Compostable Foodservice Packaging Market Size - By Packaging Type (Plates, Bowl, Trays, Pouches), By Material (Plastic, Paper, Bagasse & Seaweed), By End Use (Restaurants, Cafe, Delivery Services) & Global Forecast 2023 – 2032

Compostable Foodservice Packaging Market Size - By Packaging Type (Plates, Bowl, Trays, Pouches), By Material (Plastic, Paper, Bagasse & Seaweed), By End Use (Restaurants, Cafe, Delivery Services) & Global Forecast 2023 – 2032

Compostable Foodservice Packaging Market Size

Compostable Foodservice Packaging Market size reached USD 17.8 billion in 2022 and is anticipated to record 5% CAGR from 2023 to 2032. The surging levels of environmental concerns coupled with the rising greenhouse gas emissions on account of improper packaging practices will drive the industry growth. As per Climate Collaborative, packaging, on average, records 5% of the energy used in a food product life cycle, in turn, marking a significant source of greenhouse gas emissions.

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The production of packaging materials, specifically sourced from fossil fuels gives rise to greenhouse gases, leading to climate changes and global warming. The improper disposal of packaging wastes also makes way for littering and land pollution, further degrading the ecosystems and harming wildlife. To that end, the growing focus of several food & beverage companies on adopting sustainable packaging solutions, including compostable, biodegradable, and recyclable materials for reducing the environmental impacts will define the market trends.

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Compostable Foodservice Packaging Market Growth Drivers & Restraints

The influx of several innovative compostable foodservice packaging technologies will influence the industry development. To cite an instance, in May 2023, ProAmpac launched ProActive Recyclable R-2200D, its patent-pending easy-peel open packaging solution to offer hassle-free snacking experiences to consumers. However, the surge in concerns related to food safety and contamination may hamper the market expansion. Compostable food containers when contaminated with non-compostable materials, including utensils, plastic straws, or food residues, can impede the composting process, further creating impurities in the resulting compost.

COVID-19 Impact

The COVID-19 pandemic positively influenced the demand for compostable foodservice packaging driven by the heightened adoption of single-use packaging in multiple foodservice establishments, such as disposable food containers and utensils to limit the spread of the virus via surface contact. In November 2020, KFC, the American fast-food restaurant chain announced that it had begun testing a new fibre-based ‘spork’ across select locations in Canada. The growing efforts to tackle plastic pollution while promoting sustainability across the foodservice industry further influenced the adoption and utilization of compostable alternatives.

Compostable Foodservice Packaging Market Trends

Increasing popularity of sustainable solutions in packaging to meet the growing environmental awareness among consumers will have favorable impact on the industry expansion. The surging concerns about waste along with the greater desire for more eco-friendly practices have made way for the heightened demand for sustainable packaging solutions. In Jan 2021, Nestle’s Smarties brand started employing recyclable paper for the packaging of its confectionery products worldwide, in an attempt to remove nearly 250 million plastic packs sold every year across the globe. The rising influx of refillable and reusable packaging options will also add to the market growth.

Compostable Foodservice Packaging Market Analysis

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Compostable foodservice packaging market size from the plate segment will reach a significant value by the end of 2032, led by the increasing incentivization by governments and municipalities on the use of compostable materials for addressing waste management and environmental concerns. Compostable plates can be addressed as effective alternatives for environment and human health as they can be composted to create nutrient-rich soil compost for improving soil fertility while supporting sustainable agricultural practices. Increasing number of product launches will also enhance the market outlook. For instance, in July 2022, Hefty introduced compostable printed paper plates that are compostable and manufactured with 98% plant-based materials devoid of PFAS.

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The plastic material segment recorded 45% of the compostable foodservice packaging market share in 2022. Compostable plastics are non-toxic as they decompose back into water, carbon dioxide, and biomass when composted. The rising popularity of bio-plastics from sources, such as sugar beets and seaweed along with the surging governing support to limit single-use plastic (SUP) will outline the industry outlook. For instance, the Indian government, beginning from FY 2023-24, announced its plans to mandate 100% recycling of compostable plastic material in accordance with the Extended Producers Responsibility (EPR).

Compostable foodservice packaging market size from the restaurant segment is estimated to hold a significant revenue share by the end of 2032, attributed to the rising usage of single-use food containers and utensils to limit the environmental impacts. In restaurants, compostable foodservice packaging has grown increasingly popular due to paradigm shift towards eco-friendly packaging in a bid to reduce plastic pollution. To that end, the rising emphasis of leading companies on innovations will drive the segment expansion. For instance, in May 2022, Eco-Products, leading subsidiary of Novolex, unveiled a compostable wrap for foodservice companies that offer takeaway and delivery.

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North America compostable foodservice packaging market size dominated around USD 6.7 billion in 2022, Owing to the surging awareness of environmental issues in the region has compelled consumers and businesses to look for more sustainable alternatives to traditional single-use plastics. The rising implementation of restrictions or bans on single-use plastics by many local governments and municipalities is further favoring the demand for compostable foodservice packaging. The surging focus on improving composting infrastructure as well as waste management practices will also add to the regional market growth.

Compostable Foodservice Packaging Market Share

Some key participants in the compostable foodservice packaging market include

• Biosphere Industries, LLC
• Anchor Packaging Inc.
• Eco-Products, Inc.
• Genpak
• BioBag Americas, Inc.
• Graphic Packaging International, LLC
• Berry Global
• Novolex
• Dart Container Corporation
• Biogas Americas Inc.
• Good Start Packaging
• ECO PRODUCTS INC
• Be Green Packaging LLC
• Huhtamäki
• Georgia-Pacific
• WestRock Company
• Virosac
• BioGreen
• Elevate Packaging
• Smurfit Kappa
• WestRock
• Mondi
• Stora Enso Oyj

Compostable Foodservice Packaging Industry News

• In February 2022, Stora Enso partnered with Picadeli, Europe’s major take-away salad bar firm, to introduce renewable formed fiber lids, which are recyclable, biodegradable, and plastic-free, for replacing single-use plastics in take-away packaging.
• In March 2021, Eco-Products® announced the CMA-W approval from the Compost Manufacturing Alliance (CMA) for one of its Vanguard® clamshells, making it the first-ever CMA approved molded fiber item produced with no-added PFAS.

This compostable foodservice packaging market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2018 to 2032, for the following segments

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Market, By Packaging Type

• Plates
• Bowl
• Trays
• Pouches
• Others

Market, By Material

• Plastic
• Paper
• Bagasse & Seaweed

Market, By End Use

• Restaurants
• Cafe
• Delivery Services
• Others

The above information has been provided for the following regions and countries

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