Plastic Alternative Packaging Market Report 2026

The plastic alternative packaging market size has grown rapidly in recent years. It will grow from $7.24 billion in 2025 to $8.53 billion in 2026 at a compound annual growth rate (CAGR) of 17.8%. The growth in the historic period can be attributed to increasing environmental awareness among consumers, early adoption of biodegradable packaging in food service, growth in organic and natural product packaging, expansion of paper-based packaging alternatives, rising waste management concerns.

The plastic alternative packaging market size is expected to see rapid growth in the next few years. It will grow to $16.06 billion in 2030 at a compound annual growth rate (CAGR) of 17.1%. The growth in the forecast period can be attributed to increasing regulatory restrictions on single-use plastics, rising investments in bio-material research, expansion of sustainable food and beverage packaging, growing demand for zero-waste packaging solutions, increasing adoption of circular economy packaging models. Major trends in the forecast period include increasing adoption of biodegradable packaging materials, rising demand for plant-based packaging solutions, growing use of compostable food packaging, expansion of recyclable and dissolvable packaging formats, enhanced focus on sustainable packaging performance.

Rising environmental concerns linked to the use of plastics are a key factor driving the growth of the plastic alternative packaging market. Plastic products contain harmful pollutants and pose serious risks to human health, wildlife, and the environment. As a result, consumers are increasingly seeking eco-friendly packaging solutions as substitutes for conventional plastic packaging. For example, in January 2024, Earth.org, a Hong Kong-based non-governmental organization, reported that nearly 14 million tons of plastic enter the oceans each year, causing damage to wildlife habitats and marine ecosystems. Without intervention, this volume could increase to 29 million metric tons annually by 2040, and when microplastics are included, the total plastic content in oceans could reach 600 million tons by that time. This growing shift toward plastic alternatives has attracted businesses worldwide, thereby supporting the expansion of the plastic alternative packaging market.

Leading companies in the plastic alternative packaging market are emphasizing the development of innovative solutions such as thermoplastic seaweed-based materials to improve sustainability, reduce reliance on plastics, and lessen environmental impact. Thermoplastic seaweed-based materials are advanced biopolymers derived from regenerative marine biomass that can be processed in a manner similar to traditional plastics while offering biodegradability and compostability. These materials enable eco-friendly packaging production, lower carbon footprints, and better end-of-life outcomes. For instance, in February 2024, Sway, a US-based startup, introduced Thermoplastic Seaweed resin (TPSea), a novel alternative to plastic packaging. This resin is entirely biobased, home-compostable, free from microplastics, and sourced from regenerative ocean crops, with the potential to restore ecosystems and support coastal communities. Given that packaging is the largest contributor to global single-use plastic waste, Sway’s TPSea™ product line - including flexible packaging such as polybags, retail bags, and food wrappers - addresses nearly 30% of all single-use plastic packaging used by consumer brands.

In May 2023, TIPA Corp Ltd., an Israel-based producer of flexible compostable packaging solutions, acquired Bio4Pack GmbH for US$8 million. Through this acquisition, TIPA sought to broaden its product portfolio and strengthen its presence across Europe in order to accelerate the adoption of fully compostable alternatives to traditional plastic packaging. Bio4Pack GmbH is a Germany-based manufacturer specializing in compostable and sustainable packaging products, including compostable films, laminates, paper-based packaging, trays, and nets for food and consumer goods applications.

Major companies operating in the plastic alternative packaging market are BASF, Amcor plc, Tetra Pak International SA, Sealed Air, Evergreen Packaging, Rengo Co. Ltd, International Paper Company, Mondi Group PLC, Futamura Group, SECOS Group, Huhtamaki, BioPak, SIG Combibloc, Greatview Aseptic Packaging, Enviroplast Inc., TerraVerdae Bioworks Inc., Nampak Ltd, Mpact Pty Ltd, Constantia Afripack (Pty) Ltd, Klabin SA.

North America was the largest region in the plastic alternative packaging market in 2025. The regions covered in the plastic alternative 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 plastic alternative packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The plastic alternative packaging market consists of sales of corn-starch-based, mushroom-based, corrugated bubble wrap, seaweed material, and organic sources. 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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