Biodegradable Paper and Plastic Packaging Market Report 2026

The biodegradable paper and plastic packaging market size has grown rapidly in recent years. It will grow from $14.12 billion in 2025 to $15.65 billion in 2026 at a compound annual growth rate (CAGR) of 10.8%. The growth in the historic period can be attributed to growth of eco-conscious consumer behavior, expansion of packaged food consumption, availability of biodegradable raw materials, adoption of paper-based packaging formats, increased focus on waste reduction.

The biodegradable paper and plastic packaging market size is expected to see rapid growth in the next few years. It will grow to $24 billion in 2030 at a compound annual growth rate (CAGR) of 11.3%. The growth in the forecast period can be attributed to increasing regulatory restrictions on single-use plastics, rising investments in biodegradable material innovation, expansion of sustainable packaging adoption across industries, growing demand for recyclable packaging formats, increasing corporate sustainability commitments. Major trends in the forecast period include increasing adoption of compostable packaging solutions, rising use of plant-based plastic alternatives, growing demand for sustainable food packaging, expansion of paper-based flexible packaging, enhanced focus on circular economy packaging designs.

The increasing preference for eco-friendly products is anticipated to drive the expansion of the biodegradable paper and plastic packaging market in the coming years. "Eco-friendly" refers to products that are environmentally safe or cause minimal harm to the planet. Consumers are increasingly choosing eco-friendly packaging due to concerns about the environment, health and safety, corporate social responsibility, and adherence to regulations. This type of packaging utilizes materials that are alternative, recyclable, or biodegradable. For example, in October 2025, according to the European Commission, a Belgium-based executive branch of the European Union (EU), over 109,096 products across Europe now hold 3,384 licenses and display its trusted logo, marking the largest range of eco-friendly options ever offered under the initiative. Consequently, the growing preference for eco-friendly products is driving the growth of biodegradable paper and plastic packaging.

Major companies operating in the biodegradable paper and plastic packaging market are concentrating on creating innovative solutions, including biodegradable packaging (plant-based plastics), digital printing, edible packaging, compostable packaging, recyclable packaging, and nanotechnology-enabled packaging, to address the increasing demand for sustainable and high-performance packaging options. Biodegradable packaging consists of eco-friendly materials derived from plant-based or compostable components that naturally decompose, providing an environmentally responsible alternative to conventional plastics and paper-based packaging. For example, in February 2023, ProAmpac, a US-based flexible packaging company, introduced ProActive Recyclable Paper-1000. This new curbside recyclable paper-based packaging is heat-sealable and offers excellent directional tear properties along with a strong moisture barrier. It is designed for high performance in frozen food applications and secondary packaging. The material also ensures optimal stiffness for enhanced shelf presentation, merging sustainability with functional durability and convenience.

In August 2025, BioPak Pty Ltd, an Australia-based provider of branded compostable and recyclable single-use and reusable packaging products, acquired Bygreen for an undisclosed amount. Through this acquisition, BioPak aims to broaden its sustainable packaging solutions and reinforce its shared commitment to environmental sustainability. Bygreen Pty Ltd is an Australia-based company offering eco-friendly products, including biodegradable paper straws, cutlery, plates, coasters, and other sustainable packaging items.

Major companies operating in the biodegradable paper and plastic packaging market are Riverside Paper Co Inc., SmartSolve Industries, Ultragreen, Tetra Pak Private Limited, Kruger Inc., Amcor PLC, Mondi plc, International Paper, Smurfit Kappa Group, WestRock Company, BASF SE, Stora Enso Oyj, Rock-Tenn Company, DS Smith plc, BagInCo International, Reynolds Group, Huhtamaki Oyj, Innovia Films, Futamura Chemical Co. Ltd., NatureWorks LLC, Novamont S.p.A., Biopac UK Ltd., Vegware Ltd., Eco-Products Inc., Genpak LLC, Pactiv LLC, Be Green Packaging LLC, Green Century Enterprises Inc., BIO-ON S.p.A., TIPA Corp.

Asia-Pacific was the largest region in the biodegradable paper and plastic packaging market in 2025. The regions covered in the biodegradable paper and plastic packaging market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the biodegradable paper and plastic packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The biodegradable paper and plastic packaging market consist of the sales of bags, pouches, containers, boxes, cups, trays, and wraps made from biodegradable materials. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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