Global Compostable Plastics Market Size, Share, and COVID-19 Impact Analysis, By Product (Polylactic Acid, Starch Blends, PBAT, PBS, and Others), By End Use (Packaging, Agriculture, Consumer Goods, Textile, Automotive & Transportation, Building & Construction, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 - 2035

Global Compostable Plastics Market Insights Forecasts to 2035

• The Global Compostable Plastics Market Size Was Estimated at USD 2171.6 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 10.2% from 2025 to 2035
• The Worldwide Compostable Plastics Market Size is Expected to Reach USD 6317.8 Million by 2035
• North America is expected to grow the fastest during the forecast period.

According to a research report published by Spherical Insights and Consulting, The Global Compostable Plastics Market Size was worth around USD 2171.6 Million in 2024 and is predicted to Grow to around USD 6317.8 million by 2035 with a compound annual growth rate (CAGR) of 10.2% from 2025 to 2035. Increasing prohibition against the use of single-use Plastics, environmental awareness, and green packaging are driving the growth in the compostable Plastics market. Several factors, including sustainable policy in governments, sustainability practices in organizations, and advancements in biological material, are responsible for the growing acceptance of compostable Plastics in all sectors.

Market Overview

The world market for compostable plastics is defined as substances that are biodegradable and come from renewable resources that can be broken down in a non-toxic manner. These materials are applicable in packaging, food service packaging, agricultural films, retail carrier bags, and paper tableware. The primary factor driving market growth is a growing concern for the environment and increasing legislation regarding plastic waste. Governments are imposing a ban on the use of plastics.

On the 17th of September 2024, a report from EY-ASSOCHAM suggested that there is a need for a BioPlastics Policy at the Indian Government level to make the country a world leader in the manufacture of BioPlastics. Subsidies and Research & Development support are encouraged, as suggested in the BioE3 policy, to encourage the production of compostable biopolymers and attain a net-zero carbon future faster. Opportunities lie in technological development, robust composting facilities, and increased usage in the food, agricultural, and healthcare sectors. Increased usage in emerging nations makes the future promising and helps in expanding the product in the global market. Major players in the global compostable Plastics market are BASF SE, NatureWorks LLC, Novamont S.p.A., Total Corbion PA, and Mitsubishi Chemical Group.

Report Coverage

This research report categorizes the compostable plastics market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the compostable plastics market. Recent market developments and competitive strategies, such as expansion, type launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the compostable plastics market. 

Driving Factors

The key factors that are encouraging the development of the compostable plastics market globally are the rising concern level of the environment, government taxes on single-use plastics, and education on sustainable packaging solutions. Taxes on single-use plastics and the banning of conventional plastics are encouraging companies to move towards compostable plastics. The rising demand among the food packaging, agriculture, and disposable service ware markets is further catalyzing the growth of the compostable Plastics market. Compostable plastics have been rendered more viable and inexpensive through research and development on bio-materials and adequate composting facilities.

Restraining Factors

The compostable plastics market, globally, is hampered by production costs, a paucity of facilities for composting in industry, and a lack of consumer knowledge pertaining to disposal. The performance deficits of compostable plastics compared to regular plastics, unclear policies, and problems of contamination in waste recycling streams slow down market development.

Market Segmentation

The compostable plastics market share is classified into product and end use.  

• The polylactic acid segment dominated the market in 2024, approximately 42% and is projected to grow at a substantial CAGR during the forecast period.

Based on the product, the compostable plastics market is divided into polylactic acid, starch blends, PBAT, PBS, and others. Among these, the polylactic acid segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. The market for compostable plastics is led by the polylactic acid segment. This is due to PLA being biodegradable and relatively less expensive. The increasing concern for sustainable development has witnessed a rise in the demand for biodegradable items. This is driving industries to adopt PLA as their preferred material. Additionally, the material has been adopted due to favorable market policies.

• The packaging segment accounted for the highest market revenue in 2024, approximately 60% and is anticipated to grow at a significant CAGR during the forecast period.

Based on the end use, the compostable plastics market is divided into packaging, agriculture, consumer goods, textile, automotive & transportation, building & construction, and others. Among these, the packaging segment accounted for the highest market revenue in 2024 and is anticipated to grow at a significant CAGR during the forecast period. In terms of growth, the packaging sector represented the largest contribution to the compostable plastics market, driven by rising demand for sustainable packaging options in the food service and retail sectors. The rise in consumer consciousness and increased regulations on the usage of single-use plastic packaging options are forcing businesses to resort to compostable packaging options.

 Regional Segment Analysis of the Compostable Plastics Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific is anticipated to hold the largest share of the compostable plastics market over the predicted timeframe.

Asia Pacific is anticipated to hold the largest share of the compostable plastics market over the predicted timeframe. The Asia Pacific is also expected to have the 40% market share for compostable plastics in 2024 because of the growing industrialization, urban population, and consumer demand for sustainable packaging materials. Regions such as China, India, and Japan are also fuelling the growth because of the government regulations on single-use plastics and the extended product responsibility scheme and incentives for bio-based materials. Growing e-commerce, food services, and retailing sectors are also increasing the demand for compostable plastics.

North America is expected to grow at a rapid CAGR in the compostable plastics market during the forecast period. The North American market is anticipated to have a 27% market share in the compostable plastic market, driven by a growing focus on the environment, tough regulations, and a push from governments in support of sustainable packaging. The United States of America and Canada have been prominent in this market, driven by EPR policies, a ban on single-use plastic, and demands from consumers to switch to sustainable commodities. The market has been driven, especially in the foodservice, retail, and e-commerce segments, where companies have been adopting certified compostable plastics.

The compostable plastics market is growing rapidly in the European region, mainly due to the strict laws against single-use plastics in countries such as Germany, France, and Italy, as per the EU Packaging and Packaging Waste Regulation (PPWR). The growing consciousness of consumers regarding the environment, along with initiatives from the government in the form of incentives for bio-based products, is mainly contributing to the adoption of compostable plastics in Europe, thus emerging as the prominent market in the future.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the compostable plastics market, along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• NatureWorks LLC
• BASF SE
• Novamont S.p.A.
• Danimer Scientific
• Total Corbion PA
• Mitsubishi Chemical Group
• Eastman Chemical Company
• Green Dot Bioplastics
• Sulzer Ltd
• FKuR Kunststoff GmbH
• Evonik Industries AG
• Biome Bioplastics
• Toray Industries, Inc.
• Plantic Technologies
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In September 2024, Danimer Scientific and Homelink Eco-iTech launched home-compostable PHA-based extrusion coatings for paper cups. Using Danimer’s Nodax PHA, the cups are fully compostable, repulpable, and replace polyethylene as a liquid barrier, offering a sustainable alternative for disposable tableware in both home and industrial settings.

• In April 2024, Eastman and Sealed Air launched a compostable, lightweight tray for protein packaging, replacing polystyrene foam. Compatible with existing industrial equipment, the tray complements Sealed Air’s CRYOVAC compostable overwrap, already performing successfully in multiple market applications.

• In November 2023, Sulzer Chemtech launched CAPSULTM PCL technology, a fully integrated, continuous process for producing high-quality, biodegradable PCL at competitive rates. Complementing existing PLA offerings, it supports diverse applications including packaging, 3D printing, footwear, agricultural films, textiles, and medical devices, promoting broader adoption of compostable biopolymers.

• In October 2023, Danimer Scientific launched home-compostable retail packaging for fruits and vegetables, developed with BIOLO and Bolthouse Farms. The initiative highlights Danimer’s focus on biodegradable materials, offering sustainable packaging solutions for fresh produce while supporting environmentally friendly practices in retail and food supply chains.

• In September 2023, Mitsubishi Chemical Group introduced its BioPBS bio-based compostable polymer in EN TEA teabag pouches, used in the sealant layer and zipper closure. BioPBS offers low-temperature heat sealability, flexibility, and natural biodegradation, enhancing sustainable packaging for food products while reducing environmental impact.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the compostable plastics market based on the below-mentioned segments:

Global Compostable Plastics Market, By Product

• Polylactic Acid
• Starch Blends
• PBAT
• PBS
• Others

Global Compostable Plastics Market, By End Use

• Packaging
• Agriculture
• Consumer Goods
• Textile
• Automotive & Transportation
• Building & Construction
• Others

Global Compostable Plastics Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa