The global compostable packaging market size was valued at USD 80.76 billion in 2024. The market is projected to grow from USD 85.43 billion in 2025 to USD 132.86 billion by 2032, exhibiting a CAGR of 6.51% during the forecast period. Compostable packaging is an eco-friendly form of packaging that can be easily composted by customers at home or at an industrial composting plant. It is a sustainable alternative to single-use plastics that can help users decrease their plastic waste. The increasing adoption of eco-friendly packaging products will accelerate the market’s growth.

Fortune Business Insights presents this information in a report titled "Compostable Packaging Market, 2025-2032."

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Segments:

• By Material: Polylactic acid (PLA) dominates the compostable packaging market with 31% share in 2024, driven by its biodegradable, edible, and carbon-neutral properties.
• By Product Type: Bags & pouches lead the market, supported by strong demand from food, beverage, pharma, and personal care industries, holding 34% share in 2025.
• By End-use Industry: Food & beverages is the top end-use segment, fueled by rising online food delivery and eco-friendly packaging needs, expected to capture 51% share in 2025.

Report Coverage:

The report has conducted a detailed analysis of the market and focused on several critical aspects, such as leading end uses, applications, and top market players. It has also highlighted the most recent market trends and the key developments in the industry. In addition to the factors mentioned above, the report delves into several other factors that have helped the market grow.

Drivers:

Increasing Inclination Toward Eco-Friendly Packaging Solutions to Drive Market Expansion

Customers in developed countries are becoming aware of the impact of their daily lifestyle choices on the environment. Rise in the consumption of plastic-based packaging products has made them realize the harmful effects of plastic pollution on the planet. These factors have increased their inclination toward eco-friendly packaging products, thereby fueling the sales of compostable packaging solutions.

However, there is a severe lack of technologies that can help create innovative compostable packaging products, which can restrain the market’s growth.

Regional Insights

North America Leads Global Market Growth Due to Government Support for Eco-Friendly Packaging Products

North America dominates the global compostable packaging market share as governments across the region are offering their support in the form of initiatives to promote the use of eco-friendly packaging solutions.

Europe has emerged as the second-leading region due to the ban on single-use plastics and growing adoption of eco-friendly packaging products.

Asia Pacific will also witness remarkable growth due to the high demand for eco-friendly packaging solutions.

Latin America and the Middle East & Africa will showcase moderate growth due to the steady expansion of the food & beverage and cosmetics industries in these regions.

Competitive Landscape