How big is the compostable plastic market | Size, Trends & 2025 Outlook

Q: What is the current size of the compostable plastic market?

The compostable plastic market was valued at USD 2.6 billion in 2024 and is projected to reach USD 6.9 billion by 2031.

Q: What is the growth rate of the compostable plastic market?

The market is anticipated to grow at a CAGR of 14.9% between 2025 and 2031.

Q: Which components contribute the most to the compostable plastic market?

PLA, PBAT, starch blends, and PHA materials are key contributors to the market.

Q: What is driving demand in the compostable plastic market?

Demand is driven by plastic bans, sustainability initiatives, and increasing use in food packaging and agriculture.

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Code: MTA5849

Publication Date: Jul 2025

How big is the Compostable Plastic Market?

According to 6Wresearch internal database and industry insights, Global compostable plastic market was valued at approximatelyUSD 2.6 billion in 2024 and is projected to reachUSD 6.9 billion by 2031, growing at a CAGR of 14.9% during the forecast period.

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The market is expanding rapidly due to rising environmental concerns, strict plastic ban regulations, and increasing adoption of sustainable packaging solutions across industries.

Key Growth Drivers of the Compostable Plastic Market

Government regulations banning single-use plastics
Rising consumer awareness about environmental sustainability
Growing demand for eco-friendly alternatives in food packaging
Expansion of composting infrastructure in urban regions
Innovation in biopolymer technology and raw material sourcing

Compostable Plastic Market Trends

The compostable plastic market is witnessing increasing demand from food packaging, agriculture, and consumer goods sectors due to the growing need for biodegradable and eco-safe materials. PLA, starch blends, and PBAT are among the most commonly used materials in compostable plastic production. Major food chains and FMCG companies are shifting toward compostable options to meet sustainability goals. Packaging manufacturers are developing multi-layer compostable films with barrier properties suitable for perishable goods. Advancements in industrial composting technologies are improving the decomposition rate of these plastics under controlled conditions.

Emerging Developments in the Compostable Plastic Market

Compostable plastic market is developing and involves more investments in R&D of next generation polymers that are more performing, transparent and durable. The companies are concentrating on cutting down on cost and expanding production towards the global demand. Commercialization of certified compostable products is having the challenge eased off with the rapid development of new alliances between resin manufacturers and packages firms. The current policy and the resulting finances on circular economy programs are further stimulating inventions in the composting systems and biopolymer recovery regimes.