Compostable Plastics Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Compostable Plastics Type (PLA, Starch Blends, PHA, PBAT, and Others), By End User Industry (Packaging, Consumer Goods, Textiles, and Others), By Company, By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.85 Billion
CAGR (2026-2031)	10.26%
Fastest Growing Segment	PLA
Largest Market	North America
Market Size (2031)	USD 5.12 Billion

Market Overview

The Global Compostable Plastics Market will grow from USD 2.85 Billion in 2025 to USD 5.12 Billion by 2031 at a 10.26% CAGR. Compostable plastics are polymer materials derived from renewable biomass or fossil sources that are designed to undergo biological degradation to yield carbon dioxide, water, and biomass under specific environmental conditions. The primary drivers propelling the expansion of this market include stringent government regulations mandating the reduction of single-use conventional plastics and the strategic shift of multinational corporations towards circular economy goals. Additionally, the growing requirement for sustainable packaging solutions within the food service and agricultural sectors further solidifies the demand for these environmentally viable alternatives.

However, the widespread adoption of these materials faces a significant challenge due to the lack of adequate industrial composting infrastructure required to process the waste effectively at the end of its life cycle. High production costs relative to traditional petroleum-based polymers also act as a constraint on mass commercialization in price-sensitive regions. According to European Bioplastics, in 2025, the global bioplastics production capacity stood at 2.31 million tonnes, with the packaging segment accounting for the largest share of these volumes. This data highlights the industry's continued investment in capacity expansion despite the prevailing infrastructural hurdles.

Key Market Drivers

Corporate Sustainability Goals and Extended Producer Responsibility (EPR) Initiatives are acting as a primary catalyst for the market, as major consumer goods companies aggressively transition away from conventional plastics to meet internal environmental targets and compliance mandates. This shift is characterized by increased investments in packaging redesigns that prioritize end-of-life biodegradability, thereby mitigating waste management costs associated with global EPR schemes. For instance, according to PepsiCo, in September 2025, in the '2024 ESG Summary', the corporation reported that 93% of its packaging portfolio was reusable, recyclable, or compostable, underscoring the rapid operational scale-up of sustainable materials to align with circularity commitments.

Simultaneously, the Growing Focus on Carbon Footprint Reduction and Circular Economy Principles is accelerating the adoption of compostable alternatives that offer significantly lower lifecycle emissions compared to fossil-based polymers. Manufacturers are increasingly commercializing bio-based materials that act as carbon sinks or require less energy to produce, appealing to downstream industries striving for net-zero supply chains. A notable development supporting this trend occurred when, according to TotalEnergies Corbion, in September 2025, the company released data showing its virgin Luminy PLA bioplastic achieves a carbon footprint of just 0.29 kg CO2-eq per kg, representing an 85% reduction versus traditional plastics. Reflecting this broader industry momentum, according to European Bioplastics, in December 2025, global biobased plastics production capacity is projected to reach approximately 4.69 million tonnes by 2030, driven by these compounding sustainability drivers.

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Key Market Challenges

The lack of adequate industrial composting infrastructure constitutes a critical structural barrier hampering the growth of the Global Compostable Plastics Market. These materials require specific environmental conditions found only in specialized facilities to degrade effectively. When such infrastructure is absent, compostable plastics often end up in landfills where they do not degrade as intended or in recycling streams where they contaminate conventional polymers. This operational failure creates hesitation among corporate buyers who fear their investment in sustainable materials will result in unintended environmental harm rather than the promised circular benefits.

The impact of this infrastructure gap is amplified by the industry's dependence on high-volume disposal categories. Since the market relies heavily on single-use items, the inability to close the waste loop directly undermines the value proposition for the largest application segment. The scale of this dependency is significant. According to European Bioplastics, in 2025, the packaging segment accounted for 41.3 percent of the global bioplastics market. Consequently, the disparity between material production capacity and the availability of necessary processing facilities creates a bottleneck that restricts broader commercial adoption.

Key Market Trends

The Shift Toward Home-Compostable Foodservice Solutions is rapidly evolving as a strategic response to the critical shortage of industrial composting infrastructure. By engineering materials capable of degrading in ambient backyard conditions, manufacturers are effectively decoupling sustainable packaging from the reliance on specialized municipal processing facilities, which remains a primary bottleneck for market expansion. This operational pivot allows brands to offer verifiable end-of-life solutions that consumers can manage independently, thereby securing compliance with stricter environmental claims legislation. Validating this industry-wide transition, according to the Biodegradable Products Institute (BPI), September 2025, in the 'BPI Launches Commercial & Home Compostable Certification Program' announcement, the organization noted that while it currently certifies over 51,000 products for commercial facilities, the introduction of the new dual-certification standard was necessary to meet the surging market requirement for verified residential waste diversion options.

Simultaneously, the Emergence of Algae and Seaweed-Based Biopolymers is redefining feedstock strategies by utilizing marine resources that do not compete with food crops for arable land or fresh water. These next-generation hydrocolloid materials address specific performance gaps found in starch-based polymers, particularly regarding natural dissolution and marine safety, making them ideal for flexible films and coatings in the takeaway sector. The commercial viability of this technology has accelerated significantly, moving beyond niche prototyping to substantial volume replacement. Underscoring this scaling capability, according to Notpla, April 2025, in the '2024 Impact Report', the company disclosed that its seaweed-based packaging portfolio successfully replaced 11.6 million single-use plastic items in 2024, effectively doubling its displacement volume compared to the previous year.

Segmental Insights

Polylactic Acid (PLA) currently represents the fastest-growing segment in the Global Compostable Plastics Market, primarily due to its unique ability to replicate the clarity and rigidity of conventional thermoplastics. This material is experiencing rapid commercial adoption as it utilizes renewable feedstocks, such as corn starch, and remains highly compatible with existing manufacturing equipment. The segment's expansion is further consolidated by certifications from organizations like the Biodegradable Products Institute, which validate its compliance with industrial composting standards. Consequently, PLA has become the preferred choice for sustainable food packaging and service ware, offering a practical solution to meet tightening global environmental regulations.

Regional Insights

North America holds the leading position in the global compostable plastics market, primarily driven by stringent environmental regulations and increasing consumer demand for sustainable packaging alternatives. The United States Environmental Protection Agency supports waste reduction initiatives that encourage the adoption of compostable materials across the packaging and food service sectors. Furthermore, the Biodegradable Products Institute provides essential certification standards that validate product claims and ensure commercial reliability. This combination of supportive regulatory frameworks and established infrastructure allows the region to dominate the global market landscape effectively.

Recent Developments

• In November 2025, CJ Biomaterials formed a strategic partnership with BIQ Materials to accelerate the commercialization of artificial turf infill produced using its patented PHA technology. This collaboration was established to address the European Union's regulatory moves against intentionally added microplastics by providing a fully biodegradable solution. The new infill material was engineered to support artificial turf and absorb impact while ensuring it does not leave persistent plastics in the environment. The agreement facilitated the supply of the company's specialized biopolymer grade to its partner for the manufacturing of these sustainable performance products.
• In August 2024, TotalEnergies Corbion signed a distribution agreement with Nagase & Co. to expand the market reach of its PLA bioplastics across Japan. This partnership was formed to support the country's objective of achieving carbon neutrality by promoting the adoption of materials derived from renewable resources. In addition to sales distribution, the two companies agreed to collaborate on research and development to enhance material properties and create new applications tailored to local customer requirements. The initiative aimed to replace conventional fossil-based plastics in various sectors by leveraging the significantly lower carbon footprint of the sugarcane-based polymers.
• In May 2024, NatureWorks secured a $350 million loan from Krungthai Bank to optimize the capital structure for its new fully integrated Ingeo PLA manufacturing facility in Thailand. This substantial investment supported the construction and operational readiness of the plant, which was designed to produce lactic acid, lactide, and finished biopolymers at a commercial scale. The financing demonstrated the financial sector's confidence in the company's global expansion and the increasing market demand for biobased materials. The facility was established to serve the growing Asia Pacific bioeconomy and advance the supply of sustainable plastic solutions.
• In April 2024, BASF expanded its biopolymer portfolio by introducing a new certified industrial compostable grade, ecovio T 2206, specifically developed for greenhouse twines. This product launch allowed growers to utilize compostable black twines for supporting climbing crops such as tomatoes and cucumbers in commercial agricultural operations. The innovation enabled farmers to collect the twines together with plant residues after harvest and transport them directly to composting facilities, eliminating the need for labor-intensive separation. The material was designed to biodegrade efficiently, helping to prevent the accumulation of persistent microplastics in organic waste streams.

Key Market Players

• BASF SE
• Novamont S.p.A.
• Corbion N.V.
• Biome Technologies plc
• Total Corbion PLA
• Dow Chemical Company
• Natureworks LLC
• Eastman Chemical Company
• Danimer Scientific, Inc.
• Mitsubishi Chemical America, Inc

By Compostable Plastics Type	By End User Industry	By Region
PLA Starch Blends PHA PBAT and Others	Packaging Consumer Goods Textiles and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Compostable Plastics Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Compostable Plastics Market, By Compostable Plastics Type:

• PLA
• Starch Blends
• PHA
• PBAT
• and Others

• Compostable Plastics Market, By End User Industry:

• Packaging
• Consumer Goods
• Textiles
• and Others

• Compostable Plastics Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE