Compostable Garbage Bags Market
The market for Compostable Garbage Bags was estimated at $1.2 billion in 2024; it is anticipated to increase to $1.9 billion by 2030, with projections indicating growth to around $2.8 billion by 2035.
Report Summary
Market Data
Methodology
Table of Contents
Global Compostable Garbage Bags Market Outlook
Revenue, 2024
$1.2B
Forecast, 2034
$2.6B
CAGR, 2025 - 2034
7.6%
The Compostable Garbage Bags industry revenue is expected to be around $1.3 billion in 2025 and expected to showcase growth with 7.6% CAGR between 2025 and 2034. The Compostable Garbage Bags market continues to build momentum as it establishes itself as a fundamental solution for sustainable packaging and environmentally friendly waste management. The market demand grows because of increasing single use plastic bans and municipal organics programs and corporate ESG commitments that focus on circular economy solutions. The adoption of compostable waste management solutions increases because of improved composting infrastructure and better labeling standards and certification compliance and more favorable pricing structures across retail and institutional markets. The improvement of product performance leads to increased procurement confidence. The alignment of incentives between brands and municipalities and waste haulers occurs through Extended Producer Responsibility policies and green procurement mandates.
The production of compostable garbage bags involves using plant based bioplastics such as PLA, PBAT, PHA and starch blends to create bags that break down in industrial or home composting facilities. The bags have controlled decomposition properties, as well as leak and tear resistance, odor containment, and compatibility with food scrap and organic waste segregation systems, all of which are verified through certification marks. The main applications of these bags include household kitchen caddies, curbside organics collection, foodservice and hospitality operations, healthcare and facilities management, and agriculture.
Market Key Insights
- The Compostable Garbage Bags market is projected to grow from $1.2 billion in 2024 to $2.6 billion in 2034. This represents a CAGR of 7.6%, reflecting rising demand across 1 Residential kitchen organics collection and 2 Commercial foodservice & hospitality waste management.
- BioBag International AS, Eco-Products LLC, Vegware Ltd are among the leading players in this market, shaping its competitive landscape.
- U.S. and Germany are the top markets within the Compostable Garbage Bags market and are expected to observe the growth CAGR of 4.9% to 7.3% between 2024 and 2030.
- Emerging markets including Indonesia, Vietnam and Colombia are expected to observe highest growth with CAGR ranging between 8.7% to 10.5%.
- Transition like Bio Based Scale Up is expected to add $61 million to the Compostable Garbage Bags market growth by 2030.
- The Compostable Garbage Bags market is set to add $1.3 billion between 2024 and 2034, with manufacturer targeting Commercial Facilities & Healthcare & Laboratories Applications projected to gain a larger market share.
- With Mandated food waste diversion policies and expanding municipal composting infrastructure accelerate adoption of compostable garbage bags, and Advances in certified biopolymer performance improve compostable garbage bags durability and usability, Compostable Garbage Bags market to expand 108% between 2024 and 2034.
Opportunities in the Compostable Garbage Bags
State organics mandates and zerowaste commitments are also pushing chains and hotels to standardize compostable trash liners. Collaborations with waste haulers, janitorial distributors, and industrial composting facilities are unlocking municipal contracts. The fastest growth will come from heavy duty, 2355gallon ASTM D6400 PLA/PBAT commercial liners for backofhouse organics collection.
Growth Opportunities in North America and Europe
The North American market for compostable garbage bags is driven by the increasing number of curbside organics collection programs, state level food waste bans, and corporate ESG procurement. The opportunities are in private label programs with supermarkets and big box retailers, B2B contracts for horeca and campuses, and e commerce DTC brands targeting zero waste lifestyles. The competitive dynamics are domestic film extrusion alongside imports, with differentiation via ASTM D6400/BPI certification, compost facility acceptance, and contamination reducing designs. The resin pricing for PLA/PBAT and starch blends, FTC Green Guides scrutiny, and municipal specifications affect the margins, while EPR pilots and city mandates support multi year growth.
The EU Green Deal together with mandatory biowaste separation and EN 13432 certification drive Europe's market while boosting retail and horeca adoption. The market presents three main opportunities through Italian and French retailer programs for produce and shopper bags and municipal tenders that expand bio waste collection services and premium market positioning through high strength films. The market competition consists of integrated resin to bag leaders and regional converters who compete through PLA, PBAT, starch blends and BASFs ecovio products based on performance and price. The market faces margin pressure from rising energy costs and stricter labeling requirements and green claims regulations and EPR structures but Eastern European expansion and foodservice chain adoption create long term growth opportunities.
Market Dynamics and Supply Chain
01
Driver: Mandated food waste diversion policies and expanding municipal composting infrastructure accelerate adoption of Compostable Garbage Bags
The combination of landfill bans on organics and mandatory food scrap separation and extended producer responsibility schemes across North America, Europe and APAC also drives rapid investments in composting infrastructure and curbside organics collection and depot networks to create demand for certified compostable liners. Municipal procurement guidelines now require ASTM D6400 or EN 13432 compliance which standardizes products while minimizing contamination and increasing resident participation in organics recycling programs. The policy infrastructure alignment supports the use of kitchen caddy and small bin liners for residential food waste collection because households require odor control and leak resistance and convenient tie top formats that lead to higher capture rates and measurable methane mitigation within circular economy frameworks.
The combination of high clarity PLA/PBAT with PHA modifiers produces stronger puncture resistance and wet strength and heat seal integrity while maintaining EN 13432 and ASTM D6400 certifications. The advancements in material science lead to thinner gauges and odor neutral additives and better shelf life which reduces the cost difference with conventional polyethylene bags. The commercial foodservice back of house organics collection will also experience the fastest growth because these improvements stop leaks in moist food waste and simplify kitchen operations and fulfill sustainability targets for chains without affecting operational efficiency or contamination prevention.
02
Restraint: Premium Pricing and Raw Material Volatility
The high price of compostable garbage bags made from PLA, PBAT and other biodegradable polymers persists because of their limited scale and certification costs and feedstock competition which increases the total cost of ownership for retailers, municipalities and foodservice operators. The premium price of these products reduces price sensitive customer demand which leads municipalities to choose cheaper polyethylene and retailers to restrict product displays and remove certain SKUs thus limiting market penetration and slowing down product movement. The unstable supply chains of biopolymers create longer delivery times which forces distributors to control their stock levels and this disrupts promotional activities and planogram stability and results in inconsistent sales. The perceived performance gaps between biopolymer products and traditional waste management solutions including shorter shelf life and reduced tear resistance in wet organics and limited moisture barrier capabilities increase the overall cost per use which limits their adoption in standard waste management operations.
03
Opportunity: Indias urban households embracing certified compostable garbage bags amid plastic bans, driving rapid adoption and European grocery private labels shifting to EN 13432 home compostable kitchen and produce bags, driving growth
The implementation of nationwide single use plastic restrictions together with CPCB certification under IS/ISO 17088 drives the development of compliant alternatives. The expansion of Swachh Bharat Mission 2.0 through source segregation creates unmet market potential in TierII/III cities through kirana retail and ecommerce. The market will experience its fastest expansion through affordable home compostable 1020L kitchen bags that use cornstarch blends and local manufacturing and municipal body awareness programs.
EU plastic levies and EPR fees are accelerating retailer led packaging transitions. German and French supermarkets are expanding their EN 13432 certified home compostable trash bag offerings through private labels with support from biopolymer suppliers and flexible packaging converters. The market will experience its highest growth rate in cornstarch based 1030L drawstring kitchen bags and produce aisle roll bags which match circular economy merchandising principles.
04
Challenge: Insufficient Composting Infrastructure and Regulatory Fragmentation
The end of life value proposition suffers because limited access to curbside organics collection and industrial composting facilities leads to many compostable bags being sent to landfills which decreases customer willingness to pay and limits market reach. The inconsistent nature of regulations between regions which includes different acceptance rules and labeling standards and enforcement practices creates compliance risks and education expenses that cause retailers to postpone category expansion and public agencies to prevent organics programs from including bags even when they have EN 13432 certification. The ongoing consumer misunderstanding between biodegradable, oxo degradable, home compostable and industrially compostable labels results in higher contamination rates at composting sites and MRFs which leads to more stringent guidelines and fines and reduced acceptance rates that directly reduce market demand. The market sales focus on specific channels like zero waste retailers and premium foodservice operations which restricts large scale production and maintains the infrastructure deficit that hinders market expansion.
Supply Chain Landscape
1
Feedstocks & Resin Supply
NatureWorksNovamontBASF
2
Film Extrusion & Compostable Bag Converting
BioBagEco-ProductsVegware
3
Distribution & Wholesale Channels
UlineBunzlSysco
4
Retail & End-Use
Foodservice & HospitalityMunicipal Organics Collection
1
Feedstocks & Resin Supply
NatureWorksNovamontBASF
2
Film Extrusion & Compostable Bag Converting
BioBagEco-ProductsVegware
3
Distribution & Wholesale Channels
UlineBunzlSysco
4
Retail & End-Use
Foodservice & HospitalityMunicipal Organics Collection
Use Cases of Compostable Garbage Bags in 1 Residential kitchen organics collection & 2 Commercial foodservice & hospitality waste management
1 Residential kitchen organics collection : Households use ASTM D6400/EN 13432 certified 313-gallon compostable caddy liners with star seal bottoms to line countertop pails and standard 13-gallon bins, collecting daily food scraps before tying them off and placing them in curbside organics carts. Many consumers now prefer using green bin bags, which are designed specifically for composting: their breathable, leak-resistant films help control odors, keep bins clean, and encourage wider participation in municipal composting programs while minimizing contamination. Leading players in this segment include BioBag, Natur Bag by Natur Tec, and EcoSafe 6400.
2 Commercial foodservice & hospitality waste management : The commercial kitchen sector uses heavy duty 1355 gallon compostable can liners to cover prep, dish and front of house sorting stations before securing the bags for organics collection toters. The high wet strength and puncture resistance features of these liners minimize leaks and labor and contamination which supports zero waste and LEED goals. The market leaders in this sector are EcoSafe 6400, BioBag, and Stout by Envision BioTuf.
Recent Developments
The compostable garbage bags segment advances through PLA/PBAT bioplastic formulations and downgauging without tear loss and wet strength additives which are certified by EN 13432 and ASTM D6400. The partnership between biopolymer producers and retailers together with investments in starch/PBAT capacity and localized compounding operations reduce costs while stabilizing supply. Vertical integration enables companies to maintain better control over their feedstock supplies.
July 2024 : The states of Washington and Colorado started enforcing compostable product labeling requirements which led BioBag and Eco Products to modify their markings and SKUs for certified compostable garbage bags in those markets.
March 2024 : EU lawmakers agreed on a draft version of the Packaging and Packaging Waste Regulation which defines the authorized applications and identification requirements for certified compostable organic waste bags to support Novamont and BASFs municipal organics collection strategies.
November 2023 : Versalis finished the acquisition of Novamont by adding BioBag International to its portfolio and securing Mater Bi resin supply for compostable garbage bags.
Impact of Industry Transitions on the Compostable Garbage Bags Market
As a core segment of the Packaging industry,
the Compostable Garbage Bags market develops in line with broader industry shifts.
Over recent years, transitions such as Bio Based Scale Up and Circular Collection Integration have redefined priorities
across the Packaging sector,
influencing how the Compostable Garbage Bags market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Bio Based Scale Up
The market for compostable garbage bags is shifting from petrochemical plastics to certified bio based resins because retailers and foodservice operators and municipal buyers follow EPR policies and plastic bans and Scope 3 decarbonization which drives up demand for ASTM D6400 and EN 13432 compliance. The transition in procurement and quality assurance focuses on starch blends and PLA/PBAT formulations and OK compost certification to safeguard compost quality and minimize microplastics. A national grocery chain achieved double digit organics diversion after replacing conventional liners in produce prep and deli rooms while reducing contamination penalties from composters and lowering landfill methane exposure throughout its regional supply chain which led to better sustainability KPIs and total cost of ownership.
02
Circular Collection Integration
The adoption of compostable bags serves as a critical component for closed loop organics systems which connects front of house sorting with curbside collection and industrial composting or anaerobic digestion to reduce contamination rates and hauling costs and greenhouse gas emissions. The transition has created new partnerships between packaging suppliers and haulers and MRF/compost operators through digital traceability and LCA reporting and standardized labeling for consumer education. A metropolitan zero waste program that provided certified compostable liners to multifamily buildings and quick service restaurants led to increased participation and cleaner feedstock for processors and reduced tipping fees which strengthened waste management margins and promoted circular economy results.