Biodegradable Plastic Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Biodegradable Plastic Packaging Market Report is Segmented by Material Type (Starch Blends, Polylactic Acid (PLA), and More), Packaging Type (Flexible Packaging and Rigid Packaging), End-Use Industry (Food, Beverage, Foodservice, and More), Compostability (Home-Compostable and Industrial-Compostable), and Geography (North America, Europe, Asia-Pacific, MEA, South America). Market Forecasts are Provided in Value (USD).

INSTANT ACCESS

Biodegradable Plastic Packaging Market Size and Share

Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Compare market size and growth of Biodegradable Plastic Packaging Market with other markets in Packaging Industry

Biodegradable Plastic Packaging Market Analysis by Mordor Intelligence

The biodegradable plastic packaging market size stands at USD 3.01 billion in 2025 and is forecast to reach USD 7.70 billion by 2030, expanding at a 20.67% CAGR. The strong trajectory reflects simultaneous regulatory mandates, corporate carbon-pricing policies, and rapid advances in bio-resin processing that together improve economic viability for compostable formats.[1]European Commission, “Single-use plastics,” environment.ec.europa.eu Brand owners now prefer global rather than regional packaging specifications, allowing large volume contracts that lower per-unit costs. Material innovation continues to cut performance gaps with conventional polymers; marine-degradable PHA and heat-resistant PBAT variants now satisfy demanding barrier and temperature requirements. In parallel, municipal waste-diversion targets push food-delivery and retail sectors to adopt certified compost-ready solutions, creating predictable offtake for resin suppliers. The biodegradable plastic packaging market therefore enjoys clear line-of-sight demand that compensates for still-volatile agricultural feedstock pricing.

Key Report Takeaways

  • By material type, Polylactic Acid retained 66.45% of biodegradable plastic packaging market share in 2024, while Polyhydroxyalkanoates are projected to grow at a 25.34% CAGR through 2030. 
  • By packaging type, flexible formats captured 58.77% revenue share of the biodegradable plastic packaging market size in 2024; rigid formats will post the fastest 23.1% CAGR to 2030. 
  • By end-use industry, foodservice held 29.45% of the biodegradable plastic packaging market size in 2024 and is advancing at a 24.68% CAGR. 
  • By compostability, industrial-compostable variants commanded 55.78% share of the biodegradable plastic packaging market size in 2024, while home-compostable lines expand at a 22.56% CAGR. 
  • By geography, Europe led with 35.57% biodegradable plastic packaging market share in 2024; Asia-Pacific represents the fastest-growing region at 24.65% CAGR.

Segment Analysis

By Material Type: PHA Disrupts PLA Dominance

The biodegradable plastic packaging market size for material types remained skewed toward Polylactic Acid, which held 66.45% share in 2024, yet Polyhydroxyalkanoates posted the strongest 25.34% CAGR outlook. PHA’s ability to biodegrade in marine settings satisfies growing coastal-waste legislation, making it the preferred option for straws, cutlery, and high-barrier pouches targeting island and port cities. Manufacturers exploit its broad melt-flow window to mold thicker pharmaceutical vials and personal-care jars that PLA struggles to handle. The segment also benefits from fresh capacity announcements in the United States and Thailand that leverage agricultural residues instead of food-grade sugar sources, insulating it from feedstock swings.

PLA remains cost-competitive where industrial composting exists, supporting bakery films and thermoformed salad tubs in Western Europe. Continuous R&D produced higher-heat Ingeo grades that withstand 105 °C filling temperatures, narrowing earlier performance gaps. PBAT and PBS serve niche heat-resistant or chemical-contact applications, while starch blends dominate ultra-price-sensitive grocery bag programs. The overall material landscape shows a transition from first-generation cost leadership to second-generation performance leadership, reinforcing the long-term diversification of the biodegradable plastic packaging market.

Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

By Packaging Type: Flexible Dominance Faces Rigid Innovation

Flexible formats commanded 58.77% of the biodegradable plastic packaging market share in 2024, underpinned by light-weighted pouches, wraps, and mailers that minimize freight costs for e-commerce and meal-kit delivery. Films processed on retrofitted lines achieve oxygen transmission rates suitable for fresh produce, extending shelf life without secondary wraps. Premium snack brands emphasize transparent windows made from clarified PLA to showcase product integrity, while laminates incorporating PBAT improve puncture resistance.

Rigid formats accelerate at 23.1% CAGR on the back of coffee pods, hot-cup linings, and microwave-ready trays. NatureWorks and machine supplier IMA released a turnkey pod system that meets Keurig and Nespresso specifications and composts in 90 days, opening high-volume beverage channels. Foodservice chains shift from polystyrene clamshells to PHA-lined fiber bowls compatible with industrial composters, satisfying performance and brand-equity goals. The fast-growing rigid segment illustrates how functionality gains erode legacy dominance and broaden total addressable revenue for the biodegradable plastic packaging market.

By End-use Industry: Foodservice Acceleration Outpaces Food Segment

In 2024, the food segment generated the largest volume yet foodservice now advances faster at a 24.68% CAGR. Chain restaurants leverage compostable disposables to save dishwashing labor and tap green marketing value, while municipal green-bin programs remove landfill tipping fees. Stadiums and event venues replicate the model, specifying single-material PLA cups and beer lids that match local industrial composting standards.

Packaged food makers still rely on bio-films for fresh produce, dairy, and confectionery, but adoption cycles are tied to slower retail re-tooling. Beverage brands experiment with PHA-coated paper bottles for chilled juice, while concentrated cleaning products in refill pouches illustrate cross-industry spill-over. Pharmaceutical trials of barrier-coated tablets show promise, though regulatory validation lengthens timelines. Overall, operational convenience and cost-avoidance explain why foodservice leads near-term demand in the biodegradable plastic packaging market.

Biodegradable Plastic Packaging Market: Market Share by End-use Industry
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

By Compostability: Home Solutions Gain Infrastructure Support

Industrial-compostable grades retained 55.78% of the 2024 biodegradable plastic packaging market size because commercial facilities in Europe and select US states guarantee complete breakdown within 6-12 weeks. Closed-loop collection at corporate campuses and stadiums further supports volume. However, home-compostable SKUs are scaling quickly as suburban municipalities distribute kitchen bins and offer curbside pickup. Brands print prominent “home-OK” logos to minimize consumer confusion and avoid fines for incorrect disposal. PHA and advanced PLA blends meet stricter low-temperature disintegration tests under ASTM D6400 and EN 13432, unlocking garden-compost bin channels and boosting the segment’s 22.56% growth rate.

Geography Analysis

Europe’s mature composting infrastructure and comprehensive regulatory backdrop secured 35.57% biodegradable plastic packaging market share in 2024. Regional resin producers benefit from cohesive EN standards and predictable demand created by extended-producer-responsibility fees, while converters profit from proximity to high-growth food delivery platforms now ubiquitous in Paris, Berlin, and Madrid. Government subsidies for separate organic waste collection further aid pack adoption, cementing Europe’s near-term leadership.

Asia-Pacific generates the strongest 24.65% CAGR as India, China, and Thailand enforce phased bans on difficult-to-recycle packaging formats. Chinese directives targeting “non-degradable” plastics in tier-one cities escalate from carrier bags to takeaway containers by 2027, spawning localized plants using cassava and rice-husk feedstocks. India’s state regulations remain fragmented, yet cumulative population coverage draws multinational quick-service restaurants to standardize compostable coating technologies. Australia and New Zealand also adopted comprehensive single-use plastic prohibitions, driving immediate substitution demand throughout Oceania.

North America leverages food-delivery mandates and internal carbon-pricing at Fortune 500 corporations to propel adoption, although regional coverage of industrial composting remains uneven. Latin American megacities such as São Paulo and Mexico City deploy pilot composting hubs, setting the stage for broader growth. In the Middle East and Africa, landfill scarcity and tourism-driven plastic bans create niche opportunities, especially in Gulf Cooperation Council hospitality sectors. Overall, jurisdictional policy cadence and infrastructure investment patterns explain divergent regional growth in the biodegradable plastic packaging market.

Biodegradable Plastic Packaging Market CAGR (%), Growth Rate by Region
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Competitive Landscape

BASF, Amcor, and NatureWorks leverage backward integration into fermentation or polymerization assets, enabling stable output and joint development programs with converters. NatureWorks’ Ingeo upgrades and BASF’s ecovio expansion illustrate investment in differentiated high-heat and barrier grades.[3]BASF, “BASF ecovio innovations,” basf.com Amcor pilots drop-in bio-film solutions on existing pouching lines, marketing speed-to-shelf advantages to multinational brand owners.

Emerging players focus on PHA production from waste oils and agricultural residues, reducing feedstock-cost volatility. United States start-ups backed by venture capital emphasize marine-degradation credentials attractive to coastal states legislating microplastic controls. Asian newcomers supported by rice and cassava processors exploit local biomass availability to build regional supply chains. Strategic alliances dominate: Avantium collaborates with Plastipak to scale FDCA-based polyester bottles, while Pierre Fabre partners with Sorbonne University to target cosmetic applications demanding pharmaceutical-grade purity.

M&A prospects rise as chemical majors seek access to proprietary monomers or anaerobic-digestible additives. Equipment suppliers add bio-compatible retrofits, bundling resins with machinery services to create sticky ecosystems. On the demand side, retailer long-term offtake contracts enhance revenue visibility, encouraging capacity expansions. Competitive dynamics therefore hinge on feedstock security, intellectual-property strength, and ability to validate performance in high-growth end uses of the biodegradable plastic packaging market.

Biodegradable Plastic Packaging Industry Leaders

  1. Bio Packaging Films

  2. Cortec Corporation

  3. Folietec Kunststoffwerk AG

  4. Futamara Group

  5. Amcor plc

  6. *Disclaimer: Major Players sorted in no particular order
Biodegradable Plastic Packaging Market Concentration
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Need More Details on Market Players and Competitors?
Download PDF

Recent Industry Developments

  • February 2025: Dow and New Energy Blue agreed to produce bio-ethylene from corn stover at a new Iowa facility, targeting late-2025 start-up and displacing over 1 million t of CO₂ annually.
  • February 2025: Mitsui Chemicals, Nan Ya Plastics, and Taiwan Mitsui Chemicals launched joint biomass-based plastics market-development efforts in Asia-Pacific.
  • September 2024: Pierre Fabre teamed with Sorbonne University to develop biodegradable bioplastics for cosmetics and pharmaceuticals.
  • June 2024: Thailand approved construction of a Braskem–SCGC bio-ethylene plant that will boost Southeast Asian resin supply.

Table of Contents for Biodegradable Plastic Packaging Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Accelerated bans on single-use petro-plastic packaging across EU and India
    • 4.2.2 Food-delivery app proliferation requiring compost-ready formats in North America
    • 4.2.3 Retailer “plastic-neutral” pledges (e.g., Walmart, Carrefour) boosting demand
    • 4.2.4 Re-tooling of existing film-blowing lines to run bio-resins (CAPEX ? 15 %)
    • 4.2.5 Brand shift to transparent carbon-labelling on packs
    • 4.2.6 Corporate‐level internal carbon-price adoption (>US $70/t) favouring bio-options
  • 4.3 Market Restraints
    • 4.3.1 Tight industrial-composting infrastructure outside Western Europe
    • 4.3.2 Feed-stock price volatility for PLA (corn, sugarcane)
    • 4.3.3 Consumer confusion around “compostable” vs “biodegradable” claims
    • 4.3.4 Mechanical-recycling stream contamination penalties in US and Japan
  • 4.4 Supply-Chain Analysis
  • 4.5 Regulatory and Technological Outlook
  • 4.6 Porter’s Five Forces Analysis
    • 4.6.1 Threat of New Entrants
    • 4.6.2 Bargaining Power of Suppliers
    • 4.6.3 Bargaining Power of Buyers
    • 4.6.4 Threat of Substitutes
    • 4.6.5 Competitive Rivalry
  • 4.7 Industry Ecosystem Analysis
  • 4.8 Innovations in Biodegradable and Bio-based Plastic Packaging
  • 4.9 Comparative Analysis – Petro-plastic vs Biodegradable Packaging
  • 4.10 Bioplastics – Production Landscape
    • 4.10.1 Production Statistics for Bioplastics
    • 4.10.2 Production by Resin Type
    • 4.10.3 Production by Region
  • 4.11 Evolving Trends in the Foodservice/HoReCa Sector
  • 4.12 Emerging Industry Trends

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Material Type
    • 5.1.1 Starch Blends
    • 5.1.2 Polylactic Acid (PLA)
    • 5.1.3 Poly(Butylene Adipate-co-Terephthalate) (PBAT)
    • 5.1.4 Polybutylene Succinate (PBS)
    • 5.1.5 Polyhydroxyalkanoates (PHA)
    • 5.1.6 Other Material Types
  • 5.2 By Packaging Type
    • 5.2.1 Flexible Packaging
    • 5.2.1.1 Bags and Pouches
    • 5.2.1.2 Films and Wraps
    • 5.2.1.3 Labels and Sleeves
    • 5.2.2 Rigid Packaging
    • 5.2.2.1 Tableware
    • 5.2.2.2 Trays and Bowls
    • 5.2.2.3 Food Containers
    • 5.2.2.4 Coffee Cups and Pods
    • 5.2.2.5 Other Rigid Packaging
  • 5.3 By End-use Industry
    • 5.3.1 Food
    • 5.3.2 Beverage
    • 5.3.3 Foodservice
    • 5.3.4 Personal Care and Home Care
    • 5.3.5 Pharmaceutical
    • 5.3.6 Other End - Use Industry
  • 5.4 By Compostability
    • 5.4.1 Home-Compostable
    • 5.4.2 Industrial-Compostable
  • 5.5 By Geography
    • 5.5.1 North America
    • 5.5.1.1 United States
    • 5.5.1.2 Canada
    • 5.5.1.3 Mexico
    • 5.5.2 Europe
    • 5.5.2.1 Germany
    • 5.5.2.2 United Kingdom
    • 5.5.2.3 France
    • 5.5.2.4 Italy
    • 5.5.2.5 Spain
    • 5.5.2.6 Russia
    • 5.5.2.7 Rest of Europe
    • 5.5.3 Asia-Pacific
    • 5.5.3.1 China
    • 5.5.3.2 India
    • 5.5.3.3 Japan
    • 5.5.3.4 South Korea
    • 5.5.3.5 Australia and New Zealand
    • 5.5.3.6 Rest of Asia-Pacific
    • 5.5.4 Middle East and Africa
    • 5.5.4.1 Middle East
    • 5.5.4.1.1 United Arab Emirates
    • 5.5.4.1.2 Saudi Arabia
    • 5.5.4.1.3 Turkey
    • 5.5.4.1.4 Rest of Middle East
    • 5.5.4.2 Africa
    • 5.5.4.2.1 South Africa
    • 5.5.4.2.2 Nigeria
    • 5.5.4.2.3 Egypt
    • 5.5.4.2.4 Rest of Africa
    • 5.5.5 South America
    • 5.5.5.1 Brazil
    • 5.5.5.2 Argentina
    • 5.5.5.3 Rest of South America

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)}
    • 6.4.1 Amcor plc
    • 6.4.2 BASF SE
    • 6.4.3 NatureWorks LLC
    • 6.4.4 Tetra Pak International S.A.
    • 6.4.5 Sealed Air Corporation
    • 6.4.6 Kuraray Co., Ltd.
    • 6.4.7 Taghleef Industries
    • 6.4.8 FKuR Kunststoff GmbH
    • 6.4.9 good natured Products Inc.
    • 6.4.10 Pactiv Evergreen Inc.
    • 6.4.11 ALPLA Werke Alwin Lehner GmbH
    • 6.4.12 Transcontinental Inc.
    • 6.4.13 Plascon Industries
    • 6.4.14 Futamura Group
    • 6.4.15 Cortec Corporation
    • 6.4.16 BioBag International AS
    • 6.4.17 Biome Bioplastics
    • 6.4.18 Bio Packaging Films
    • 6.4.19 Bio Futura
    • 6.4.20 Groupe Barbier
    • 6.4.21 VektoPack
    • 6.4.22 Singular Solutions Inc.
    • 6.4.23 Biogreen Biotech
    • 6.4.24 Plabottles.eu (Global Solutions BV)

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
***In the final report, Asia, Australia, and New Zealand will be studied together as 'Asia Pacific' and the Geography section will also include Rest of Europe, Asia Pacific, and Middle East and Africa.
You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

Global Biodegradable Plastic Packaging Market Report Scope

The study provides market revenue (USD) based on material type, packaging type, and end-use industries. This report analyzes the factors that impact geopolitical developments in the market studied based on the prevalent base scenarios, key themes, and end-use industries-related demand cycles. 

Industry experts and organizations provide volume data for biodegradable plastic packaging products. This data serves as the basis for tracking the market, with the primary metric being the production volume of raw materials utilized in manufacturing finished biodegradable plastic packaging products. Revenue is calculated by factoring in the raw material price and production volume. The derived cost represents the price of the finished product, excluding additional service costs such as printing, transportation, and other related expenses.

The biodegradable plastic packaging market is segmented by material type (starch blends, polylactic acid (PLA), poly(butylene adipate-co-terephthalate) (PBAT), polybutylene succinate (PBS), polyhydroxyalkanoates (PHA), other material types), by packaging type (flexible packaging [bags and pouches, other flexible packaging types [films, wraps], rigid packaging [tableware, trays and bowls, food containers, coffee cups and pods, other rigid packaging types]), by end-use industries (food, beverage, foodservice packaging, personal care and home care, pharmaceutical, other end-use industries), by Geography (North America [United States, Canada], Europe [France, Germany, Italy, Spain, United Kingdom, Russia, Rest of Europe], Asia Pacific [China, India, Japan, Rest of Asia Pacific], Latin America, Middle East and Africa [United Arab Emirates, Rest of Middle East and Africa]). The market sizes and forecasts are provided in terms of value in (USD) for all the above segments.

By Material Type Starch Blends
Polylactic Acid (PLA)
Poly(Butylene Adipate-co-Terephthalate) (PBAT)
Polybutylene Succinate (PBS)
Polyhydroxyalkanoates (PHA)
Other Material Types
By Packaging Type Flexible Packaging Bags and Pouches
Films and Wraps
Labels and Sleeves
Rigid Packaging Tableware
Trays and Bowls
Food Containers
Coffee Cups and Pods
Other Rigid Packaging
By End-use Industry Food
Beverage
Foodservice
Personal Care and Home Care
Pharmaceutical
Other End - Use Industry
By Compostability Home-Compostable
Industrial-Compostable
By Geography North America United States
Canada
Mexico
Europe Germany
United Kingdom
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Australia and New Zealand
Rest of Asia-Pacific
Middle East and Africa Middle East United Arab Emirates
Saudi Arabia
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Egypt
Rest of Africa
South America Brazil
Argentina
Rest of South America
By Material Type
Starch Blends
Polylactic Acid (PLA)
Poly(Butylene Adipate-co-Terephthalate) (PBAT)
Polybutylene Succinate (PBS)
Polyhydroxyalkanoates (PHA)
Other Material Types
By Packaging Type
Flexible Packaging Bags and Pouches
Films and Wraps
Labels and Sleeves
Rigid Packaging Tableware
Trays and Bowls
Food Containers
Coffee Cups and Pods
Other Rigid Packaging
By End-use Industry
Food
Beverage
Foodservice
Personal Care and Home Care
Pharmaceutical
Other End - Use Industry
By Compostability
Home-Compostable
Industrial-Compostable
By Geography
North America United States
Canada
Mexico
Europe Germany
United Kingdom
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Australia and New Zealand
Rest of Asia-Pacific
Middle East and Africa Middle East United Arab Emirates
Saudi Arabia
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Egypt
Rest of Africa
South America Brazil
Argentina
Rest of South America
Need A Different Region or Segment?
Customize Now

Key Questions Answered in the Report

What is the current value of the biodegradable plastic packaging market?

The market is valued at USD 3.01 billion in 2025, with expectations of reaching USD 7.70 billion by 2030 at a 20.67% CAGR.

Which material leads the biodegradable plastic packaging market?

Polylactic Acid leads with 66.45% share in 2024, though Polyhydroxyalkanoates are growing fastest at 25.34% CAGR.

Why is foodservice driving demand for biodegradable packs?

Restaurants and delivery platforms cut waste-disposal fees and meet consumer sustainability preferences, resulting in a 24.68% CAGR for foodservice applications.

How do regional regulations influence adoption?

The EU Single-Use Plastic Directive and similar bans in India, China, and Australia mandate compostable substitutes, providing clear growth visibility across geographies.

What restraints could slow market growth?

Insufficient industrial-composting capacity in emerging economies and feedstock price volatility for PLA remain the chief obstacles to consistent global scaling.

Who are the major players in the biodegradable plastic packaging industry?

Key companies include BASF, Amcor, NatureWorks, Avantium, and emerging PHA producers leveraging agricultural residues for cost-stable supply.

Page last updated on: July 3, 2025

Biodegradable Plastic Packaging Market Report Snapshots