As per MRFR analysis, the US Compostable Plastic Packaging Market Size was estimated at 226.35 (USD Million) in 2023. The US Compostable Plastic Packaging Market Industry is expected to grow from 238.8(USD Million) in 2024 to 550 (USD Million) by 2035. The US Compostable Plastic Packaging Market CAGR (growth rate) is expected to be around 7.88% during the forecast period (2025 - 2035).
The US Compostable Plastic Packaging Market is experiencing significant growth driven by increasing awareness about environmental sustainability among consumers and businesses. The rising concern over plastic waste and its impact on the environment is encouraging industries to adopt more eco-friendly packaging solutions.
In recent times, more states and local governments in the US have enacted policies banning single-use plastics, which further fuels demand for compostable alternatives. Organizations promoting sustainable practices are gaining traction, and consumers are increasingly seeking products that align with their values.
Opportunities in the US market include the potential for innovation in material science to improve the functionality and performance of compostable plastics. Businesses can focus on developing new blends and formulations that enhance biodegradability and compostability in diverse environments.
Collaborations between manufacturers and agricultural sectors can lead to new applications and markets for compostable plastics, capturing consumer interest in products that offer both convenience and sustainability. Moreover, the importance of labeling and certification for compostable products is growing, with consumers looking for clear, trustworthy information to make informed choices.
The trend towards circular economy practices is reshaping how companies approach packaging solutions, leading to increased investment in research and development. As consumer demand for transparency and sustainable choices continues to grow, companies in the US are likely to emphasize sustainable sourcing and partnerships with composting facilities to ensure that their products contribute positively to waste reduction and environmental conservation efforts.
The convergence of these trends reflects a robust shift towards sustainable packaging in the US, highlighting meaningful progress in addressing the plastic crisis.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The US Compostable Plastic Packaging Market is experiencing significant growth due to stringent environmental regulations aimed at reducing plastic waste. The US Environmental Protection Agency (EPA) reported a 14% increase in municipal solid waste between 2010 and 2018, highlighting the urgent need for sustainable packaging solutions.
In response, many states have enacted legislation to limit single-use plastics, prompting companies to shift toward compostable alternatives. For instance, California's recent ban on single-use plastic straws has spurred innovations in compostable packaging, driven by organizations such as the Biodegradable Products Institute (BPI), which has seen an increase in compostable product certifications.
This regulatory pressure is expected to catalyze the demand for compostable packaging solutions, thus significantly contributing to the growth of the US Compostable Plastic Packaging Market.
Consumer awareness regarding environmental issues is increasingly influencing purchasing decisions in the US. According to a survey conducted by the Nielsen Company, 81% of respondents feel strongly that companies should help improve the environment. This has led to an uptick in demand for compostable packaging options.
Major retailers such as Starbucks have committed to transitioning away from plastic packaging, which, in turn, encourages manufacturers to invest in sustainable solutions. The push for sustainability directly correlates with the projected growth in the US Compostable Plastic Packaging Market Industry, as businesses seek to align with consumer expectations and environmental initiatives.
Technological developments in bioplastics and compostable materials are driving innovation within the US Compostable Plastic Packaging Market Industry. Research and Development (R&D) in polymer chemistry are leading to the creation of new materials that not only meet performance standards but also degrade efficiently in a composting environment.
The USDA's National Institute of Food and Agriculture has funded projects focusing on biopolymer development, which creates viable alternatives to traditional plastics. Companies leveraging these advancements, such as Biopak, are seeing increased investment from consumers and brands looking to adopt eco-friendly practices.
This technological evolution is crucial for fulfilling the growing needs of environmentally conscious consumers and regulatory standards.
The US Compostable Plastic Packaging Market is increasingly evolving, particularly within the Material segment which encompasses a variety of eco-friendly options. The major materials in this segment, including PBAT, PBS, PLA, PHA, and Starch Blends, have garnered attention due to their sustainable properties and ability to biodegrade under industrial composting conditions.
PBAT, being a flexible and versatile biodegradable polymer, has gained traction for its applications in flexible packaging, contributing to the industry's shift toward environmentally responsible solutions. Similarly, PLA (Polylactic Acid) stands out for its performance characteristics, often utilized in food packaging, catering to consumer preferences for sustainable options.
This natural polymer sourced from renewable resources such as corn starch presents a viable alternative to traditional plastics. PBS (Polybutylene Succinate), another notable material, offers robust mechanical properties and has been recognized for its potential in both packaging and agricultural films, aligning with market demands for functionality alongside sustainability.
PHA (Polyhydroxyalkanoates) is significant due to its biocompatibility and sustainability, making it suitable for diverse applications, including medical supplies, expanding the scope of compostable plastics beyond traditional packaging uses.
Other formulations within this segment, like Starch Blends, exhibit favorable properties while being cost-effective, appealing to a range of manufacturers aiming to adopt greener practices. As the industry witnesses a notable shift towards sustainability, these materials are projected to gain a substantial share, driven by increasing consumer awareness regarding environmental impact and stricter regulations on plastic waste.
The overall growth of the US Compostable Plastic Packaging Market is underpinned by these materials aligning with both consumer demand for eco-friendliness and legislative pressures for reduced plastic usage.
Furthermore, innovations in material chemistry and processing techniques continue to enhance the performance of these compostable options, driving their adoption in various sectors. Not only do they contribute to reducing waste in landfills, but they also support the circular economy concept by utilizing renewable resources, significantly reducing the carbon footprint of packaging solutions in the US.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The US Compostable Plastic Packaging Market is characterized by its diverse application segment that includes Bags, Pouches, Boxes, Bottles, Cups, Trays, Plates, and Bowls among others. This market is gaining traction due to the increasing consumer awareness regarding sustainability and environmental protection, with compostable packaging emerging as a preferred alternative to traditional plastics.
The Bags category has notably gained prominence due to its high usage in retail and grocery sectors, addressing the need for eco-friendliness in everyday shopping. Pouches have also become vital, finding applications in food and personal care products, thereby helping companies meet regulatory mandates for reducing plastic waste.
Boxes are increasingly utilized in e-commerce and mailing services, driven by the surge in online shopping behaviors, particularly highlighted during recent years. Additionally, Cups, Trays, Plates, and Bowls are critical for the foodservice industry, including restaurants and event catering, where prevailing trends focus on convenience and waste reduction.
Overall, the US Compostable Plastic Packaging Market is evolving with significant contributions from various application areas, reflecting a composite growth driven by consumer preferences shifting towards environmentally sustainable packaging solutions. This rise offers considerable opportunities for innovation and differentiation among businesses in the industry.
The US Compostable Plastic Packaging Market is increasingly shaped by its diverse end user industry, which includes Food Service, Cosmetics and Personal Care, Homecare, Healthcare, and Others. In the Food Service sector, there is a strong emphasis on sustainability, with many businesses shifting towards compostable packaging to reduce waste and cater to eco-conscious consumers.
The Cosmetics and Personal Care industry is also adopting compostable solutions to align with growing consumer demand for environmentally friendly products. Homecare products are increasingly utilizing compostable packaging, as consumers become more aware of the ecological implications of traditional plastics.
The Healthcare sector remains a critical segment due to the rising focus on safety and sustainability, utilizing compostable materials for packaging medical supplies in eco-friendly practices. Meanwhile, the Others category captures various industries that recognize the importance of sustainable packaging in their branding and operational practices, indicating a broader trend toward embracing compostability.
Overall, the increasing awareness about environmental issues and changes in consumer preferences are driving the growth of the compostable packaging market across these diverse sectors.
The US Compostable Plastic Packaging Market is experiencing substantial growth as a result of increasing awareness regarding environmental sustainability and the detrimental impact of traditional plastics on the ecosystem. This market is characterized by a diverse range of players striving to offer innovative solutions that align with consumer demand for environmentally friendly products.
The competitive landscape of this market is influenced by factors such as technological advancements, regulatory standards promoting sustainable materials, and partnerships that enhance product offerings and market reach. Key industry participants are focusing on research and development to create compostable materials that can effectively replace conventional packaging options.
As a result, companies are increasingly seeking strategic collaborations and mergers to enhance their market standing and to improve their sustainability profiles. Sealed Air has established a noteworthy position within the US Compostable Plastic Packaging Market, capitalizing on its extensive experience in the packaging industry.
The company is recognized for its commitment to sustainability and innovation, leveraging its expertise in developing packaging solutions that reduce environmental impact. Sealed Air's strengths lie in its advanced technologies that facilitate the creation of compostable products tailored to various applications, meeting the increasing demand for eco-friendly packaging solutions from consumers and businesses alike.
The company has forged partnerships with multiple organizations to further enhance its sustainable initiatives, ensuring it remains competitive within this rapidly evolving market. Moreover, Sealed Air is focused on mitigating waste generation and offering solutions that align with circular economy principles, strengthening its reputation as a market leader in eco-conscious packaging.
NatureWorks is another significant player in the US Compostable Plastic Packaging Market, renowned for its innovative biopolymer products derived from renewable resources. The company specializes in producing Ingeo, a polymer made from plant sugars, which serves as a foundational material for various compostable packaging solutions.
NatureWorks has successfully positioned itself as a leader in the bioplastics domain, benefiting from a robust supply chain and strong partnerships across the packaging and food industries. The company’s focus on research enables the development of cutting-edge materials that meet the growing demands for sustainable packaging.
NatureWorks has engaged in strategic mergers and collaborations to enhance its research efforts and expand market presence, further solidifying its strengths. The broad portfolio includes flexible films, rigid containers, and other applications that contribute to its competitive position within the US market, appealing to businesses aiming to adopt more sustainable packaging options.
The US Compostable Plastic Packaging Market has seen significant developments recently. In August 2023, NatureWorks announced a major expansion of its Ingeo biopolymer production facility to meet the rising demand for sustainable packaging solutions, aimed at reducing reliance on fossil fuels. Furthermore, DuPont has launched a new line of compostable films specifically designed for food packaging applications, reinforcing its commitment to sustainable practices. In September 2023, BASF partnered with Cargill to develop innovative biodegradable materials that promise to enhance environmental sustainability in packaging applications. Market valuations for companies like Sealed Air and EarthFirst have been positively impacted, with increased interest from consumers and enterprises in reducing plastic waste. In the last couple of years, significant moves have been made; for instance, in October 2022, Biome Bioplastics gained traction with its expanded product offerings, leading to collaborations with major retail brands. Notably, the trend toward sustainability has prompted mergers and acquisitions, notably in July 2023 when TOMRA Sorting Recycling acquired Cardia Bioplastics to broaden its portfolio of compostable solutions in response to increasing regulatory pressures and consumer demands for eco-friendly packaging options.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 226.35(USD Million) |
| MARKET SIZE 2024 | 238.8(USD Million) |
| MARKET SIZE 2035 | 550.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 7.88% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | Sealed Air, NatureWorks, Plastic Suppliers, Biome Bioplastics, BASF, Helianthus, Mitsubishi Chemical, Envirosax, DuPont, Cargill, EarthFirst, Green Dot, TOMRA Sorting Recycling, Cardia Bioplastics, Novamont |
| SEGMENTS COVERED | Material, Application, End User Industry |
| KEY MARKET OPPORTUNITIES | Sustainable packaging demand surge, Regulatory support for eco-friendly materials, E-commerce packaging innovation trends, Increased consumer awareness, Collaboration with brands for sustainability |
| KEY MARKET DYNAMICS | sustainable packaging demand, environmental regulations impact, consumer preference shift, technological advancements in materials, market competition intensity |
| COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The US Compostable Plastic Packaging Market is expected to be valued at 238.8 million USD in 2024.
By 2035, the US Compostable Plastic Packaging Market is projected to reach a value of 550.0 million USD.
The market is expected to exhibit a CAGR of 7.88% during the forecast period from 2025 to 2035.
The PLA segment is anticipated to dominate the market with an expected value of 190.0 million USD by 2035.
The PBAT segment is expected to be valued at 50.0 million USD in 2024 and 115.0 million USD by 2035.
Major players in the market include Sealed Air, NatureWorks, BASF, and DuPont among others.
The PBS segment is expected to reach a value of 40.0 million USD in 2024.
The market faces challenges from traditional plastic packaging solutions that are well-established and widely used.
The Starch Blends segment is projected to be valued at 90.0 million USD by 2035.
The increasing focus on sustainability and reducing plastic waste is driving the demand for compostable plastic packaging solutions.
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