Enjoy complimentary customisation on priority with our Enterprise License!
The compostable plastic market size is estimated to grow at a CAGR of 15.54% between 2022 and 2027. The market size is forecast to increase by USD 1,905.33 million. The growth of the market depends on several factors, including the growing use of compostable packaging, environmental hazards associated with traditional plastics increasing demand for compostable plastics, and increasing awareness of environmental concerns regarding plastic usage.
This compostable plastic market report extensively covers market segmentation by end-user (packaging, consumer goods, textiles, agriculture, and others), product (compostable bag, compostable cutlery, compostable gloves, compostable straw, and others), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, View Report Sample
The increasing awareness of environmental concerns regarding plastic usage is notably driving the market growth, although factors such as the high costs of compostable plastics compared with conventional plastics may impede the market growth. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing awareness of environmental concerns regarding plastic usage is notably driving market growth. Growing environmental awareness has made consumers more likely to purchase eco-friendly goods. As environmental concerns about plastic usage rise, compostable plastics are becoming more common.
Recently, a brand-new line of compostable plastic-packaged coffee capsules was unveiled. Compostable capsules offer the chance to recover used coffee grounds, allowing for their processing at a facility where they can add valuable nutrients to the finished compost, in addition to addressing consumer concerns and keeping packaging out of landfills. Thus, one of the key factors anticipated to fuel the growth of the global market for compostable plastic is rising awareness of environmental concerns regarding the use of plastic during the forecast period.
The growing number of investments, collaborations, and agreements among vendors is an emerging trend in market growth. The vendors that are active in the global market are attempting to concentrate on investments, partnerships, innovation, new product introductions, acquisitions, and growth. During the forecast period, these steps taken by vendors will help marketers offer the best product and hold the largest market share.
For example, the development of compostable bioplastics was to be aided by a USD 1 million investment in BOSK Bioproducts Inc. from the Canadian Department of Natural Resources in April 2021. BOSK Bioproducts Inc. will be able to develop products and enhance their compatibility with manufacturers of existing machinery due to this funding during the forecast period. Similarly, in order to distribute biopolymer Ecovio for certified compostable bags, BASF SE and WPO Polymers teamed up in September 2021. Regarding the new rules, Ecovio is primarily employed to create plastic films for fruit and vegetable bags, organic waste bags, and certified compostable shopping bags, in addition to the mandated use of compostable bags by food service establishments and retailers. The use of plastic bags is now subject to stricter regulations in Spain, and BASF anticipates that this will lead to a rise in the demand for its compostable resins. Thus, these factors are expected to drive the growth of the global market during the forecast period.
The high costs of compostable plastics compared with conventional plastics is a major challenge impeding market growth. Currently, the price of compostable plastic ranges from USD 2.65 to USD 6.68 per kilogram, compared to only USD 1.65 for conventional plastics. Other factors contributing to the low demand for bioplastics include high production costs due to vendors' small-scale production, high R&D expenditures, and significant price differences between conventional petroleum-based plastics and bioplastics.
Compostable plastics are produced at a cost that is 25% to 75% higher than that of traditional plastics. This is primarily caused by the high cost of polymerization. The majority of the processes are also still in the development phase and have not yet reached economies of scale. Furthermore, since the technology is still in its infancy and various raw materials are being tested for the best production of compostable plastics, one of the main problems with the production of compostable plastics is its unconvincing technology. Thus, such factors are expected to hinder the growth of the global market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Compostable Plastic Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Green Dot Bioplastics Inc. - The company focuses on offering bio-composites, biodegradable, elastomers, starch composites and wood composites. The key offerings of the company include compostable plastics under its brand RENEW.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the packaging segment will be significant during the forecast period. The largest use of compostable plastics is in packaging. Bottles, loose-fill, cups, pots, blows, flexible films, and other products are made using these. Flexible and rigid packaging are the two most popular types of compostable packaging. Fresh food, dry snacks, candy, bakery goods, juice bottles, meat trays, as well as coatings for beverage cups, films, and card stock are all packaged with products made of compostable plastics.
Get a glance at the market contribution of various segments View the PDF Sample
The packaging segment was valued at USD 630.38 million in 2017 and continued to grow until 2021. For the packaging of premium and branded products with specific requirements, as well as organic food, bioplastic packaging such as compostable packaging is in high demand. More than 60% of bioplastics are used in packaging. These are utilized in the packaging of food, cosmetics, and other materials. Furthermore, the global e-commerce sector largely controls the packaging market. For packaging purposes, the e-commerce sector frequently makes use of foam, carrier bags, and shrink wrap. During the forecast period, the strong global e-commerce sector will fuel demand for packaging materials, including compostable plastics. Additionally, in 2020, the US, China, Japan, and India were among the top markets for food services globally. Due to their large population strength, these countries need a lot of food packaging materials. The growing world population will, therefore, increase the demand for food and fuel the market for food packaging materials. Thus, all such factors are anticipated to fuel the growth of the market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
Europe is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In terms of consumption, Europe accounted for one of the largest shares of the global market in 2022. The sizeable market share is attributed to the consumers' high demand for eco-friendly packaging materials. Government agencies support this high demand because such products are good for the environment. In order to encourage the use of bioplastics, numerous European nations have also established infrastructure for composting.
The two biggest markets in Europe are Germany and France. The production of plastic materials, plastic processing, and plastic machinery make up the three main subsectors of the German plastics industry. German consumer goods, packaging, automotive, and construction are the main end-user industries. By creating new materials, inventive additives, and other substance-improving materials, the region's abundance of manufacturers and processors also aids in the expansion of the market. These factors are anticipated to fuel the market for compostable plastic in the nation during the forecast period.
In 2020, the outbreak of COVID-19 negatively impacted the growth of the market in Europe. However, the lockdown norms across Europe were lifted in 2021, owing to the large-scale COVID-19 vaccination programs carried out across Europe. This led to the resumption of production activities in end-user industries such as packaging in 2021 and is expected to drive the demand for compostable plastics used for various applications in different end-user industries. Such factors will fuel the regional market growth during the forecast period.
The compostable plastic market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global compostable plastic market as a part of the global specialty chemicals market. The parent global specialty chemicals market covers companies engaged in the manufacturing of various types of products under organic and inorganic chemicals. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Compostable Plastic Market Scope |
|
Report Coverage |
Details |
Page number |
191 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.54% |
Market growth 2023-2027 |
USD 1,905.33 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
14.37 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 40% |
Key countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
BASF SE, Biome Technologies plc, BioTec Bags India Pvt. Ltd., BOSK Bioproducts, Cargill Inc., Danimer Scientific Inc., Eastman Chemical Co., Fkur Kunststoff GmbH, Futerro SA, Green Dot Bioplastics Inc., Kaneka Corp., KURARAY Co. Ltd., Mitsubishi Chemical Corp., Neste Corp., Northern Technologies International Corp., Novamont S.p.A., SK Chemicals Co. Ltd., Toray Industries Inc., TotalEnergies SE, Trinseo PLC, and BEWI ASA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.