The biodegradable and compostable packaging market is set for notable growth as consumer demand, sustainability commitments from brands, and new regulatory measures converge, according to leading packaging market analyst Smithers.
Smithers’ report, The Future of Biodegradable and Compostable Packaging to 2029, forecasts the market’s value to rise from $2.56 billion in 2024 to $4.0 billion by 2029, with a compound annual growth rate (CAGR) of 9.1 per cent.
The report highlights the rising R&D investment in biodegradable polymers, such as polylactic acid (PLA), polyhydroxyalkanoates (PHAs), aliphatic-aromatic copolyesters, cellulose acetate, and starch-based blends. PLA remains the most used bioplastic within packaging, available in both rigid and flexible forms. Although current PLA products require industrial composting conditions for degradation, research is underway to enhance its decomposition under ambient conditions through additives and copolymer blends.
Consumption of biodegradable and compostable polymers in packaging is expected to increase from 770,000 metric tons in 2024 to 1.17 million metric tons by 2029. Despite the primary focus on polymer recycling within the plastic industry, compostable materials offer a sustainable solution for items not feasible to recycle cost-effectively.
Key developments in the field include advancements in polylactic acid and aliphatic-aromatic copolyesters. For example, new additives are enhancing the strength of polybutylene succinate (PBS), a prominent type of copolyester. Starch-based polymers, gaining traction for extrusion coating and lamination, are also evolving, with improved processes for production from bio-based sources.
Market growth is particularly driven by legislative measures, such as Europe’s Single-use Plastics Directive and anticipated updates from the Packaging and Packaging Waste Regulation (PPWR). These regulations are pushing manufacturers toward biodegradable solutions, especially for single-use formats like coffee capsules. Food and foodservice packaging currently represents over 40 per cent of market consumption, a trend set to continue with the increasing replacement of conventional plastics in these sectors.
Challenges remain, particularly the higher cost of biodegradable and compostable polymers compared to traditional thermoplastics. The higher density of these materials further compounds their cost.
Smithers’ report provides a comprehensive analysis of the market landscape, including legislative impacts, technical advancements, and growth forecasts segmented by polymer type, end-use sector, and geographic region. The study is available for purchase, offering detailed insights for stakeholders looking to navigate the evolving biodegradable packaging market.
