Compostable Food service Packaging Market Size, Share, Growth, and Industry Analysis, By Type (Utility Trays, Food Trays, Bowls And Cups, Plates and Others), By Application (Restaurants, Bars, Confectioneries and others), Regional Insights and Forecast to 2031

Updated On: 29 April 2024

COMPOSTABLE FOODSERVICE PACKAGING MARKET REPORT OVERVIEW

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The global compostable food service packaging market size was USD 15 million in 2020 and the market is projected to touch USD 19 million by 2026, exhibiting a CAGR of 4.0% during the forecast period.

It is commonly recognized that biodegradable and compostable materials are equivalent. Compostable packaging is composed entirely of organic materials; plastic is not used at all. Materials used to make compostable food service packaging are those that microorganisms in a compost pile may readily decompose. The fact that this kind of packing lessens the quantity of garbage that ends up in landfills makes it significant.

COVID-19 Impact: Increased Demand for Safe and Secure Packaging in the Phase of COVID-19 Hyped the Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

In 2020–2021, COVID-19 had an effect on a number of manufacturing businesses, resulting in workplace closures, supply chain disruptions, and transit limitations. Concerns about food safety and security have increased as a result of the COVID-19 epidemic, which has increased demand for reusable, secure, and environmentally friendly food and beverage packaging. Consumers perceive sustainability as being more and more essential as they come out of COVID-19. Compostable food service packaging is expected to expand in the United States as more customers throughout the world assert that they are prepared to pay extra for environmentally friendly packaging.

LATEST TRENDS

"Increasing R&D to Reduce Prices and Environmental Advantages to Electrode the Market Growth"

Products with readily disposable, eco-friendly materials make up compostable food packaging. Plant-based and recycled materials go into making compostable food packaging. The U.S. compostable food service packaging market is expanding due in large part to the growing demand for environmentally friendly packaging options, an increase in R&D activity, and the introduction of new products.

Government attention to package recycling is growing, which facilitates improvements and better packaging practices that lower final product costs. Leading companies in the food service packaging sector are developing environmentally friendly packaging designs that are readily biodegradable and composed of natural plants and biopolymers.

COMPOSTABLE FOODSERVICE PACKAGING MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into utility trays, food trays, bowls and cups, plates and others.

• Utility Trays: Made of paperboard, utility trays are used to package food and other goods. Depending on what end consumers want, the product comes in a variety of sizes, forms, and styles. Due to the widespread usage of these items by restaurants to serve patrons, there is a considerable demand for them in North America.
• Food trays: Single-serve meals, snacks, and desserts are packaged in these little containers to hold a variety of food items. Paperboard or other materials that may be composted with the food waste from a commercial kitchen are used to make the product.
• Bowls and Cups: In a buffet situation or during a multicourse dinner, bowls are used to serve food and beverages. One uses cups as a drinking vessel. Compostable food service goods, such discreetly wrapped fruit cups, vegetable bowls, and cereal bowls, can also be packaged using these two forms of packing.
• Plates: Usually used to serve salads, desserts, or appetizers, plates are disposable food service packaging pieces.

By Application

Based on application the global market can be categorized into restaurants, bars, confectioneries and others.

• Restaurants: Instead of using typical plastic or Styrofoam containers for leftovers or to-go orders, consider using compostable containers. For takeaway or dining in, compostable forks, knives, spoons, and other tools offer a sustainable substitute.
• Bars: Drinks can be served in compostable cups manufactured of PLA (polylactic acid), which lessens the need for conventional plastic cups. When opposed to plastic straws, compostable straws composed of materials like paper or PLA provide a more environmentally friendly choice.
• Confectionery: Using compostable packaging for candy and other confections may help the environment and highlight sustainability to consumers. Pastries, cakes, and other baked foods can be served on compostable dishes and trays.
• Others: Rather of using single-use coffee cups, compostable lids and sleeves made of PLA or bagasse provide an environmentally friendly option. You can lessen the impact of single-use goods on the environment by using compostable stirrers and napkins. Burgers, fries, and other fast-food products can be packaged in compostable containers to lessen the environmental impact of single-use packaging. For packing meals to go, compostable sandwich wrappers and pouches provide an environmentally friendly choice.

DRIVING FACTORS

"Rising Awareness Regarding Ill Effects of Single-Use Plastics to Brace Up the Market Growth"

The growing awareness of the detrimental effects of single-use plastics and other materials on the environment is a major factor that is anticipated to act as an opportunity and influence the growth of the U.S. market for compostable food service packaging. This will increase the adoption of food service disposables and packaging products.

"Growth in Food Service Industry and Demand for Pre-Packed Foods to Intensify the Market Growth"

The usage of biodegradable packaging materials in the food service sector has increased significantly due to the business's development and expansion as well as consumers' growing preference for environmentally friendly packaging materials. The food service sector is anticipated to use biodegradable plant-based materials as a result of increased worries about the depletion of natural resources, environmental sustainability, and zero-waste practices.

RESTRAINING FACTOR

"High Price and Production Cost of Compostable Materials to Hold Back the Market Growth"

The cost of making compostable packaging materials is still significantly greater than that of conventional versions, which might provide a challenge to the market's ability to expand for compostable food service packaging. Plants like corn and soybeans are used to make compostable polymers, along with cellulose. Cropland must be used to produce the necessary natural ingredients for biodegradable plastic manufacture, rather than being used to grow food. However, the high pricing and production cost of compostable materials for packaging as compared to conventional packaging may restrict the worldwide compostable food service packaging market growth.

COMPOSTABLE food service PACKAGING MARKET REGIONAL INSIGHTS

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"The market is primarily segregated into North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa."

"North America to lead the Market due to Rising Awareness Regarding Sustainability and Composter Role "

North America had a substantial regional market in terms of volume and revenue with the compostable food service packaging market share rising high in the forecasted period. Due to strict requirements by regulatory agencies like REACH, as well as growing awareness of sustainability and the function of composters, the area is likely to maintain its dominance during the projection period. Growing demand from bars, restaurants, and other food service outlets meant that the area held a sizable portion of the market.

KEY INDUSTRY PLAYERS

"Notable Market Players Shaping the Market and Contributing in the Market Expansion"

Due to their significant market influence, major market players are essential for understanding consumer preferences and industry dynamics. Because of these big companies' extensive retail networks and online platforms, customers may easily browse through an enormous variety of clothing selections. Due to their strong global presence and well-known brand, which have also strengthened customer loyalty and confidence, product adoption has increased.

List of Market Players Profiled

• Eco Products Inc. (U.S.)

• Biosphere Industries LLC (U.S.)

• International Paper Company (U.S.)

• Cereplast Inc. (U.S.)

• BioBag Canada Inc. (U.S.)

• Penley Corporation (France)

• Karat (U.S.).

INDUSTRIAL DEVELOPMENT

• July 2022: A production and distribution facility for Karat by Lollicup was developed in Hawaii in order to meet the ongoing demand for eco-friendly products. Because it is fully stocked with environmentally friendly items, service firms on the islands may quickly reach this warehouse. Because of this, the business is now able to offer local chain owners lower shipping rates and quicker processing times.

REPORT COVERAGE

The research provides forecasts for future market expansion in addition to a comprehensive SWOT analysis. It examines a wide range of market classifications, potential uses, and important factors that fuel the market's expansion in order to determine how the industry develops over the next several years. By considering both historical turning points and current trends, the research offers a thorough picture of the market's components and highlights potential growth prospects.