Compostable Foodservice Packaging Market is expected to reach US$ 19.9 Bn in 2022, likely to surge at a vigorous 5.5%

Press Release from Future Market Insights

With a predicted CAGR of 5.5 percent from 2022 to 2029, the global market for compostable foodservice packaging is expected to reach US$ 19.9 billion in sales in 2022 and US$ 28.8 billion by 2029. Trays and cups are expected to make up more than 45 percent of the total biodegradable foodservice packaging sold worldwide in 2022, out of all the packaging types used in this industry.

Nearly one-third of the $6 billion in global sales of biodegradable foodservice packaging is expected to come from the European region in 2022.

Throughout the anticipated period, about half of the compostable foodservice packaging products will be composed of paper and paperboard.

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With plastics becoming one of the biggest challenges in the world right now, brands prolifically using such materials will need to act quickly to find reliable alternatives. Technological innovations are being made to reduce the price of compostable foodservice packaging, and FMI’s study assesses that the global efforts to become a more sustainable society will be instrumental in creating new growth opportunities for the market vendors.

Trays Continue to Gain Preference Over Other Packaging Format

According to the study, the composite foodservice packaging market is estimated to grow at a CAGR of approximately  5%  through 2029. One of the key growth drivers is a notable spike in the number of quick service restaurants (QSRs), especially in developing countries, which align with todays’ convenience and on-the-go culture. In addition, surging adoption of foodservice disposables, in the view of an increase in the demand for pre-packed food, has been preparing the grounds for compostable foodservice packaging penetration.

The study finds that compostable trays continue to account for relatively large share of manufacturers’ bottom lines, while more focus has been placed on increasing the production of compostable cups, as the category is witnessing rising demand from a multitude of end-use sectors. As the search for sustainable solutions scales up, companies operating in packaging industry are starting to launch a number of products made entirely from plant-based materials including mushroom roots, bagasse, seaweed, and starch derived from maize.

What Makes Paper & Paperboard as Most Preferred Material Type for Producing Compostable Foodservice Packaging?

Cost-effectiveness along with the minimized impact on the environment makes paper & paperboard as most preferred material type by compostable foodservice packaging manufacturers all over the globe.

The paper & paperboard material type is expected to offer a profitable incremental opportunity of US$ 4.9 billion over the forecasted period. The rising number of key industry players switching to paper & paperboard for producing disposable foodservice packaging products can be the reason behind the growing demand for the same.

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Which Region is The Largest Market for Compostable Foodservice Packaging?

As per the region-wise market survey, Europe is projected to account for maximum sales of compostable foodservice cutlery among all other regions of the globe. The rising awareness regarding the harmful effects of pollution on the environment along with consumer bases preferring sustainable packaging products makes it the largest market for disposable foodservice packaging.

The sales of compostable foodservice packaging across Europe is expected to grow 1.4X between 2022 and 2029, due to rising efforts by European Union on reducing the waste generated through food packaging in the region.

Competitive Landscape

Globally renowned compostable foodservice packaging manufacturers are focusing upon expanding their international presence through launching variety of innovative disposable foodservice packaging products to stay ahead of their competitors:-

In September 2021, Huhtamaki Oyj acquired Elif, which is a major supplier of sustainable flexible packaging products to global brand owners.

Key Companies Profiled

  • Huhtamaki Oyj
  • WestRock Company
  • Stora Enso
  • Georgia Pacific LLC
  • Be Green Packaging
  • Berry Global, Inc.
  • Pactiv LLC
  • TIPA Compostable Packaging
  • Genpak, LLC.
  • Virosac S.r.l.
  • Lollicup USA

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Compostable Foodservice Packaging Market by Category

By Packaging Type:

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

By Material Type:

  • Plastic
    • Polylactic Acid (PLA)
    • Polyhydroxyalkanoate (PHA)
    • Polybutylene Succinate (PBS)
    • Polybutylene Adipate Terephthalate (PBAT)
    • Starch Blends
    • Others
  • Paper & Paperboard
    • Coated Unbleached
    • Molded Fiber
    • Other Grades
  • Others

By End Use:

  • Chain Restaurants
  • Non-Chain Restaurants
  • Chain Café
  • Non-Chain Café
  • Delivery Catering
  • Independent Sellers/ Kiosks

By Region:

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Oceania
  • Middle East & Africa

About Us

Future Market Insights (ESOMAR certified market research organization and a member of Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favor the market growth in various segments on the basis of Source, Application, Sales Channel and End Use over the next 10-years.


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