Market Growth | Strong growth fueled by government regulations, corporate sustainability commitments, and higher demand from food delivery and quick-service restaurants. |
| Material Trends | Advancements in compostable biopolymers, fiber-based packaging, and water-resistant coatings for enhanced durability. |
| Regulatory Environment | Global policies pushing for 100% compostable packaging in foodservice and improved waste management infrastructure. |
| Technological Advancements | Innovations in smart packaging, edible packaging, and improved composting compatibility for wider adoption. |
| Consumer Demand | Increasing preference for certified home-compostable, PFAS-free, and fully biodegradable packaging solutions. |
| Sustainability Efforts | Strong push for circular economy models, reusable packaging systems, and large-scale composting infrastructure. |
| Factor | Consumer Priorities (2020 to 2024) & (2025 to 2035) |
|---|---|
| Performance (Durability, Heat & Moisture Resistance, Strength) |
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| Product Availability & Convenience |
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| Cost & Pricing |
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| Reusability & Circular Economy |
|
| Food Safety & Hygiene |
|
| Factor | Manufacturer Priorities (2020 to 2024) & (2025 to 2035) |
|---|---|
| Performance (Durability, Heat & Moisture Resistance, Strength) |
|
| Product Availability & Convenience |
|
| Cost & Pricing |
|
| Reusability & Circular Economy |
|
| Food Safety & Hygiene |
|
During 2025 to 2035, the market for compostable foodservice packaging is forecast to grow with increasing applications across quick-service restaurants and food delivery chains, rising investments in new and long-lasting compostable materials, and greater inclination toward circular economy solutions that reduce waste and carbon footprint.
Tier 1 companies comprise market leaders capturing significant market share in global market. These market leaders are characterized by high production capacity and a wide 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 provide a wide range of series including recycling and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within tier 1 include Huhtamaki Oyj, Stora Enso Oyj, Georgia-Pacific LLC, WestRock Company, Mondi Group
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 Smurfit Kappa Group plc, Vegware Ltd., Ultra Green Packaging Inc., Verterra Dinnerware Private Limited, Biopac (United Kingdom) Ltd. (Duni), Eco-Products, Inc., Sabert Corporation, Fabri-Kal.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment. They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
| Region | 2020 to 2024 (Past Trends) |
|---|---|
| Latin America | Moderate growth, led by sustainability policies in Brazil, Mexico, and Argentina. |
| North America | High demand driven by bans on single-use plastics in the USA and Canada. |
| Europe | High consumer preference for compostable coffee cups, cutlery, and plates. |
| Middle East & Africa | Emerging market with rising sustainability focus in the UAE and South Africa. |
| Asia Pacific | Rapid market growth in China, Japan, and India due to rising awareness and regulations. |
| Region | 2025 to 2035 (Future Projections) |
|---|---|
| Latin America | Expansion of regional manufacturing to reduce reliance on imports. |
| North America | Continued regulatory push for compostable packaging in foodservice and delivery sectors. |
| Europe | Development of high-performance compostable coatings for grease and moisture resistance. |
| Middle East & Africa | Increased government support for compostable food packaging solutions. |
| Asia Pacific | Expansion of domestic bioplastic production to meet increasing demand. |
The section below covers the future forecast for the compostable foodservice packaging 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 expected to account for a CAGR of 3.4% through 2035. In Europe, Spain is projected to witness a CAGR of 4.1% by 2035.
| Country | Value CAGR (2025 to 2035) |
|---|---|
| USA | 3.4% |
| Germany | 3.0% |
| China | 5.4% |
| UK | 2.9% |
| Spain | 4.1% |
| India | 5.6% |
| Canada | 3.2% |
At the federal and state level in the US, tax incentives and tax credits are being given to businesses in order to render compostable food packaging more competitive. Single-use plastics are already prohibited in various states like Washington, California, and New York for compostable alternatives.
Giant corporations like McDonald's, Starbucks, and Whole Foods are also setting up sustainability targets, which are pressurizing the use of biodegradable packaging material. Increased demand for environmentally friendly consumers and corporate ESG agendas is stimulating the move away from non-recyclable containers, cups, and utensils toward compostable. With increased companies making their transitions in sympathy with green measures and sustainability policies, USA demand keeps growing for foodservice packaging which is compostable.
Increased demand for zero-waste restaurants, cafés, and sustainable eating ideas is creating increased demand for foodservice packaging that is compostable in Germany.
Individuals are highly concerned about the environment, and numerous individuals would prefer to dine at restaurants that provide food wrapped in biodegradable and compostable materials as opposed to plastic. There have been more zero-waste shops, organic cafes, and green take-out places in Berlin, Hamburg, and Munich, which all specialize in environmentally friendly food packaging.
The section contains information about the leading segments in the industry. In terms of material type, paper and paperboard are being estimated to account for a share of 42.8% by 2025. By packaging type, plates are projected to dominate by holding a share above 36.4% by the end 2025.
| Material Type | Market Share (2025) |
|---|---|
| Paper & Paperboard | 40% |
Paper & paperboard lead the market, constituting 40% of compostable foodservice packaging because of their renewability, recyclability, and versatility of use. Coated unbleached paper and molded fiber packaging are favorites with foodservice operators because of high strength, grease resistance, and sustainability acceptance. In contrast to bioplastics, whose degradability can be longer, paper products easily decompose in compost environments.
Large QSR brands, coffee chains, and airlines increasingly prefer paperboard trays, cups, and clamshells for cost and lightness considerations. Governments in several countries have legislated a ban on single-use plastics, creating demand for paper-based packaging’s.
Water-based coatings innovations have enhanced the moisture and oil resistance of compostable paper food containers to become a sound alternative to plastic-coated varieties. With increasing consumer consciousness and business sustainability strategies, paper & paperboard packaging will still dominate the market as the most used compostable material.
| Packaging Type | Market Share (2025) |
|---|---|
| Plates | 36.4% |
Plates maintain the greatest market share among compostable foodservice packaging as a result of strong demand within quick-service restaurants (QSRs), cafeterias, and catering companies. They are favored for use in single-service meal portions for fast-food chains, food courts, and catered events.
Paper plates and bagasse plates are most sought after, the benefits being longevity, heat retention, and composability. As opposed to the plastic or foam alternatives, the compostable plate degrades at a faster pace, conforming to green economy regulations and demand for environmentally friendly eating. Single-use plastics are being banned globally by governments, and biodegradable and reusable plate use is on the rise.
Key players of global compostable foodservice packaging 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
Key Developments in Compostable Foodservice Packaging Market:
| Manufacturer | Vendor Insights |
|---|---|
| Mondi Group | Mondi offers a range of compostable foodservice packaging products, focusing on combining functionality with environmental sustainability to meet the growing demand for eco-friendly packaging. |
| WestRock Company | WestRock provides innovative compostable packaging solutions for the foodservice sector, emphasizing the use of sustainable materials and designs that enhance product performance and environmental benefits. |
| Stora Enso Oyj | A leading provider of renewable solutions, Stora Enso develops compostable packaging materials for the foodservice industry, focusing on fiber-based products that reduce environmental impact. |
| Huhtamaki Oyj | A global leader in sustainable packaging solutions, Huhtamaki offers a comprehensive range of compostable foodservice packaging products, including cups, plates, and containers, emphasizing innovation and environmental responsibility. |
| Vegware Ltd. | Specializing in plant-based compostable foodservice packaging, Vegware provides an extensive line of products such as cutlery, straws, and takeaway boxes, designed to be composted along with food waste. |
Key Players in Compostable Foodservice Packaging Market
The global compostable foodservice packaging industry is projected to witness CAGR of 4.5% between 2025 and 2035.
The global compostable foodservice packaging industry stood at 18,914.5 million in 2024.
Global compostable foodservice packaging industry is anticipated to reach USD 30695.5 million by 2035 end.
East Asia is set to record a CAGR of 5.6% in assessment period.
The key players operating in the global compostable foodservice packaging industry include Huhtamaki Oyj, Stora Enso Oyj, Georgia-Pacific LLC, WestRock Company, Mondi Group.
The compostable foodservice packaging market is categorized based on packaging type into plates, trays, bowls, cups, clamshells, cutlery, pouches & sachets, and others, including wraps, straws, and cup carriers.
The market is segmented by material type into plastic, paper & paperboard, and bagasse & seaweed. The plastic segment includes PLA, PHA, PBS, PBAT, starch blends, and other plastics. The paper & paperboard segment is further divided into coated unbleached, molded fiber, and other grades.
The end-use market includes chain restaurants, non-chain restaurants, chain cafes, non-chain cafes, delivery catering, independent sellers/kiosks, and others, including FMCG, hotels, and retailers.
Key Countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe and Middle East & Africa are covered.
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Compostable Foodservice Packaging Market
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