The market for compostable packaging is growing 6.2% a year, which is not a surprise, given both brands’ and consumers’ concerns about the growing plastic waste crisis. With only 9% of all plastic produced each year actually being recycled, plastics are polluting land and waterways, killing wildlife and entire ecosystems, and posing a growing threat to human health. If nothing changes, plastic waste will triple by 2060.

Compostable plastic packaging offers one of the best ways to change this dire situation. These innovative plastics ensure that no damaging waste is left behind – and more than that, they produce valuable agricultural compost. While challenges do remain, market demand, policy, and innovation are all fueling the growth of compostable packaging.

Meeting real market needs in a more sustainable way

Compostable plastic is also more sustainable because in addition to breaking down into compost, it often contains bio-based polymers, which reduce the reliance on petroleum for making plastics. Greener inputs, even as just a percentage of the raw materials needed to make compostable plastics, help shrink the carbon footprint of packaging’s entire lifecycle.

While many types of paper packaging are also compostable, compostable plastic packaging can meet needs that paper often does not: Compostable plastic packaging keeps goods dry and can be transparent. These two qualities are often needed when shipping items, or when consumers want to view the contents of what they are buying, which is especially important for fresh produce and other food. As more brands embrace compostable plastic packaging, consumer awareness is growing as well, with more people beginning to prefer items that use compostable packaging.

Composting as a growing part of waste management

Policymakers are driving the growth of compostable packaging. The United Nations states in its proposed road map to reduce plastic waste by 80% by 2040 that compostable packaging needs to play a larger role.

Other changes include the growing number of jurisdictions in the United States that have launched curbside pickup and other programs to make composting items easier for residents. As consumers become more used to composting in general, it is likely that compostable packaging will become more common.

Innovation Means More and Better Compostable Plastics

Meanwhile, innovations in how compostable packaging is made, along with new technology for composting, are among the forces working to increase the use of this type of packaging. Like traditional plastic, compostable plastic is made from polymers, chains of repeating molecules. With the help of artificial intelligence, research and development teams are able to identify new combinations of polymers – including some made from bio-based materials like corn and other plants – that can be used to make increasingly durable compostable packaging. The process is also likely to become less expensive in coming years.

Technology is also improving the composting process, with robotic sorters that can quickly remove contaminants from loads of compostable waste, allowing composting facilities to accept more waste, and to save on sorting costs and time. In addition, sensors, and technology like machine vision, can track conditions like heat and moisture, and make adjustments on the spot to ensure faster and better composting. 

This combination of consumer demand, policy, and tech innovation is putting compostable plastics on a growth trajectory for 2024 and beyond, offering a practical solution that is also truly healthy for the planet.