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Compostable Food Service Packaging Market Size is Expected to Reach at USD 27.29 Billion by 2031 With CAGR of 4.8% | Rising Environmental Concerns Drive Market Growth


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“According to the SNS Insider report, the Compostable Food Service Packaging Market Size was valued at USD 18.75 billion. SNS Insider forecasts predict a rise to USD 27.29 billion by 2031”

According to SNS Insider 73% of global consumers are willing to pay more for sustainable products.

This trend aligns perfectly with the growing demand for on-the-go meals, with a recent report indicating that 68% of millennials choose to purchase grab-and-go food options at least once a week. Moreover, stringent government regulations are playing a crucial role. Approx 85% of European countries have implemented some form of plastic packaging ban or tax, pushing food service establishments towards compostable alternatives.

This several of factors environmentally conscious consumers, a thriving grab-and-go food culture, and stricter regulations is creating a strong impetus for the compostable food service packaging market.

Compostable Food Service Packaging Market
Compostable Food Service Packaging Market

Download Free Sample Report of Compostable Food Service Packaging Market @https://www.snsinsider.com/sample-request/4149

Major Players Listed in this Report are:

  • Mondi Group
  • Berry Global Group
  • Biopac
  • Fabrical
  • Smurfit Kappa Group plc
  • Westrock Company
  • Huhtamaki Oyj
  • Clear Water Paper Corporation
  • Ultra Green Packaging Inc
  • Georgia Pacific LLC

A growing focus on sustainability among Gen Z consumers 84% prioritizing eco-friendly packaging presents a lucrative market segment.

Rising government regulations banning or restricting conventional plastic packaging projected to impact 32% of the market by 2031 as per SNS Insider can promote the adoption of compostable alternatives. Technological advancements in bioplastics and improved performance characteristics 67% of industry professionals anticipating significant improvements by 2031 can broaden the applicability of compostable packaging, enticing new customer segments.

Analysis of Demand and Supply Gap:

While regulations like bans on single-use plastics drive consumer preference for compostable options by 82%, production capacity struggles to keep up. This creates a supply gap, particularly for bio-based materials like polylactic acid (PLA) which face feedstock limitations. The strain is evident in lead times for compostable packaging orders, which have reportedly increased by 35% in the past year. Bridging this gap will require a two-way approach. Increased investment in production facilities and exploration of alternative bio-materials are crucial steps.

A 2023 study by SNS Insider found that 42% of foodservice operators consider compostable packaging more expensive than traditional options.

Additionally, a lack of standardized composting infrastructure across regions poses a hurdle, with only 68% of composting facilities in the US equipped to handle these materials according to a 2023 SNS Insider report. Consumer confusion regarding proper disposal at 37%, as per a 2024 survey, further complicates the issue. These factors can lead to compostable packaging ending up in landfills, negating its environmental benefits.

Key Segment Analysis: Growth, Market Share and Key Findings:

Takeout containers, for instance, hold the largest share at around 35%, capitalizing on the rising popularity of food delivery services. Food containers suitable for hot or cold meals follow closely at 30%, highlighting their versatility in restaurants and cafes. Plates and bowls capture roughly 20% of the market, providing to both dine-in and takeaway options. Interestingly, cutlery claims approximately 15%, reflecting a growing awareness of single-use plastic alternatives.

Compostable Food Service Packaging MarketKey Segments:

By Material

  • Plastic
  • Paper
  • Bagasse & Seaweed

By Packaging Type

  • Bowls
  • Cutlery
  • Plates
  • Cups
  • Trays
  • Clamshell
  • Pouches & Sachets
  • Others

By End Use

  • Chain Café
  • Non-Chain Café
  • Chain Restaurants
  • Non-Chain Restaurants
  • Independent Sellers
  • Delivery Catering
  • Others

While North America 67% in 2023 currently holds the lead due to strong environmental awareness and plastic restrictions, the Asia Pacific region is poised for explosive growth.

This rise is driven by a several of factors a booming food service industry particularly in China and India, growing populations, and a nascent but rapidly developing composting infrastructure. Europe projected to be the second-largest market by 2031 is another key player, driven by stringent regulations and a culture of environmental responsibility.

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Competitive Landscape:

Incumbent giants like Huhtamaki and Pactiv hold a significant share, leveraging their robust production capacities and distribution networks. However, they face a growing challenge from nimble new entrants specializing in bio-based materials and boasting eco-conscious credentials.

Around 72% of market growth stems from Asia Pacific, driven by stricter environmental regulations and a rise in disposable income. Meanwhile, North America sits at roughly 18%, with a focus on premium, compostable alternatives. Competition is fierce on the innovation front, with nearly 60% of new product launches centered around improved functionality and faster composting times.

Key Takeaways:

  • Over 70% of consumers are willing to pay a premium for sustainable packaging solutions, reflecting a growing desire to reduce waste and combat plastic pollution.
  • This translates to increased demand for compostable options across the food service industry.
  • Higher production costs for compostable materials can be 20-50% more expensive than traditional plastics.
  • Additionally, a lack of proper composting infrastructure in some regions limits the effectiveness of this solution.

Table of Contents – Key Points

  1. Introduction
  2. Research Methodology
  3. Market Dynamics
  4. Impact Analysis
  5. Value Chain Analysis
  6. Porter’s 5 forces model
  7. PEST Analysis
  8. Compostable Food Service Packaging Market Segmentation, By Material
  9. Compostable Food Service Packaging Market Segmentation, By Packaging Type
  10. Compostable Food Service Packaging Market Segmentation, By End Use
  11. Regional Analysis
  12. Company Profiles
  13. Competitive Landscape
  14. Conclusion


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About Us:

SNS Insider is one of the leading market research and consulting agencies that dominates the market research industry globally. Our company’s aim is to give clients the knowledge they require in order to function in changing circumstances. In order to give you current, accurate market data, consumer insights, and opinions so that you can make decisions with confidence, we employ a variety of techniques, including surveys, video talks, and focus groups around the world.

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Akash Anand – Head of Business Development & Strategy


Phone: +1-415-230-0044 (US)


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