Compostable Multilayer Films Market Size & Growth Analysis to 2030

The global compostable multilayer films market size was accounted at around USD 1.5 billion in 2024 and anticipated to register a significant CAGR of over 7.5% during the forecast period from 2025 to 2030. The market is witnessing rapid growth, fueled by rising global demand for sustainable and environmentally friendly packaging solutions. These films, made from biodegradable materials such as polylactic acid (PLA), polyhydroxyalkanoates (PHA), and starch-based compounds, offer similar protective and barrier properties as conventional plastic films while being compostable under industrial or home composting conditions. Increasing environmental awareness among consumers, stringent government regulations banning single-use plastics, and the growing emphasis on circular economy practices are driving market adoption across various industries.

Key sectors such as food & beverages, personal care, and consumer goods are increasingly integrating compostable multilayer films for packaging applications. The food industry, in particular, is the largest end-user due to the need for sustainable packaging that maintains product shelf life and appeal. North America and Europe lead the market, supported by robust regulatory frameworks and eco-conscious consumer bases, while Asia-Pacific is emerging as the fastest-growing region due to industrial expansion and rising sustainability initiatives. As material innovations improve film performance and cost-effectiveness, the market is expected to expand significantly over the next decade.

Market Snapshot:

Market Drivers:

The global compostable multilayer films market is experiencing significant growth, driven by increasing environmental awareness, stringent regulations on plastic usage, and a global shift towards sustainable and eco-friendly packaging solutions. These films, derived from renewable resources such as polylactic acid (PLA), polyhydroxyalkanoates (PHA), and starch-based polymers, offer eco-friendly alternatives to traditional plastics. Innovations in biopolymer technologies have enhanced the durability, flexibility, and barrier properties of compostable films, making them suitable for diverse applications, including food packaging, agriculture, and healthcare. In the food packaging sector, compostable films are gaining popularity due to their ability to maintain product freshness while reducing environmental impact. Advancements in barrier technology have improved the protective qualities of these films, ensuring they meet food safety standards.

The global compostable multilayer films market is also being significantly influenced by increasing corporate investments and collaborations aimed at accelerating the adoption of sustainable packaging. A notable example is the partnership between Polymateria and Toppan Specialty Films, announced in February 2023, which led to the launch of a novel packaging solution that fully biodegrades without leaving behind microplastics or toxic residues. This innovative packaging can decompose within just 176 days under real-world environmental conditions, offering a practical alternative to conventional plastic films. Such initiatives underscore the growing commitment from key industry players to address global sustainability goals, reduce plastic pollution, and respond to consumer demand for environmentally responsible packaging. Furthermore, many leading food and beverage brands are integrating compostable films into their product lines to strengthen brand loyalty and meet increasingly strict regulatory requirements.

Market Trends:

Regulatory Momentum and Policy Shifts

Governments across the globe are stepping up their efforts to curb plastic waste and promote sustainable alternatives through strict regulatory frameworks. One such example is the state of New Jersey in the United States, which has introduced a proposed bill that mandates all packaging sold within the state to be recyclable or compostable by 2034. This includes common packaging materials like bubble wrap, foam peanuts, and flexible films, which are currently not recyclable. Such forward-looking policies are compelling packaging manufacturers and brand owners to accelerate the adoption of compostable solutions. These regulatory shifts not only create a clear demand for compostable multilayer films but also encourage investment in R&D to develop high-performance, eco-friendly packaging materials.

Advancements in Material Science

One of the most impactful trends in the compostable films market is the rapid progress in biopolymer technologies. New-generation materials like polylactic acid (PLA), polyhydroxyalkanoates (PHA), and cellulose-based resins are being engineered to improve the functional properties of compostable films. These innovations allow compostable films to provide superior barrier properties, such as moisture and oxygen resistance, while maintaining flexibility and durability comparable to traditional plastics. As a result, compostable multilayer films are now suitable for a wide range of applications—from food packaging and personal care products to industrial uses. With more startups and major players investing in next-gen materials, this trend is expected to enhance the scalability and commercial viability of compostable packaging.

Expansion of Composting Infrastructure

While the market for compostable packaging is growing, its success is strongly linked to the development of composting infrastructure. In many regions, particularly in the U.S., only a small percentage of the population has access to industrial composting facilities capable of processing these materials effectively. According to recent studies, only around 2 to 3% of U.S. consumers can actually compost certified compostable packaging through municipal services. This lack of infrastructure creates a bottleneck for broader adoption and highlights the need for public-private partnerships to invest in composting networks and consumer education. As governments and companies work to close this gap, increased accessibility to composting will significantly enhance the lifecycle benefits of compostable multilayer films.

Consumer Demand for Sustainable Packaging

Consumer behavior is playing a central role in reshaping the packaging landscape. There is a growing preference for products that align with sustainability goals, with packaging being a critical area of concern. More than ever, buyers are considering the environmental impact of packaging materials and actively choosing brands that use eco-friendly and compostable solutions. In response, major corporations like Unilever, Nestlé, and Coca-Cola have announced commitments to integrate compostable and recyclable materials into their product lines. This growing awareness is compelling companies across sectors to redesign their packaging with compostable multilayer films, helping them meet ESG (Environmental, Social, Governance) targets while boosting brand image and customer loyalty.

Integration of Smart Packaging Technologies

Another trend transforming the compostable packaging market is the incorporation of smart packaging features. With consumer expectations evolving, brands are adopting technologies like QR codes, embedded sensors, and interactive labels to enhance the functionality and traceability of their compostable packaging. These features can provide detailed information about product origins, nutritional content, and disposal instructions—empowering consumers to make informed decisions and correctly compost the materials. This integration not only supports sustainability goals but also enhances the consumer experience, adding value and transparency to eco-friendly products. The convergence of smart tech and compostable materials is likely to open up new avenues for innovation and differentiation in an increasingly competitive market.

Market Opportunities:

The global compostable multilayer films market is poised for significant growth, driven by escalating environmental concerns, stringent regulatory frameworks, and increasing consumer demand for sustainable packaging solutions. This growth is fueled by the rising adoption of compostable materials in various industries, including food and beverage, personal care, and healthcare. Companies are increasingly investing in research and development to enhance the performance and cost-effectiveness of compostable films, making them a viable alternative to traditional plastics.​

A notable development in the industry is the expansion of Biocup, a Mexican eco-packaging company, into the U.S. market. With support from the MileOne Incubator Program, Biocup launched its operations in Laredo, Texas, aiming to capitalize on the higher consumption of disposable containers in the U.S. The company specializes in biodegradable, recyclable, and compostable disposable containers, aligning with the growing demand for sustainable packaging solutions. This expansion reflects the increasing opportunities for compostable packaging companies in new markets, driven by consumer preferences and regulatory support.

Market Segment Insights:

By Material:

The global compostable multilayer films market is bifurcated into type, material, application, and geography. On the basis of material, the PLA (Polylactic Acid) segment is currently the dominant material in the market in 2024, driven by its widespread adoption across various industries. PLA is favored for its biodegradability, renewable sourcing, and versatility in applications such as food packaging, personal care products, and medical packaging. As it is derived from natural resources like corn starch or sugarcane, PLA appeals to both environmentally conscious consumers and businesses looking to align with sustainable practices. The ability to process PLA using conventional plastic manufacturing equipment also contributes to its dominance, making it easier for companies to transition to more sustainable packaging solutions.

However, while PLA is the leading choice, it does face challenges in certain areas such as moisture and oxygen barrier properties, which are crucial for the packaging of perishable goods. To address these issues, manufacturers are often blending PLA with other materials or developing new formulations to enhance its performance. Despite these limitations, PLA remains the go-to material due to its relatively low cost, strong consumer demand for eco-friendly solutions, and continuous innovations aimed at improving its properties. As regulatory pressures to reduce plastic waste increase, PLA’s share in the compostable multilayer films market is expected to continue growing.

By Application:

On the basis of application, the global compostable multilayer films market is further segmented into food packaging, personal care, pharmaceuticals, agriculture, and others. The food packaging segment is the dominant application in the market, primarily due to the growing demand for sustainable packaging solutions in the food industry. As environmental concerns over plastic waste intensify, both consumers and regulatory bodies are calling for alternatives that can reduce the environmental footprint of packaging materials. Compostable multilayer films, which are made from biodegradable materials such as PLA and PHA, provide an effective solution for food products. They offer excellent moisture resistance and barrier properties, which are crucial for protecting the freshness and shelf life of perishable food products. With stricter regulations aimed at reducing single-use plastics and the growing trend of eco-conscious consumerism, food packaging continues to drive the largest share of the market.

This dominance is also supported by major food and beverage companies increasingly adopting compostable films to align with sustainability goals and meet consumer expectations. These films are being used for a wide range of food products, including fresh produce, snack foods, and ready-to-eat meals. The ongoing advancements in compostable film technology—such as enhanced strength, flexibility, and heat resistance—are further fueling their adoption. As regulations around plastic packaging become more stringent, the food packaging segment is likely to remain the leader, as companies strive to offer more sustainable and biodegradable alternatives to traditional plastic packaging.

The compostable multilayer films market research report presents the analysis of each segment from 2020 to 2030 considering 2024 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2025 to 2030.

Historical & Forecast Period

• 2020-23 – Historical Year
• 2024 – Base Year
• 2025-2030 – Forecast Period

Market Segmentation:

By Type:

• High Barrier
• Low Barrier

By Material:

• PLA (Polylactic Acid)
• PHA (Polyhydroxyalkanoates)
• Starch-based Films
• Cellulose-based Films
• Others

By Application:

• Food Packaging
• Personal Care
• Pharmaceuticals
• Agriculture
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

Geographically, the North America dominated the global compostable multilayer films market with the largest revenue share of over 1/3 of the market in 2024, driven by strong environmental awareness and regulatory support. Countries like the United States and Canada have been at the forefront of adopting sustainable packaging solutions, spurred by growing consumer demand for eco-friendly products. Regulatory initiatives such as plastic bans and extended producer responsibility (EPR) regulations are pushing businesses in North America to transition to compostable alternatives. Additionally, many large food and beverage, personal care, and healthcare companies in this region are increasingly opting for compostable packaging to align with sustainability targets and meet consumer preferences for green products. This trend is further supported by increased investments in research and development aimed at improving the performance and cost-effectiveness of compostable films.

Moreover, North America benefits from a well-established market infrastructure, advanced manufacturing capabilities, and the presence of leading companies in the packaging industry. These factors contribute to the region’s continued dominance in the market. Additionally, consumer trends towards sustainability and the rising demand for compostable packaging in food packaging applications are accelerating market growth. As regulatory pressure around plastic waste intensifies globally, North America is expected to maintain its leadership, with both governmental and corporate initiatives driving innovation and adoption of compostable multilayer films across various sectors.

Competitive Landscape:

Some of the leading market players operating in the global compostable multilayer films market are Tipa Corp, Kuraray Co., Ltd., Futamura Chemical Co., Ltd., Taghleef Industries, and BASF SE. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• Tipa Corp
• Kuraray Co., Ltd.
• Futamura Chemical Co., Ltd.
• Taghleef Industries
• BASF SE
• Amcor Plc
• Novamont S.p.A.
• Plastic Suppliers, Inc.
• Others

Key Questions Answered by Compostable Multilayer Films Market Report

• Global compostable multilayer films market forecasts from 2025-2030
• Regional market forecasts from 2025-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2025-2030 covering 15 major countries from the regions as mentioned above
• Compostable multilayer films submarket forecasts from 2025-2030 covering the market by type, material, application, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level compostable multilayer films markets from 2025-2030
• Competitive Landscape and market positioning of top 10 players operating in the market