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Compostable Pouches Market

Market Insights on Compostable Pouches covering sales outlook, demand forecast & up-to-date key trends

Compostable Pouches Market : Global Industry Analysis 2016 - 2020 and Opportunity Assessment 2021 - 2031

Compostable Pouches Market Overview

According to the latest report on compostable pouches market shows that globally the demand for compostable pouches is anticipated to grow at a CAGR of 6% by the next decade. Moreover, the sales of compostable pouches is expected to increase exponentially over the forecasted period, owing to the demand of green packaging formats across the world.

Compostable Pouches Market: Market Outlook

Over the last few years, consumers are more inclined towards flexible packaging formats, owing to their benefits such as ease in handling, less storage space, light in weight, etc. Also, rising environmental concerns has grabbed the attention of many consumers.

Therefore, various end-use industries are targeting the changing consumer needs and shifting towards sustainable packaging solutions, and are gradually coming up with an affordable recyclable pouch solution.

Compostable pouches are easily recyclable and are great for the environment. Typically composting is a fast process so, these pouches require a specific setting in order to break down. Once broken down, compostable pouches and their organic matter will make nutrient-rich compost.

Compostable pouches are the best alternative to plastic pouches, which take several years to disintegrate.

Apart from sustainability, compostable pouches comply with food grade packaging and also heat sealable. Therefore, the compostable pouches are gaining traction and are foreseen to witness a lucrative market by the end of 2031.

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What all Factors Are Propelling the Growth of Compostable Pouches in the Market?

The major problem associated with plastics is that it pollutes the planet and damage the environment at every step in their lifecycle. Recycling only delays plastic's inevitable purpose to a landfill or the ocean.

With the increasing literacy rate and awareness in people regarding environmental degradation due to plastics, consumer preference is moving towards the adoption of eco-friendly and safe packaging solutions, especially in the foodservice industry.

Therefore, the compostable pouches are expected to register propelling growth during the forecast period.

What Restraints the Growth of Compostable Pouches Market?

The companies and municipalities are searching for different alternatives as the foodservice industry face increasing scrutiny due to awareness of the environmental effects of plastic packaging. Sustainable items have been identified as one of the alternative materials. The organic recycling industry is facing a lot of challenges when it comes to the process of understanding the foodservice operator’s needs.

The confusing regulatory landscape, budgetary factors and performance capabilities hamper the growth of compostable pouches in the market. Business needs to be assured that the sustainable compostable pouches are received by consumers and follows the regulatory framework.

Price is a constant factor in the compostable pouches business. These packaging formats organically composed and therefore are costly. The manufacturing cost of the compostable pouches is way higher as compared to plastic pouches. Often, recyclable food service items are not recycled due to contamination or because they are coated in food waste, which lowers the value. This can raise constant challenges with compostable pouches.

Ismail Sutaria
Principal Consultant
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Which Lucrative Opportunities Are Offered By Compostable Pouches Market?

The ban against the use of plastics has been affirmed by the European Union and as stated by ‘’, 112 countries, states and cities around the world have imposed bans on plastic goods. Because of which, consumers are moving towards non-hazardous and natural packaging options.

The plastic ban is taken very seriously in the provinces of China, followed by European countries. Plastic pollution is a huge problem which surfaced many wildlife and ocean health issues. Many developing countries have been more inclined to completely ban several types of plastic pouches because they want to eradicate plastic waste.

Among other regions, Africa has been the most pre-eminent since it lacks a robust lobby of plastic manufacturers. Certain exemptions to the trend are Italy, France and Austria, which have banned a few types of plastic pouches and need them to be replaced with compostable ones.

Due to the stringent government regulations and these sustainability concerns, plastic consumption is decreasing which is creating a great opportunity for compostable pouches manufacturers to maximize their sales and financial profitability as well.

Key Market Players of Compostable Pouches Market

  • Rovi Packaging, S.A.
  • R Green
  • NPP Group 
  • RooCreate
  • AMS Global
  • The Compost Bag Company
  • BioBag International AS
  • Parkside Flexibles Ltd.
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Key Market Players in Asia-Pacific Region of Compostable Pouches Market

  • Trivi Industries
  • Easy-Flux 
  • BioGreen Packaging
  • Chromogreen
  • Balson Industries
  • Plasto Manufacturing Company

What Recent Trends are acting in the Compostable Pouches Market?

Paper is considered as the most environment friendly material. Compostable pouches are conventionally made up of plastic material. Also, a few manufacturers of compostable pouches are using PLA to produce these pouches as, they are made of renewable resources and it breaks down under certain conditions into harmless natural compounds.

Apart from the above mentioned materials, corn plastic is widely trending amongst the compostable pouches manufacturers. Corn plastic is made from PLA, and are highly adopted by a few consumers. Although, it is a long process yet various research & developments are undergoing to adapt the corn plastics in the packaging industry.

What Makes China and India an Important Market for Compostable Pouches?

Asia Pacific region is likely to witness a huge rise in compostable pouches usage due to rapid penetration and expansion of food service industry in India, China and other emerging nations.

Furthermore, high production capabilities and easy raw material availability is anticipated to increase the sales of compostable pouches, making India and China to have an important market for compostable pouches.

What Was The Impact of Covid-19 On Compostable Pouches Market?

COVID-19 has led to a shift in consumer preferences as the focus now turned towards the use of technology and contact-less food services. Demand for compostable pouches depends on the various end-uses such as restaurants, hotels, cafes and online food delivery. 

Compostable pouches can be extremely useful in food packaging via online food delivery systems as these can reduce the risk of infection and will also ensure food safety.

Further, the growth of compostable pouches is likely to flourish owing to increased awareness of consumers regarding the origin and packaging of food and beverage.

Moreover, the shifting consumer preference into the online food delivery systems and take away formats because of the shutting down of dine-in systems in restaurants and cafes, these factors are anticipated to boost the growth.

Global Compostable Pouches Market Segmentation

Segmentation based on Material Type:-

  • Paper
  • Starch Blends
  • PLA

Segmentation based on Product Type:-

  • Stand Up Compostable Pouches
  • Flat Compostable Pouches

Segmentation based on the End User:-

  • Commercials
    • Hotels and Restaurants
    • Food Service Outlets
    • Food Malls
    • Others
  • Households

Segmentation based on Region:-

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Oceania
  • Middle East and Africa
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Compostable Pouches Market