The global compostable plastic packaging material market size is expected to be valued at USD 1.89 billion in 2023. Advancements in composting infrastructure, bolsters the overall scope of the compostable plastic packaging material market, which is projected to grow at a CAGR of 5.2% between 2023 and 2033, totaling around USD 3.1 billion by 2033.
| Data Points | Key Statistics |
|---|---|
| Compostable Plastic Packaging Material Market Value 2023 | USD 1.89 billion |
| Compostable Plastic Packaging Material Market Projected Value (2033) | USD 3.1 billion |
| Compostable Plastic Packaging Material Market CAGR (2023 to 2033) | 5.2% |
Technological advancements play a crucial role in boosting the growth of the compostable plastic packaging material market. Over the years, significant progress has been made in the development of innovative formulations and manufacturing processes, leading to improved performance, cost-effectiveness, and overall functionality of compostable plastics.
One of the key areas of advancement is the formulation of compostable plastic materials. Manufacturers are investing in research and development to create new and improved formulations that offer enhanced mechanical properties, barrier properties, and degradation characteristics.
Compostable plastics, by incorporating additives and modifying the composition, can now exhibit properties such as increased strength, flexibility, heat resistance, and moisture barrier capabilities. The advancements make compostable plastics suitable for a broader range of applications, including food packaging, personal care products, and industrial packaging.
Manufacturing processes have also undergone significant advancements, enabling more efficient and scalable production of compostable plastic packaging materials. Technological innovations have streamlined the production processes, allowing for cost-effective mass production.
Improved extrusion, molding, and lamination techniques enable manufacturers to produce compostable plastic films, sheets, and containers with consistent quality, precise dimensions, and customized features. Advanced manufacturing technologies have also contributed to reducing production waste and energy consumption, making the overall manufacturing process more sustainable.
Advancements in composting technologies have facilitated the proper disposal and degradation of compostable plastic packaging materials. Composting facilities equipped with advanced processes and systems can efficiently break down compostable plastics, converting them into valuable compost or biogas.
The technologies ensure that compostable plastics can undergo a complete and environmentally friendly degradation cycle, further enhancing their sustainability credentials.
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The global demand for compostable plastic packaging material is projected to increase at a CAGR of 3.0% during the forecast period between 2018 and 2022, reaching a total of USD 3.1 billion in 2033.
According to Future Market Insights, a market research and competitive intelligence provider, the compostable plastic packaging material market was valued at USD 1.8 billion in 2022. The global compostable plastic packaging material market, from 2018 to 2022, witnessed steady growth, owing to the increasing environmental awareness, which is a significant factor driving the market growth.
There is a heightened focus on finding sustainable alternatives that minimize the environmental impact of packaging materials, with growing concerns about plastic pollution.
Compostable plastic packaging materials are seen as a more environmentally friendly option compared to conventional plastics because of their ability to break down into natural elements through composting processes. The materials are typically derived from renewable resources such as corn starch, sugarcane, or cellulose, which reduces the reliance on fossil fuels and non-renewable resources.
One of the primary advantages of compostable plastics is their ability to undergo degradation in composting environments. Composting involves the breakdown of organic materials into nutrient-rich compost through the action of microorganisms.
Compostable plastics can be included in industrial composting processes, where they break down into carbon dioxide, water, and organic matter, leaving behind no harmful residues. The natural decomposition process ensures that compostable plastics do not persist in the environment for extended periods, minimizing their impact on ecosystems.
Consumers and businesses, by choosing compostable plastic packaging materials, can contribute to reducing plastic waste and the accumulation of non-biodegradable materials in landfills and natural habitats, which aligns with the growing environmental awareness and the global efforts to promote a circular economy and reduce plastic pollution.
The use of compostable plastics can help decrease greenhouse gas emissions associated with traditional plastic production and disposal. The production of compostable plastics has a lower carbon footprint compared to fossil-fuel-based plastics, as they are derived from renewable resources.
The composting compostable plastics in specialized facilities can contribute to the production of biogas, which can be used as a renewable energy source.
Consumer Preference for Sustainable Packaging are Likely to be Beneficial for Market Growth
Consumer preference for sustainable packaging is a significant trend driving the demand for compostable plastic packaging materials. In recent years, there has been a notable shift in consumer behavior towards more environmentally friendly choices.
Consumers are becoming more aware of the detrimental effects of conventional plastic packaging on the environment, such as pollution, landfill waste, and harm to wildlife.
One of the key reasons for the growing preference for sustainable packaging is the increased awareness of plastic pollution and its impact on ecosystems.
Documentaries, media coverage, and campaigns have shed light on the plastic waste crisis, raising public consciousness about the need for sustainable alternatives. Consumers, as a result, are actively seeking products that are packaged in materials that have a minimal environmental impact.
Compostable plastic packaging materials offer a solution that resonates with consumers' sustainability concerns. The materials are designed to break down into natural elements through composting processes, leaving behind no harmful residues.
They are derived from renewable resources, such as plant-based materials or bio-based polymers, which have a lower carbon footprint compared to conventional plastics made from fossil fuels.
Consumers perceive compostable plastic packaging materials as a more sustainable choice because they contribute to reducing plastic waste and dependency on non-renewable resources. The materials align with the principles of the circular economy, as they can be composted and returned to the soil as valuable nutrients, closing the loop in the packaging life cycle.
Growing Adoption by Industries to Fuel the Market Growth
The increasing adoption of compostable plastic packaging materials by industries is a significant trend that is expected to boost the growth of the market. Several industries are recognizing the advantages of using these materials in their packaging solutions, particularly in sectors such as food and beverage, personal care, and e-commerce.
In the food and beverage industry, compostable plastic packaging materials offer numerous benefits. They provide excellent barrier properties, effectively preserving the freshness, flavor, and quality of food products. The materials can create a protective barrier against moisture, oxygen, and light, preventing spoilage and extending the shelf life of perishable goods.
Compostable plastic packaging is also suitable for various food packaging formats, including flexible pouches, trays, and wraps, allowing for convenient and sustainable packaging solutions.
The personal care industry is increasingly adopting compostable plastic packaging materials for products such as cosmetics, skincare, and hygiene products. Compostable plastic packaging offers a combination of functionality, aesthetics, and environmental sustainability. The materials can be molded into attractive and functional packaging designs, providing a visually appealing and user-friendly experience for consumers.
Compostable plastic packaging materials can be customized to meet specific product requirements, such as moisture resistance or UV protection, while still being eco-friendly and compostable.
The e-commerce industry has also witnessed a surge in the adoption of compostable plastic packaging materials. eCommerce companies are seeking alternatives to conventional plastic materials, with the rise in online shopping and the increasing need for sustainable packaging.
Compostable plastic packaging offers a solution that meets the demands of e-commerce logistics. The materials are lightweight, flexible, and durable, providing adequate protection during shipping while reducing packaging waste. Compostable plastic packaging is compatible with automated packaging systems, making it efficient and cost-effective for e-commerce operations.
PHA Material to take the Lion’s Share
The PHA material is anticipated to generate a sales valuation of USD 550.4 million by 2033. In the global market, PHA resins are projected to gain market share while other segments are expected to decline.
The decline is due to the rapid growth in the demand for PHA resins as they are compostable, cost-effective, have barrier properties and, has unique bio-compatibility and non-toxicity. The material is compostable in the marine environment. The segment is expected to hold a CAGR of 5.1% during the forecast period.
The Food Service Sector is expected to account for the Lion’s Share
The food service segment followed by the food & beverage segment cumulatively holds the market share of around 75% revenue in 2033 for the compostable plastic packaging material market.
The demand for compostable plastic packaging material is increasing rapidly, with the expansion of quick-service restaurants, venue and catering services, and food cafes, as well as due to growing concern towards sustainable and eco-friendly packaging. The segment is expected to hold a CAGR of 5.0% during the forecast period.
Rising Demand for Sustainable Solutions to Boost the Market Growth
In the latest FMI analysis, the United States is anticipated to hold around 86% of total sales in North America till 2033. According to the Compost Research & Education Foundation, growing awareness of sustainability is swiftly gaining momentum among consumers and businesses. The country is expected to hold a CAGR of 5.1% over the analysis period.
The compostable food service ware products should specify a logo signifying BPI that certifies the products meet ASTM D6400/D6868 standards ensure the products are labeled as compostable.
In the United States, the inclination towards sustainability, changing consumer behavior, and buying preferences towards eco-friendly products due to social responsibility and environmental effects enhance the compostable plastic packaging material demand.
Increase in FMCG Products to Boost the Market Growth
As per FMI insights, India is estimated to reach a valuation of USD 120.5 million by 2033. According to the Association of Compostable Products in India, the growing awareness and benefits from using sustainable and environmentally friendly products leaving no harmful footprints behinds after decomposing will enhance the significant growth of compostable plastic packaging material in India.
The quick expansion of supermarkets, increase in FMCG products, and paradigm shift in the e-commerce sector in India are expected to boost the compostable plastic packaging material. Changing lifestyles, a growing economy, and increased penetration of the internet and digital platform in India will change the food consumption habits of the people.
The increase in food ordering, and ready-to-eat food packaging is anticipated to show a remarkable growth for compostable plastic packaging material. In India's developing economy, the growing middle class increases awareness towards environmental risks driving the trend to use compostable plastic packaging material. The country is expected to expand at a CAGR of 5.0% over the analysis period.
Compostable plastic packaging material market startup players are adopting various marketing strategies such as new product launches, geographical expansion, merger and acquisitions, partnerships and collaboration to create a larger customer base. For instance,
Key players in the compostable plastic packaging material market are strongly focusing on profit generation from their existing product portfolios along while exploring potential new applications.
The players are emphasizing on increasing their compostable plastic packaging material production capacities, to cater to the demand from numerous end use industries. Prominent players are also pushing for geographical expansion to decrease the dependency on imported compostable plastic packaging material.
Recent Developments
| Attributes | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD billion for value |
| Key Regions Covered | North America; Latin America; Western Europe; Eastern Europe; East Asia; South Asia & Pacific; Middle East & Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, Poland, Russia, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC Countries, South Africa, Israel |
| Key Segments Covered | Material, Application, End User Industry, Region |
| Key Companies Profiled | BASF SE; Kaneka Corporation; FKuR Kunststoff GmbH; Cardia Bioplastics; Novamont S.p.A.; Danimer Scientific LLC; Grabio Greentech Corporation; Northern Technologies International Corporation; NatureWorks LLC; S.K. Chemicals Co., Ltd.; Minima Technology Co. Ltd.; Biotec Pvt. Ltd.; Green Dot Holdings LLC |
| Customization & Pricing | Available upon Request |
The global compostable plastic packaging material market is expected to grow at a 5.2% CAGR from 2023 to 2033
By 2023, the global compostable plastic packaging material market is estimated to gain USD 1.89 billion
By 2033, the compostable plastic packaging material market valuation can reach a sum of USD 3.1 billion
In 2033, United States is expected to hold a CAGR of 5.1% of the market during the forecast period
The most popular material segment is PHA, and is expected to witness a CAGR of 5.1% during the forecast period.
The most popular end-user industry is food & beverage and is expected to hold a CAGR of 5.0% during the forecast period.
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