Global Compostable Packaging Equipment Market to Surge from USD 37.5 Billion in 2025 to USD 90.3 Billion by 2035
Compostable Packaging Equipment Market
The USA market for compostable packaging equipment is anticipated to grow at a CAGR of 7.8% from 2025 to 2035.
NEWARK, DE, UNITED STATES, November 12, 2025 /EINPresswire.com/ -- The global compostable packaging equipment market is set for remarkable growth over the next decade, projected to expand from USD 37.5 billion in 2025 to USD 90.3 billion by 2035, registering a robust CAGR of 9.2%. Following steady growth from USD 24.1 billion in 2021 to USD 37.5 billion in 2025, the market is witnessing accelerated adoption of eco-friendly packaging machinery across food, beverage, consumer goods, and healthcare industries, propelled by regulatory mandates and growing consumer demand for sustainable alternatives.
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Market Evolution and Growth Phases
The market’s initial growth phase (2021–2025) reflects rising awareness and adoption of compostable packaging solutions. During this period, manufacturers increasingly focused on integrating sustainable materials into their production lines, preparing the industry for a surge in demand. From 2025 to 2030, the market is expected to grow from USD 37.5 billion to USD 58.2 billion, marking a phase of accelerated expansion. Investment in advanced machinery that enhances efficiency, precision, and speed—including automated production lines and equipment compatible with multiple compostable materials—is driving this growth.
From 2030 to 2035, the market is projected to reach USD 90.3 billion, with broader industrial adoption, expansion into emerging economies, and implementation of technologically advanced machinery contributing significantly. The growth contribution index demonstrates the increasing importance of compostable packaging equipment in the overall packaging sector, with high-capacity, integrated systems boosting both productivity and adoption across industries.
Quick Stats
• 2025 Market Value: USD 37.5 billion
• 2035 Forecast Value: USD 90.3 billion
• Forecast CAGR (2025–2035): 9.2%
• Leading Segment in 2025: Extruders (28%)
• Key Growth Regions: North America, Asia-Pacific, Europe
• Top Players: Bobst, AMUT, Coperion, Windmöller & Hölscher, Other OEMs
Key Market Drivers
The growth of the compostable packaging equipment market is underpinned by global sustainability initiatives and rising demand for alternatives to single-use plastics. Regulatory mandates and increasing consumer awareness are compelling industries to transition toward eco-friendly solutions. Advanced machinery has made it possible to handle diverse biodegradable materials efficiently while maintaining product integrity, reducing operational costs, and enhancing production scalability.
Brands are increasingly investing in sustainable packaging strategies to align with corporate environmental goals, further fueling equipment demand. Innovations such as automation, real-time monitoring, and energy-efficient systems are enabling higher throughput, waste reduction, and seamless integration into existing manufacturing lines.
Segmental Analysis
• By Equipment Type: Extruders, film blowing machines, printing presses, cutting machines, sealing machines, and others. Extruders lead in 2025 with a 28% revenue share due to their ability to efficiently process biodegradable polymers into films, sheets, and other packaging forms.
• By Materials: Paper & cardboard, plant-based fibers, cornstarch, bamboo, and others. Paper and cardboard dominate with 35% share, driven by biodegradability, recyclability, and improved durability through advanced coating technologies.
• By Packaging Type: Flexible packaging, rigid packaging, cutlery & accessories, and paper-based packaging. Flexible packaging holds a 62% share, favored for its lightweight, versatile, and cost-efficient attributes.
• By Automation Grade: Automatic, semi-automatic, and manual.
• By Power Source: Electric, gas, diesel, and hybrid.
• By End Use: Food & beverage, retail & consumer goods, healthcare & personal care, e-commerce & shipping, agriculture & horticulture, and others.
Regional Insights
• China: Leading market with CAGR of 12.4%, driven by expanding e-commerce, consumer goods, and foodservice industries, coupled with government initiatives promoting eco-friendly packaging.
• India: CAGR of 11.5%, supported by growing retail, foodservice, and consumer goods sectors, alongside SME adoption of cost-effective equipment.
• France: CAGR of 9.7%, shaped by regulatory focus on reducing conventional plastics and growing investment in packaging R&D.
• United Kingdom: CAGR of 8.7%, fueled by retail modernization and collaborative international partnerships to enhance technology adoption.
• USA: CAGR of 7.8%, backed by rising demand for automation, high-efficiency machinery, and regulatory pressures encouraging compostable alternatives.
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Competitive Landscape
The market is highly competitive, with leading players focusing on equipment capable of adapting to bio-based materials while maintaining high productivity:
• Bobst: Advanced printing, coating, and lamination systems for compostable substrates.
• AMUT: Extrusion and thermoforming solutions tailored for biodegradable polymers.
• Coperion: Compounding and extrusion systems blending PLA, starch-based resins, and other bio-polymers.
• Windmöller & Hölscher: Blown film and converting applications for industrial-scale compostable packaging.
These companies are leveraging portfolio diversification, pilot testing, and collaborations with resin developers to ensure machine compatibility with emerging substrates, enabling efficient and scalable production for food, retail, and healthcare applications.
Challenges and Opportunities
While growth prospects are strong, the market faces challenges such as high machinery costs, feedstock volatility, complex integration requirements, and regulatory compliance. Skilled labor shortages and the need for technical expertise can also impact production efficiency. However, automation, modular equipment designs, and Industry 4.0 integration are opening new opportunities for manufacturers to improve output, reduce waste, and innovate packaging formats.
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