The global compostable foodservice packaging market is forecast to attain a valuation of USD 18.9 billion in 2023. Total compostable foodservice packaging sales are projected to surge at a CAGR of 4.5% between 2023 and 2033, totaling a colossal valuation of USD 29.3 billion by 2033.
Growing demand for compostable packaging solutions across restaurants, cafes, hotels, and other establishments due to their sustainable and eco-friendly nature is projected to boost the global market forward during the forecast period.
Global compostable foodservice packaging sales are slated to surge rapidly over the next ten years with the top 3 countries holding around 40% to 45% of the market in 2023.
Increasing non-chain restaurants across the global boost the demand for foodservice packaging including compostable foodservice packaging. The target segment is expected to remain the leading segment in the compostable foodservice packaging industry holding around 27% of the market value share by the end of 2023.
With the ban on single-use plastic products along with government regulations towards sustainability, the global compostable foodservice packaging market is poised to create an absolute incremental growth opportunity of USD 11.3 billion during the assessment period.
Compostable foodservice packaging refers to environmentally friendly packaging made from various plant-based materials such as wood pulp, bagasse, paper & paperboard, and bio-plastics. This type of packaging has gained wider popularity across foodservice industry during the last few years and the trend is expected to further escalate over the assessment period.
Rising concerns regarding the devastating effects of plastic on environment and living beings is compelling end-user such as restaurants and hotels to shift their preference from conventional plastic packing solutions to eco-friendly ones. This is creating a conducive environment for the development of compostable foodservice packaging industry.
Rapid growth of e-commerce sector coupled with rise in online food orders are expected to fuel compostable foodservice packaging sales during the projection period. FMI predicts the compostable foodservice packaging industry is to expand 1.5 times the current market value during the forecast period.
| Attribute | Key Insights |
|---|---|
| Compostable Foodservice Packaging Market Estimated Value (2023) | USD 18.9 billion |
| Projected Market Value (2033) | USD 29.3 billion |
| Value CAGR (2023 to 2033) | 4.5% |
| Collective Value Share: Top 5 Companies (2022A) | 10% to 20% |
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
The global market for compostable foodservice packaging witnessed a sluggish CAGR of 2.6% during the historic period (2017 to 2022) and reached a valuation of around USD 18.0 billion at the end of 2022. However, between 2023 and 2033, a steady CAGR of 4.5% has been estimated by Future Market Insights for the worldwide compostable foodservice packaging industry
Rapid transition from conventional plastic foodservice packaging towards compostable one is a key factor providing impetus to the global compostable foodservice market.
The term "compostable" refers to a product that can decompose into carbon dioxide, water, inorganic compounds, and biomass at a rate equivalent to paper, disintegrate by at least 90% of its original mass within 180 days, and leave behind no toxic residues. These products are often certified by a third-party certification system, Biodegradable Products Institute (BPI).
Compostable foodservice packaging solutions include single-use plates, trays, cups, bowls, bags, wraps, cutlery, etc., that can be composted and are used by restaurants and other establishments that offer prepared foods and beverages.
The development of compostable foodservice ware is in its initial stage of development. However, as government’s crackdown on single-use plastic usage continue to escalate, compostable foodservice packaging is expected to make strides in the foodservice packaging industry
The businesses are thriving even as they wait for more composting facilities to be built around the regions due to the obvious environmental advantages and rising consumer demand. There are a select few businesses that operate in disruptive and inventive marketplaces, keeping up with the development and expansion of an exciting future. In the manufacturing process, compostable items consume less water, utilize less energy, and emit less greenhouse gas. This holds true for both goods derived from plant fiber and biodegradable bioplastics.
Penetration of Online Food Delivery Platforms Facilitating Compostable Foodservice Packaging Sales
With robust growth of foodservice industry and penetration of e-commerce, the distribution medium has gradually shifted to online food ordering and delivery. This caters to a wider set of customers since food is delivered at home and requires no customer effort. It has also given rise to food delivery companies that also deliver things like groceries and stationery within minutes.
After the onset of the COVID-19 pandemic, most customers preferred getting food delivered rather than going to food outlets/restaurants to avoid catching the virus from other customers. This has facilitated the growth of online food delivery platforms which in turn is creating opportunities for compostable foodservice packaging manufacturers.
E-commerce has also reduced long customer queues since a lot of customers can place an order at the same time rather than waiting for their turn. Online food delivery has made sure that customers have a satisfactory experience with food and restaurants. They have the option to complain, ask for a refund, and rate the food establishment. Increasing penetration of e-commerce and rise in online food delivery start-ups are expected to aid in the expansion of the global compostable foodservice packaging industry over the forecast period.
Principal Consultant
| Country | USA |
|---|---|
| Market Share (2023) | 22.0% |
| Market Share (2033) | 20.2% |
| Basis Points (BPS) Analysis | -170 |
| Country | China |
|---|---|
| Market Share (2023) | 9.8% |
| Market Share (2033) | 11.4% |
| Basis Points (BPS) Analysis | 150 |
| Country | Germany |
|---|---|
| Market Share (2023) | 5.8% |
| Market Share (2033) | 5.2% |
| Basis Points (BPS) Analysis | -60 |
| Country | India |
|---|---|
| Market Share (2023) | 5.7% |
| Market Share (2033) | 6.9% |
| Basis Points (BPS) Analysis | 120 |
| Country | Italy |
|---|---|
| Market Share (2023) | 4.9% |
| Market Share (2033) | 4.5% |
| Basis Points (BPS) Analysis | -40 |
Single-use Plastic Ban in Germany Boosting Compostable Foodservice Packaging Sales
According to Future Market Insights’ latest report, Germany’s compostable foodservice packaging market is poised to accelerate at 3.1% CAGR during the forecast period generating lucrative revenues by the end of 2033. Currently, Germany holds around 5.8% share of the global market.
Growing demand for eco-friendly and sustainable packaging solutions and implementation of stringent regulations on plastic usage are a few key factors driving compostable foodservice packaging sales across Germany.
The ban on single-use plastic products to reduce plastic waste in 2021 by the European government in countries like Germany, Spain, the United Kingdom, and others has created a conducive environment for the development compostable foodservice packaging industry.
End users such as restaurants and cafes across Germany are rapidly switching to compostable foodservice packaging solutions to attract more and more customers as well as to comply with government regulations. This will continue to fuel sales of compostable foodservice packaging over the next ten years.
Consumer Preference for Sustainable Packaging Elevating Demand in the USA Market
The USA compostable foodservice packaging market is expected to create a growth opportunity of USD 582.7 million during the forecast period, making it the most dominant market globally. By 2033, the USA is anticipated to account for around 20.2% share of the worldwide compostable foodservice packaging industry.
Growth in the USA market is driven by rising preference for sustainable packaging solutions and expanding foodservice sector in the country. According to the USA Department Of Agriculture (USDA), food worth USD 2.12 trillion was supplied by the food service industry and food retailing industries in 2021. This rapid expansion of the food & food service industry will continue to act as a catalyst fuelling compostable foodservice packaging sales in the country.
Subsequently, enforcement of strict regulations by government and other regulatory bodies to curb the usage of plastic packaging will create lucrative opportunities for compostable foodservice packaging manufacturers across the USA during the forthcoming decade.
Increasing Restaurants and Need for Reducing Plastic Waste Making India a Promising Market
As per FMI, India’s compostable foodservice packaging market is projected to expand 1.9 times the current market value during the projection period of 2023 and 2033. The growing foodservice industry in India is a key factor augmenting sales of compostable foodservice packaging.
In recent years, there has been a dramatic rise in restaurants and cafes in India due rapid population growth, changing lifestyles and eating habits, and rising disposable incomes. With more than 5 lakh restaurants, the Indian restaurant industry is currently valued at USD 4 billion as per the National Restaurant Association of India (NRAI).
As most of these restaurants are shifting their preference towards eco-friendly packaging solutions, demand for compostable foodservice packaging is set to rise at a healthy pace across India during the projection period.
Manufacturers Prefer Paper and Paperboard Material for Making Compostable Foodservice Packaging
Based on material type, the global market for compostable foodservice packaging is segmented into plastic, paper & paperboard, and bagasse & seaweed. Among these, paper & paperboard segment is projected to accelerate at a CAGR of 5.5% during the forecast period (2023 to 2033).
This is attributed to rising demand for eco-friendly and sustainable packaging solutions globally and shifting focus of compostable foodservice manufacturing companies towards using paper and paperboard materials for making foodservice packaging.
Compostable foodservice packaging manufacturers mainly prefer paper & paperboard material as it is recyclable, sustainable, and eco-friendly. The abundant availability of paper & paperboard material makes it popular among the foodservice packaging manufacturers. Several end users are utilizing paper & paperboard packaging for protecting and storing hot and cold food products.
Bagasse & seaweed segment is also expected to witness healthy growth during the projection period owing to the rising popularity of bagasse packaging across foodservice industry.
Composable Cups Remain the Top Selling Packaging Type
According to Future Market Insights, the cups segment is estimated to hold around 25% value share of the global compostable foodservice packaging industry by the end of 2033. The surge in consumption of beverages such as coffee, hot chocolates, and others at café or kiosks augment the sales of compostable foodservice packaging including compostable cups.
Similarly, growing usage of compostable cups across households and quick-service restaurants as ideal alternatives to plastic ones will boost growth of the target segment during the assessment period.
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
Leading manufacturers of compostable foodservice packaging are trying to expand their presence and resources through acquisitions and partnership strategies. They are also focusing on offering innovative products to address sustainability concerns.
For instance:
| Attribute | Details |
|---|---|
| Estimated Market Size (2023) | USD 18.9 billion |
| Projected Market Size (2033) | USD 29.3 billion |
| Anticipated Growth Rate (2023 to 2033) | 4.5% CAGR |
| Base Year for Estimation | 2023 |
| Historical Dataa | 2017 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD Million, Volume in Units and CAGR from 2023 to 2033 |
| Segment Covered | Packaging Type, Material Type, End Use, Region |
| Regions Covered | North America; Latin America; East Asia; South Asia & Pacific; Western Europe; Eastern Europe; Central Asia; Russia & Belarus; Balkan Countries; Baltic Countries; Middle East and Africa (MEA) |
| Key Countries Profiled | USA, Canada, Brazil, Mexico, Germany, Italy, France, United Kingdom, Spain, China, Japan, India, Australia & New Zealand, GCC Countries, South Africa |
| Key Companies Profiled | Huhtamaki Oyj; Stora Enso Oyj; Georgia-Pacific LLC; WestRock Company; Mondi Group; Berry Global Group; Smurfit Kappa Group plc; Pactiv LLC; Genpak, LLC; Karat Packaging Inc.; Clearwater Paper Corporation; Kruger Inc.; Vegware Ltd.; Ultra Green Packaging Inc.; Verterra Dinnerware Private Limited; SEOIL Corporation; Biopac (United Kingdom) Ltd. (Duni); Eco-Products, Inc.; Sabert Corporation; Fabri Kal |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis |
Plastic
Paper & Paperboard
Bagasse & Seaweed
The global compostable food service packaging market value is estimated to reach USD 18.9 billion in 2023.
Huhtamaki, Stora Enso, and Georgia-Pacific are some top players in the global market.
The regional market share of the United States in 2023 is expected to be around 22%.
Germany is projected to possess almost 5.8% of the global market share in 2023.
The demand for compostable food service cups could lead to a one-fourth market share in 2023.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Packaging Type 5.1. Plates 5.2. Trays 5.3. Bowls 5.4. Cups 5.5. Clamshell 5.6. Cutlery 5.7. Pouches & Sachets 5.8. Others (Wraps, Straws, Cup Carriers, etc.) 6. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Material Type 6.1. Plastic 6.1.1. PLA 6.1.2. PHA 6.1.3. PBS 6.1.4. PBAT 6.1.5. Starch Blends 6.1.6. Other Plastics 6.2. Paper & Paperboard 6.2.1. Coated Unbleached 6.2.2. Molded Fiber 6.2.3. Other Grades 6.3. Bagasse & Seaweed 7. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By End Use 7.1. Chain Restaurants 7.2. Non-Chain Restaurants 7.3. Chain Café 7.4. Non-Chain Café 7.5. Delivery Catering 7.6. Independent Sellers/ Kiosks 7.7. Others (FMCG, Hotels, Retailers) 8. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. East Asia 8.4. South Asia & Pacific 8.5. Western Europe 8.6. Eastern Europe 8.7. Central Asia 8.8. Russia & Belarus 8.9. Balkan Countries 8.10. Baltic Countries 9. North America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 11. East Asia Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia & Pacific Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 13. Western Europe Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 14. Eastern Europe Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 15. Central Asia Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 16. Russia & Belarus Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 17. Balkan Countries Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 18. Baltic Countries Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 19. Middle East & Africa Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 20. Country wise Market Analysis 21. Market Structure Analysis 22. Competition Analysis 22.1. Huhtamaki Oyj 22.2. Stora Enso Oyj 22.3. Georgia-Pacific LLC 22.4. WestRock Company 22.5. Mondi Group 22.6. Berry Global Group 22.7. Smurfit Kappa Group plc 22.8. Pactiv LLC 22.9. Genpak, LLC 22.10. SEOIL Corporation 22.11. Karat Packaging Inc. 22.12. Clearwater Paper Corporation 22.13. Kruger Inc. 22.14. Vegware Ltd. 22.15. Biopac (United Kingdom) Ltd. (Duni) 22.16. Ultra Green Packaging Inc. 22.17. Eco-Products, Inc. 22.18. Sabert Corporation 22.19. Fabri Kal 22.20. Verterra Dinnerware Private Limited 23. Assumptions and Acronyms Used 24. Research Methodology
Explore Packaging Insights
View Reports
Compostable Foodservice Packaging Market
