Compostable Foodservice Packaging Market

Compostable Foodservice Packaging Market Size

Compostable Packaging for Foodservice Equipment Reaching USD 17.8 billion in 2022, market size is expected to show 5% CAGR from 2023 to 2032. The industry will be driven by the rising greenhouse gas emissions on account of inappropriate packing methods as well as the explosive levels of environmental issues. According to Climate Collaborative, packaging accounts for 5% of the energy consumed in a food product life cycle, hence a major cause of greenhouse gas emissions.

Particularly derived from fossil fuels, the manufacturing of packaging materials generates greenhouse gases that cause global warming and changes in the environment. Furthermore destroying the ecosystems and damaging wildlife, incorrect disposal of packaging wastes also allows littering and land pollution. Therefore, the increased attention of many food and beverage firms on implementing sustainable packaging solutions including compostable, biodegradable, and recyclable materials for lowering the environmental impacts will determine the market trends.

Compostable Foodservice Packaging Market Growth Drivers & Restraints

The industry development will be affected by the flood of various creative biodegradable foodservice packaging innovations. For example, ProAmpac recently introduced ProActive Recyclable R-2200D, a patent-pending easy-peel open packaging solution meant to provide consumers hassle-free snacking experiences. The market growth may be hampered, though, by the increasing worries about food safety and contamination. When polluted with non-biodegradable items including cutlery, plastic straws, or food waste, compostable food containers can hinder the composting process and hence produce more contaminants in the resultant compost.

COVID-19 Impact

Driven by increased adoption of single-use packaging in many foodservice outlets, including disposable food containers and utensils to restrict the spread of the virus by surface contact, the COVID-19 epidemic favorably impacted the market for compostable foodservice packaging. American fast-food company KFC said in November 2020 that it has started testing a new fiber-based "spork" at a few Canadian sites. Adoption and use of biodegradable alternatives were further driven by the increasing initiatives to solve plastic pollution while supporting sustainability throughout the foodservice sector.

Compostable Foodservice Packaging Market Trends

The industry expansion will benefit from rising popularity of sustainable solutions in packaging to satisfy customers' growing environmental consciousness. The growing need for sustainable packaging solutions has replaced the rising worries about waste and the stronger desire for more environmentally friendly practices. In order to try to eliminate about 250 million plastic packets sold annually worldwide, Nestle's Smarties brand started using recyclable paper for the packaging of its confectionary items internationally in Jan 2021 Furthermore contributing to the market expansion will be the increasing flood of reusable and refillable packaging solutions.

Compostable Foodservice Packaging Market Analysis

Particularly in the catering sector, compostable plates are becoming increasingly in demand. To address environmental concerns and trash management, governments and municipalities are pushing the usage of biodegradable products. The biodegradable foodservice packaging industry has surged as a result; the category predicted to dominate by 2032 is the plate one. For human health and the surroundings, compostable plates are a wise choice. They can be transformed into nutrient-dense compost, therefore enhancing the quality of the soil and helping to support sustainable agriculture. Many businesses are beginning to carry more of these items. Hefty just debuted devoid of PFAS and compostable printed paper plates derived from 98% plant-based resources.

In 2022, 45% of the biodegradable foodservice packaging market share will come from plastic material segment. Compostable plastics are non-toxic since, when broken down back into biomass, carbon dioxide, and water. The industrial view will be shaped by the growing popularity of bio-plastics from sources such sugar beets and seaweed together with the increasing governing backing to minimize single-use plastic (SUP). Starting from FY 2023-24, the Indian government, for example, declared its intentions to compel 100% recycling of biodegradable plastic material in line with the Extended Producers Responsibility (EPR).

Attributed to the growing use of single-use food containers and utensils to limit the environmental impacts, compostable foodservice packaging market size from the restaurant segment is expected to hold a considerable revenue share by the end of 2032. Compostable foodservice packaging has become somewhat popular in restaurants because of the paradigm change towards environmentally friendly packaging aimed at lowering plastic pollution. Therefore, the segment expansion will be driven by the growing attention of top corporations on innovations. For example, Eco-Products, a Novolex leading subsidiary, debuted a compostable wrap for foodservice businesses with takeout and delivery in May 2022.

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

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