Compostable Plastic Market Projected to Reach $3.1 Billion by 2027
The global compostable plastic market is expected to reach $3,102.6 million by 2027, growing at a CAGR of 15.4%. This expansion is driven by increasing consumer awareness and favorable government policies for sustainable alternatives.
The global market for compostable plastics was valued at $991.2 million in 2019 and is projected to reach $3,102.6 million by 2027, expanding at a compound annual growth rate (CAGR) of 15.4% from 2020 to 2027, according to a new report by Allied Market Research.
The growth is fueled by a global shift toward sustainable materials as alternatives to conventional plastics, driven by rising environmental concerns and policy support. The increasing availability of renewable feedstock and a growing number of manufacturers are also contributing factors.
Currently, the market is served by an estimated 15-20 manufacturers. These companies are rapidly expanding production capacities to meet rising demand. While compostable plastics are still more expensive than petroleum-based alternatives, ongoing efforts aim to reduce production costs, particularly for materials like PHA.
The packaging sector is the largest consumer, with compostable bags being a significant application. Europe currently dominates the market, accounting for over half of the global share, largely due to stringent environmental regulations. Other regions, including Latin America, the Middle East, and Africa (LAMEA), are anticipated to experience notable growth.