Global Compostable Plastic Market Worth USD 3.1 Billion By 2034 | CAGR of 10.1%

Introduction

Straits Research published a report, “Compostable Plastic Market Size & Outlook, 2026 to 2034”. According to the study, the global compostable plastic packaging material market size is valued at USD 3.1 billion in 2025 and is projected to expand to USD 7.1 billion by 2035, registering a compound annual growth rate (CAGR) of 10.3%.

Market Dynamics

The compostable plastics market is being strongly shaped by regulatory push and corporate sustainability initiatives. Governments across Europe and the Asia Pacific are enforcing single-use plastic bans, including prohibitions on bags, straws, cutlery, and polystyrene containers, while mandates like the EU Single-Use Plastics Directive and US state-level laws in California and New York create incentives for certified biodegradable alternatives such as PLA and starch-based blends. Material innovation continues to drive market growth as PBAT/PLA blends and bio-based polymers evolve with improved tensile strength, heat resistance, and barrier properties, enabling thinner and more efficient packaging solutions. Agricultural waste and fermentation-derived feedstocks, such as corn stover, have helped reduce production costs by over 50% since 2015, while emerging materials like mycelium and algae-based polymers are opening opportunities for custom-molded applications.

At the same time, high production costs 2-3 times that of conventional plastics and limited industrial composting infrastructure in regions like Asia and Africa remain key restraints, limiting scalability and environmental impact. Nevertheless, opportunities in agricultural mulch films and medical applications are significant, with compostable solutions offering higher crop yields, soil enrichment, and sterile, bio-based alternatives to PVC for single-use healthcare items. These factors collectively position compostable plastics as a growth segment, balancing regulatory mandates, material innovation, and sustainability-driven demand.

Key Highlights

• By Type: The rigid plastics segment dominated the market with the largest share of 54% in 2025.
• By Material: The polyhydroxyalkanoate segment is expected to grow rapidly over the forecast period at a CAGR of 13.2%.
• By End Use: The packaging segment dominated the market with the largest share of 60% in 2025.
• By Region: Europe holds the largest share of the global compostable plastics market at 43% in 2025, driven by strict EU regulations.

Competitive Players

1. NatureWorks LLC
2. BASF
3. Novamont S.p.A.
4. TotalEnergies Corbion
5. Mitsubishi Chemical Group Corporation
6. Danimer Scientific
7. FKuR
8. Green Dot Bioplastics
9. Plantic 
10. Biome Bioplastics

Recent Developments

• In March 2025, NatureWorks LLC unveiled its Ingeo Extend platform (Ingeo Extend 4950D), enabling more efficient production of biaxially oriented PLA (BOPLA) films with faster biodegradation, high clarity, and improved sealing for single-serve food packaging and flexible film applications.

Segmentation

1. By Type
   1. Rigid plastics
   2. Flexible plastics
2. By Material
   1. Polylactic acid
   2. Polyhydroxyalkanoate
3. By End Use
   1. Packaging
   2. Agriculture
   3. Horticulture
4. By Region (2022-2034)
   1. North America
   2. Europe
   3. APAC
   4. Middle East and Africa
   5. LATAM