Compostable Packaging Films Market

Compostable Packaging Films Market Size

The global compostable packaging films market size was valued at USD 10.2 billion in 2024, with a volume of 2,285.26 kilo tons, and is estimated to grow at 8.7% CAGR from 2025 to 2034. The demand for compostable packaging films is growing significantly owing to the growth of e-commerce along with the growth in food & beverage industry.

With the advent of the Trump administration tariffs on imports of biopolymers and other necessary processing equipment, manufacturers of compostable packaging films based in the U.S. are under cost pressure. Tariffs have disrupted global supply chains, raised input costs, and created uncertainty for stakeholders investing in sustainable packaging solutions. The additional cost burden could hinder the adoption and expansion of compostable films, especially for small- to mid-sized enterprises that depend on imported feedstock or manufacturing technologies. Additionally, retaliation tariffs by other nations further made international trade more challenging, affecting export prospects and the general competitiveness of the industry.

The industrial growth of e-commerce is influencing a profound impact on the demand for sustainable and efficient packaging. With the rise of online retailing, the volume of products shipped keeps growing, fueling the need for sustainable packaging that is acceptable to consumers and meets regulatory needs. Compostable films are gaining popularity in e-commerce logistics because they are lightweight, flexible and biodegradable. The India Brand Equity Foundation (IBEF) states that the Indian e-commerce market is expected to grow from USD 125 billion in 2024 to USD 345 billion by 2030. The shift highlights the demand for sustainable packaging such as compostable films, especially in growing economies where environmentally friendly infrastructure is increasingly needed.

Compostable packaging film manufacturers should develop lightweight, durable, and biodegradable films tailored for e-commerce logistics, aligning with rising consumer expectations and regulatory pressure for sustainable packaging in fast-growing markets like India.

The food and beverage sector is one of the major end-users of compostable packaging films because of the increasing demand for more sustainable, single-use packaging materials. The films are widely utilized in wrapping perishable foods, ready-to-eat foods, snacks and beverages, thereby providing product protection as well as sustainability. Regulators and consumers are both demanding for minimized plastic packaging in food due to its health and environmental implications. Compostable films offer an effective solution by ensuring food hygiene as well as post-use compostability. As more importance is being placed on sustainability as a purchasing parameter in the F&B industry, demand for compostable packaging films will witness strong growth.

Compostable packaging film manufacturers should target producing food-grade, biodegradable films that provide hygiene and shelf life, while achieving sustainability levels expected by consumers and regulatory agencies in the food and beverage sector.

Compostable Packaging Films Market Trends

• One of the forthcoming trends in the compostable packaging films industry is the shift towards home compostable solutions and mono-material designs in order to simultaneously satisfy regulatory policies and consumer needs. For example, in November 2023, Roberts Mart, a UK-based flexible packaging firm, introduced "Biyo," a new home compostable biodegradable packaging film. Biyo is made from biodegradable materials such as vegetable starch, which replaces oil-based plastic films without affecting functionality or safety. This launch demonstrates a wider market trend aimed at minimizing reliance on industrial composting plants, providing consumers with easier waste management. It also illustrates industry innovation in substituting multi-layer plastics with simpler, eco-efficient options that support circular economy objectives.
  
• Another important trend in the market is the development of industry-specific high-performance films with barrier capabilities comparable to conventional plastics. Manufacturers are improving moisture, oxygen, and aroma barriers capabilities of compostable films to satisfy the functional demands in food and healthcare sectors. These advancements are enabling compostable films to substitute petroleum-based plastics in more demanding applications without affecting the shelf life or safety of products.
  

Compostable Packaging Films Market Analysis

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On the basis of thickness, the market is divided into up to 30 microns, 30–60 microns, and above 60 microns.

• Up to 30 microns market is projected to grow at a CAGR of 7.7% during the forecast period. These film thicknesses ranges are usually applied in packaging light food products like bakery products, snacks, or tea bags, as well as label and overwrap solutions. Their minimal usage of materials enhances cost-effectiveness while ensuring compostable compliance for short-shelf-life items.
  
• 30–60 microns market is anticipated to reach USD 10.2 billion by 2034.The 30–60 microns segment provides greater durability and barrier properties suitable for the packaging of fresh fruits and vegetables, frozen foods and some retail products. These are aimed towards applications where moderate protection and seal strength, along with balance between performance and compostability, are needed.
  

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On the basis of material, the compostable packaging films market is divided into polylactic acid (PLA), bamboo, polyhydroxyalkanoate (PHA), starch-based films, cellulose-based films, and others.

• Polylactic acid (PLA) market is expected to reach USD 8.7 billion by 2034. The PLA-based films hold the dominant market share among the food packaging industry due to their good printability, transparency, and compostability. PLA-based films remain a viable substitute for fossil fuel plastics. Their swift commercial adoption is also facilitated by their compatibility with existing converting equipment.
  
• Polyhydroxyalkanoate (PHA) market is projected to grow at a CAGR of 10.8% during the forecast period. PHA films are gaining momentum for their marine biodegradability and higher compostability, even in domestic environments. PHA is still more costly, but it is chosen in the premium food and personal care packaging markets where brands emphasize environmental footprint and waste reduction.
  

On the basis of application, the compostable packaging films market is divided into food & beverage, healthcare & pharmaceuticals, retail & e-commerce, home & personal care, and others.

• Food & beverage market accounted for 35% in 2024. In the food and beverage packaging segment, there is an emerging trend with the introduction of high-barrier compostable films that prolong product shelf life without limiting biodegradability.  The industry is concentrating on developing multilayered compostable solutions for ready-to-eat meals, fresh and organic food, balancing environmental objectives with food safety.
  
• Retail & e-commerce market is anticipated to grow at a CAGR of 10.7% during the forecast period. The retail and e-commerce industries are adopting the use of compostable films for mailers, overwraps, and product bags to meet consumer demand for eco-friendly packaging. Using compostable films allows brands to meet their ESG targets while also minimizing their use of plastic throughout the packaging lifecycle.
  

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• The U.S. accounted for a share of 87.9% in the compostable packaging films market in 2024. The U.S. market is led by a strong regulatory push against plastic waste and company sustainability commitments. There is high demand for compostable films from the organic food industry and environmentally conscious consumers, which is driving innovation in home-compostable films. Major companies are working with material engineers to develop commercially viable biodegradable alternatives.
  
• The Germany compostable packaging films market is anticipated to grow at a CAGR of 10.6% during the forecast period. The German market is shaped by stringent EU waste management regulations alongside high consumer environmental consciousness. Domestic suppliers are developing bio-based home-compostable films targeted at the retail and food industry. The country is also experiencing accelerated R&D in multifunctional high-performance films aligned to Germany’s circular economy and zero-waste philosophy.
  
• The China compostable packaging films market is anticipated to grow at a CAGR of 10.1% during the forecast period. The China market for compostable packaging film is expanding rapidly as a result of heightened restrictions on single-use plastics and government policies mandating the use of biodegradable materials. Domestic manufacturing is increasing through state-led innovation and pilot zones for green packaging. The food delivery and e-commerce sectors are major drivers of this growth, generating a high demand for scalable compostable film formats.
  
• Japan accounted for a share of 15.2% in the compostable packaging films market in 2024. In Japan, the market is fueled by domestic sustainability efforts and consumer interest in environmentally friendly packaged products. The country’s strategy on Plastic Resource Circulation is catalyzing adoption. Japanese companies are developing thin film compostable packaging for convenience foods focusing on high-performance, minimal-waste formats suitable for urban consumers.
  
• India’s compostable packaging films market is expected to grow at a CAGR of 10.9% during the forecast period. Government restrictions on single-use plastics, coupled with the expansion of e-commerce, are driving India's compostable films market growth. Startup and established players in the packaging sector are developing cost-effective starch-based compostable films for food and delivery sectors. Growing environmental awareness, along with efforts like 'Startup India,' are accelerating the use of compostable products.
  

Compostable Packaging Films Market Share

The market is highly competitive. The major 4 players in the market are Novamont S.p.A., Futamura Group, TIPA Corp and Polystar Plastics accounting for a share of over 20% in the market.

The market for compostable packaging films includes both established players and emerging innovators focusing on sustainable materials. Firms are actively involved in research and development initiatives to improve the barrier properties of the film and the efficiency of composting. Strategic collaboration is on the rise, particularly between consumer goods companies and packaging manufacturers, to collaborate on developing custom solutions. Firms are also undertaking mergers and acquisitions to increase regional coverage and expand product offerings scope. Furthermore, the companies are obtaining TUV Austria or BPI certifications to enhance their market credibility by verifying the claims of compostability. Product differentiation through innovation in home-compostable and mono-material packaging remains a key strategy to gain market share.

Compostable Packaging Films Market Companies

Some of the prominent market participants operating in the compostable packaging films industry industry include:

• Amtrex Nature Care
• Baroda Rapids
• BASF
• BI-AX International
• BioBag International
• Biome Bioplastics
  

BI-AX International Inc. has a specific strategy that revolves around innovation technical customization in compostable films. The firm places emphasis on developing multi-layer bio-based films designed for specific uses, including food packaging. The strategy also aims at strengthening client relations by providing high-efficiency compostable products which meet dynamic legislative sustainability requirements and end-user needs.

Futamura Group is concentrating its strategy on its leading NatureFlex range of compostable films in a bid to seize global opportunities for sustainable packaging. Its strategy also includes increasing market presence by partnering with brand owners and packaging converters, marketing certified compostable packaging films and increased investment in R&D to develop barrier capabilities and extend shelf life in food applications.

Compostable Packaging Films Industry News:

• In January 2025, Parkside, a leader in sustainable packaging solutions, launched a new generation of recyclable and compostable lidding films that appeal to food brands, packers, and processors seeking premium, sustainable packaging options.
  
• In February 2025, TIPA, the global innovation leader in creating new compostable packaging solutions, launched 312MET Premium film, a new product that expands their portfolio which is a premium home compostable metallized high-barrier film for the snack market.
  

The compostable packaging films market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue (in USD Billion) & volume (in Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Material

• Polylactic acid (PLA) 
• Bamboo       
• Polyhydroxyalkanoate (PHA)
• Starch-based films  
• Cellulose-based films
• Others

Market, By Thickness

• Up to 30 microns     
• 30–60 microns        
• Above 60 microns              

Market, By Application

• Food & beverage     
• Healthcare & pharmaceuticals       
• Retail & e-commerce          
• Home & personal care        
• Others

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE