Compostable Packaging Market Size, Insights and Growth Prospects

As global industries face mounting pressure to reduce plastic waste, compostable packaging is emerging as one of the most practical alternatives to conventional plastics. The compostable packaging market valued at US$77.0 Bn in 2025 , the market is forecast to expand to US$118.9 Bn by 2032 , advancing at a CAGR of 6.4% . With regulatory mandates, corporate sustainability pledges, and rising consumer expectations, compostable solutions are quickly moving from niche adoption to mainstream packaging systems. Market Overview and Key Segments The compostable packaging industry is led by Polylactic Acid (PLA) , which is set to command 34.2% of the material segment in 2025 due to its balance of cost-efficiency and industrial composting compatibility. Within product categories, Bags & Pouches account for the largest share at 32.7% , while Films & Wraps are projected to grow the fastest thanks to their widespread use in e-commerce and fresh produce applications. Food pa...