Revenue, 2024
2.50 Bn
Forecast, 2034
8.71 Bn
CAGR, 2025 - 2034
13.30%
Report Coverage
Worldwide
Published By
Vidyesh Swar
Reviewed By
Aditi Shivarkar
Reviewed By
Aman Singh
The global sustainable compostable packaging and labels market is projected to grow from US$ 2.5 billion in 2024 to US$ 8.71 billion by 2034, advancing at a robust CAGR of 13.3% (2025-2034).
Sustainable compostable packaging and labels are reshaping the packaging industry by replacing conventional plastics with eco-friendly, biodegradable, and compostable solutions. These sustainable packaging products, ranging from compostable films, bags, and labels, help reduce carbon emissions, support waste minimization, and comply with global green regulations.
The market is expanding rapidly as consumer demand for environmentally conscious packaging accelerates alongside regulatory mandates for plastic reduction. Adoption is strongest in the food and beverage sector, but it is also growing in daily necessities, pharmaceuticals, and medical applications, where safe, sustainable, and compliant packaging is increasingly required.
Global leaders such as BASF, Amcor, Novamont, NatureWorks, Avery Dennison, Sealed Air, Tetra Pak, and Pactiv Evergreen dominate the market, while innovators like TIPA Compostable Packaging, Vegware, BioPak, and beyondGREEN biotech are pushing advancements in compostable technologies.
Key Highlights
- Market Growth: From US$ 2.5B (2024) → US$ 8.71B (2034) at 13.2% CAGR.
- Strong Demand Drivers: Eco-regulations, rising consumer green preferences, and industry adoption across food, beverage, and healthcare.
- Trade Challenges: U.S. tariff policies creating volatility in costs and supply chains.
- Competitive Landscape: Broad mix of global leaders (BASF, Amcor, Tetra Pak) and niche innovators (TIPA, Vegware, BioPak).
- Regional Outlook:
- North America: High adoption in retail food packaging.
- Europe: Strong regulatory frameworks and circular economy initiatives.
- Asia-Pacific: Fastest growth, driven by large consumer markets in China and India.
- Latin America & MEA: Emerging adoption, with opportunities in food and daily necessities.
Sustainable Compostable Packaging and Labels Market Share, By Type, 2024 (%)
| Segment | 2024 Share (%) |
| Compostable Bags and Films | 62.0% |
| Compostable Packaging Labels | 25.0% |
| Others | 13.0% |
Reason:
- Compostable Bags and Films (62%): Dominates due to the high demand for sustainable packaging in industries like retail, food, and consumer goods.
- Compostable Packaging Labels (25%): Significant but smaller share compared to bags and films, driven by its essential role in labeling and branding for eco-conscious products.
- Others (13%): Represents smaller categories in the broader packaging market.
Sustainable Compostable Packaging and Labels Market Share, By Application, 2024 (%)
| Segment | 2024 Share (%) |
| Food and Beverages | 55.0% |
| Daily Necessities | 18.0% |
| Medical and Pharmaceutical | 15.0% |
| Others | 12.0% |
Reasons:
- Food and Beverages (55%): Holds the largest share, driven by high demand for sustainable packaging in the food industry.
- Daily Necessities (18%): Growing share due to increased awareness and adoption of eco-friendly packaging in personal care products.
- Medical and Pharmaceutical (15%): Steady demand as this sector slowly transitions to sustainable packaging, especially in over-the-counter products.
- Others (12%): Smaller share, consisting of niche applications that contribute to the market.
Sustainable Compostable Packaging and Labels Market Share, By Region, 2024 (%)
| Region | 2024 Share (%) |
| North America | 28.0% |
| Europe | 30.0% |
| Asia-Pacific | 33.0% |
| Latin America | 5.0% |
| Middle East & Africa | 4.0% |
Reasons:
- Asia-Pacific (33%): Strongest regional share due to rapid adoption of sustainable packaging in countries like China and India, driven by eco-regulations and manufacturing scale.
- Europe (30%): Significant share thanks to stringent environmental regulations and the growing demand for sustainable solutions in the European market.
- North America (28%): Large market, with strong trends toward eco-friendly packaging, particularly in consumer goods and food industries.
- Latin America (5%) and Middle East & Africa (4%): Smaller shares due to slower adoption of compostable packaging in these regions, which are still growing in sustainability awareness.
Segments
By Type
- Compostable Bags and Films
- Compostable Packaging Labels
- Others
By Application
- Food and Beverages
- Daily Necessities
- Medical and Pharmaceutical
- Others
By Region
- North America: U.S., Canada, Mexico
- Europe: Germany, France, UK, Italy, etc.
- Asia Pacific: China, Japan, South Korea, Southeast Asia, India
- Latin America: Brazil
- Middle East & Africa: Turkey, GCC Countries, Africa
Tables & Figures
By Type
| Subsegment | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Compostable Bags and Films | 1.55 | 1.75 | 1.96 | 2.21 | 2.49 | 2.80 | 3.15 | 3.55 | 3.99 | 4.49 | 5.05 |
| Compostable Packaging Labels | 0.63 | 0.72 | 0.83 | 0.95 | 1.10 | 1.26 | 1.45 | 1.67 | 1.91 | 2.20 | 2.53 |
| Others | 0.33 | 0.37 | 0.42 | 0.47 | 0.54 | 0.61 | 0.69 | 0.78 | 0.88 | 1.00 | 1.13 |
| Total | 2.50 | 2.83 | 3.21 | 3.64 | 4.12 | 4.67 | 5.29 | 5.99 | 6.79 | 7.69 | 8.71 |
By Application
| Subsegment | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Food and Beverages | 1.38 | 1.54 | 1.73 | 1.95 | 2.18 | 2.45 | 2.75 | 3.09 | 3.46 | 3.88 | 4.36 |
| Daily Necessities | 0.45 | 0.52 | 0.59 | 0.68 | 0.77 | 0.89 | 1.02 | 1.16 | 1.33 | 1.52 | 1.74 |
| Medical and Pharmaceutical | 0.38 | 0.43 | 0.50 | 0.58 | 0.67 | 0.77 | 0.89 | 1.03 | 1.18 | 1.36 | 1.57 |
| Others | 0.30 | 0.34 | 0.39 | 0.44 | 0.49 | 0.56 | 0.64 | 0.72 | 0.82 | 0.92 | 1.05 |
| Total | 2.50 | 2.83 | 3.21 | 3.64 | 4.12 | 4.67 | 5.29 | 5.99 | 6.79 | 7.69 | 8.71 |
By Region
| Subsegment | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| North America | 0.70 | 0.79 | 0.89 | 1.00 | 1.12 | 1.26 | 1.42 | 1.59 | 1.79 | 2.02 | 2.27 |
| Europe | 0.75 | 0.84 | 0.94 | 1.06 | 1.19 | 1.33 | 1.49 | 1.67 | 1.87 | 2.10 | 2.35 |
| Asia-Pacific | 0.83 | 0.95 | 1.09 | 1.24 | 1.43 | 1.63 | 1.87 | 2.15 | 2.46 | 2.82 | 3.22 |
| Latin America | 0.13 | 0.14 | 0.17 | 0.19 | 0.22 | 0.26 | 0.30 | 0.34 | 0.39 | 0.45 | 0.52 |
| Middle East & Africa | 0.10 | 0.11 | 0.13 | 0.15 | 0.17 | 0.19 | 0.21 | 0.24 | 0.27 | 0.31 | 0.35 |
| Total | 2.50 | 2.83 | 3.21 | 3.64 | 4.12 | 4.67 | 5.29 | 5.99 | 6.79 | 7.69 | 8.71 |
List of Figures & Tables
List of Figures
- Sustainable Compostable Packaging and Labels Market Growth (2024-2034) – From US$ 2.5B (2024) → US$ 8.71B (2034), at 13.2% CAGR
- Sustainable Compostable Packaging and Labels Market Share, By Type, 2024 – Compostable Bags and Films: 62.0%, Compostable Packaging Labels: 25.0%, Others: 13.0%
- Sustainable Compostable Packaging and Labels Market Share, By Application, 2024 – Food and Beverages: 55.0%, Daily Necessities: 18.0%, Medical and Pharmaceutical: 15.0%, Others: 12.0%
- Sustainable Compostable Packaging and Labels Market Share, By Region, 2024 – Asia-Pacific: 33.0%, Europe: 30.0%, North America: 28.0%, Latin America: 5.0%, Middle East & Africa: 4.0%
List of Tables
- Sustainable Compostable Packaging and Labels Market Share, By Type, 2024 – Compostable Bags and Films: 62.0%, Compostable Packaging Labels: 25.0%, Others: 13.0%
- Sustainable Compostable Packaging and Labels Market Share, By Application, 2024 – Food and Beverages: 55.0%, Daily Necessities: 18.0%, Medical and Pharmaceutical: 15.0%, Others: 12.0%
- Sustainable Compostable Packaging and Labels Market Share, By Region, 2024 – Asia-Pacific: 33.0%, Europe: 30.0%, North America: 28.0%, Latin America: 5.0%, Middle East & Africa: 4.0%
Frequently Asked Questions
The global sustainable compostable packaging and labels market is expected to witness significant expansion over the next decade. It is projected to grow from US$ 2.5 billion in 2024 to US$ 8.71 billion by 2034, advancing at a robust CAGR of 13.3% during the forecast period 2025–2034. This strong growth reflects the increasing demand for eco-friendly and biodegradable alternatives to conventional plastic packaging.
The adoption of sustainable compostable packaging and labels is being fueled by several key factors. Global eco-regulations aimed at reducing plastic consumption are pushing industries to adopt greener solutions. At the same time, consumer preferences are rapidly shifting toward environmentally responsible products, which is boosting demand. Furthermore, industries such as food and beverages, healthcare, and daily necessities are increasingly adopting these solutions to ensure safety, sustainability, and compliance with environmental standards.
The market features a strong mix of global leaders and innovative niche players. Leading companies such as BASF, Amcor, Novamont, NatureWorks, Avery Dennison, Sealed Air, Tetra Pak, and Pactiv Evergreen hold dominant positions due to their broad product portfolios and global reach. Alongside these leaders, innovators such as TIPA Compostable Packaging, Vegware, BioPak, and beyondGREEN biotech are introducing advanced compostable technologies that are reshaping the packaging industry and driving new growth opportunities.
Despite its rapid growth, the market faces several challenges, particularly related to global trade. U.S. tariff policies are creating cost volatility and supply chain uncertainties, which can disrupt the flow of sustainable raw materials and products. Such trade barriers not only increase operational costs but also pose hurdles for companies seeking to expand their footprint in international markets. These challenges highlight the need for collaborative policies and global alignment to support the expansion of compostable packaging solutions.
Regional adoption of compostable packaging and labels varies across the globe. North America is witnessing high adoption, particularly in retail food packaging, while Europe leads with strong regulatory frameworks and circular economy initiatives that promote sustainability. Asia-Pacific is emerging as the fastest-growing region, driven by large consumer markets in China and India, which are embracing eco-friendly packaging solutions. Latin America and the Middle East & Africa are still in the early stages but present substantial opportunities, especially in food packaging and daily necessities.
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Sustainable Compostable Packaging and Labels Market Size and Statistics
The global Sustainable Compostable Packaging and Labels market is projected to grow from US$ 2.5 billion in 2024.
