Compostable & Biodegradable Refuse Bags Market
Compostable & Biodegradable Refuse Bags Market Overview 2025 to 2035
The compostable & biodegradable refuse bags market is projected to grow significantly, reaching a valuation of USD 319.1 million in 2025 and expanding to USD 654.0 million by 2035. This growth is driven by increasing environmental concerns, government regulations, and rising consumer awareness regarding sustainable alternatives to conventional plastic bags. The market is expected to register a CAGR of 8.5% during the forecast period.
Market Overview
As global pollution levels rise, the demand for eco-friendly waste management solutions has surged. Governments worldwide are imposing stricter regulations on plastic usage, encouraging industries and consumers to shift towards compostable & biodegradable refuse bags. The increasing adoption of these sustainable alternatives in various industries, including retail, healthcare, hospitality, and industrial sectors, is further propelling market expansion.
The demand for compostable and biodegradable refuse bags is also fueled by the growing trend of organic waste management, with businesses and households seeking efficient solutions that align with sustainability goals. Innovations in biodegradable polymer technology have led to improved bag durability, creating opportunities for manufacturers to expand their product range.
Market Dynamics
Key Growth Drivers
- Strict Government Regulations: Nations worldwide are imposing bans on single-use plastics, boosting the demand for biodegradable alternatives.
- Increasing Waste Generation: Urbanization and rising consumerism have led to excessive waste production, driving the need for efficient waste disposal solutions.
- Rising Awareness of Eco-friendly Products: Consumers are increasingly prioritizing sustainability, opting for biodegradable alternatives over traditional plastic bags.
- Technological Advancements in Material Science: The development of starch blends, PBAT, and PLA-based biodegradable bags has improved product performance and market acceptance.
Market Restraints
- Higher Costs Compared to Conventional Plastic Bags: The production of biodegradable bags involves advanced technologies and higher raw material costs.
- Limited Industrial Composting Facilities: In some regions, the lack of composting infrastructure slows down adoption rates.
- Durability and Performance Concerns: Some biodegradable bags degrade faster under specific conditions, which may impact their usability in industrial settings.
Market Segmentation
1. By Capacity
| Capacity Range |
Market Share (%) |
Growth Rate (%) |
|---|---|---|
|
7 to 20 Gallons |
18% |
7.5% |
|
20 to 30 Gallons |
22% |
8.1% |
30 to 40 Gallons | 32% | 8.8% |
|
40 to 55 Gallons |
15% |
7.9% |
|
Above 55 Gallons |
13% |
7.2% |
The 30 to 40-gallon segment dominates the compostable & biodegradable refuse bags market due to its extensive use in households, offices, and restaurants, where efficient waste collection is essential.
2. By Product Type
| Product Type |
Market Share (%) |
Growth Rate (%) |
|---|---|---|
Compostable Bags | 65% | 9.0% |
|
Biodegradable Bags |
35% |
7.5% |
Compostable bags are preferred due to their complete breakdown into organic matter, making them more environmentally friendly than biodegradable alternatives.
3. By Material Type
| Material Type |
Market Share (%) |
Growth Rate (%) |
|---|---|---|
|
PLA (Polylactic Acid) |
28% |
8.2% |
Starch Blends (Corn, Potato, etc.) | 40% | 8.9% |
|
PBAT (Polybutylene Adipate Terephthalate) |
22% |
8.1% |
|
PHA (Polyhydroxyalkanoates) |
10% |
7.5% |
Starch-based compostable bags dominate the market as they are cost-effective, widely available, and degrade naturally without releasing harmful chemicals.
Regional Analysis
Top Performing Markets
| Country |
Market Value (2025) |
Projected Value (2035) |
CAGR (%) |
|---|---|---|---|
|
United States | USD 141.5 million | USD 280.0 million | 8.5% |
|
China | USD 78.7 million | USD 155.0 million | 9.2% |
|
India | USD 35.0 million | USD 76.0 million | 10.5% |
|
United Kingdom | USD 33.0 million | USD 65.5 million | 8.0% |
|
Japan | USD 19.0 million | USD 40.0 million | 7.5% |
China and India are emerging as key markets due to government policies promoting eco-friendly packaging, rising consumer awareness, and an increasing number of bans on single-use plastics. The United States continues to lead in North America, driven by strict environmental regulations and corporate sustainability initiatives.
Key Market Trends
- Rising Demand for Health & Wellness Products: Consumers prefer compostable and biodegradable packaging as part of their shift toward sustainable living.
- Sustainability-Driven Innovations: Companies are investing in bio-based polymers to create high-performance, compostable refuse bags.
- Retail & E-commerce Expansion: Supermarkets and online retailers are increasingly using biodegradable packaging to align with consumer preferences.
Competitive Landscape
Leading companies in the compostable & biodegradable refuse bags market include:
- Mondi Group
- Vegware Global
- BioBag International AS
- Sphere Group
- Plastiroll Oy Ltd
- The Compost Bag Company
- Polybags Ltd
Competitive Strategies:
- Product Innovation: Companies are investing in durable, water-resistant biodegradable bags to cater to consumer needs.
- Mergers & Acquisitions: Businesses are acquiring small, innovative firms to strengthen their market position.
- Expansion in Emerging Markets: Players are expanding in India, Southeast Asia, and Africa, where demand for sustainable packaging is rising.
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Frequently Asked Questions (FAQs)
1. What is the projected market size of compostable & biodegradable refuse bags by 2035?
The compostable & biodegradable refuse bags market is estimated to reach USD 654.0 million by 2035, growing at a CAGR of 8.5%.
2. Which region is expected to lead market growth?
China and India are anticipated to register the highest growth rates due to government restrictions on plastic usage and increasing sustainability initiatives.
3. Why are compostable bags preferred over biodegradable bags?
Compostable bags break down into organic matter without leaving toxic residues, making them more environmentally friendly than biodegradable bags.
4. What are the major factors driving the market?
- Government bans on single-use plastics
- Consumer preference for sustainable products
- Growth in waste management awareness
5. Which industry segments are the largest consumers of compostable & biodegradable refuse bags?
- Retail & consumer sectors
- Healthcare & hospitality industries
- Industrial waste management services
Conclusion
The compostable & biodegradable refuse bags market is set for substantial growth, driven by rising environmental awareness, strict government policies, and advancements in sustainable packaging technologies. The shift towards eco-friendly waste management solutions presents lucrative opportunities for businesses.
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