Retailers Quickly Standardize on Certified Compostable Formats
Retailers facing tightening state and municipal plastic bag ban rules are increasingly specifying certified compostable paper bags with documented certification testing, rather than the conventional standard paper bag that dominated retail checkout when plastic ban scrutiny was less stringent in prior years. This shift commands meaningfully higher material cost than conventional standard bags given the enhanced certification requirements involved. Suppliers report compostable orders now outpacing standard bag orders across several major retail accounts tracked this cycle, a clear reversal from just a few years earlier across the category broadly. This reversal is prompting several converters to rethink their format mix. Measured on its own, the retail paper bag market is valued by MMA at USD 5.2 billion in 2025, heading to USD 10.7 billion by 2036.
Market Impact: Drives roughly 7% of demand








