North America Compostable Foodservice Packaging Market Key Players and Forecast by 2027

The compostable foodservice packaging market in North America was valued at US$ 4,051.36 million in 2019 and is projected to reach US$ 6,139.42 million by 2027; it is expected to grow at a CAGR of 5.5% from 2020 to 2027.

Compostable packaging materials are those materials which do not cause any harm to the environment and can easily compost under certain given conditions. These types of packaging materials are composed of organic matter and do not involve the use of fossil fuels in production. This serves as one of the potential benefit for the growth of the market as there is minimum or no need to create burden on fossil fuel. With the growth of foodservice industry along with rising inclination towards environment friendly packaging materials, the use of compostable packaging materials in foodservice has risen considerably. With the rising concerns towards depletion of natural resources coupled with growing focus towards environment sustainability and zero-waste, the use of compostable form of plant-based material is expected to gain traction in foodservice industry.

In 2019, the US contributed to the largest share in the North America compostable foodservice packaging market. The growth of the compostable foodservice packaging market in this country is primarily attributed to a significant shift of the consumers towards convenience food. The population growth, the surge in disposable income, and an increase in the working population are creating a need for more packaged and ready-to-cook food. The busy lifestyle of the working populace has increased the consumption of convenience food, which has boosted the growth of compostable foodservice packaging in the US. The compostable foodservice packaging also provides safety and is hygienic, which are other reasons for the growing demand for compostable foodservice packaging products. The companies present in the foodservice packaging sector continuously focus on new trends and enhancement in food packaging, improving food quality and safety. Besides, with many innovations, like biodegradable plastic and bioplastic that can mitigate environmental risk, hence the demand for plastic material is rising in the US.

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North America Compostable Foodservice Packaging Market: Strategic Insights

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The COVID-19 pandemic was first reported in Wuhan, China, in December 2019. The pandemic is adversely affecting economies and industries in various countries due to lockdowns, travel bans, and business shutdowns imposed by governments. Chemical and material is one of the major industries suffering serious disruptions such as supply chain breaks, technology events cancellations, and office shutdowns. The US has the highest number of confirmed cases of COVID-19, as, compared to Canada and Mexico. This is likely to impact the chemicals & materials industry in the region as, due to the COVID-19, the supply chain is likely to get affected and may negatively impact the North America compostable foodservice packaging market.

Market Insights

Advancement and Development in The Packaging Industry

Packaging food materials ensure smooth logistics, also provides adequate product protection, and significantly influences consumer purchasing behaviour. Packaging, therefore, fulfils many different functions, plus it also meets an endless diversity of customer requirements. The recent increase in incomes in developed countries has led to a rise in living standards that includes significantly higher consumption of packaged foods. As a result, food safety guidelines have been more stringent than ever. Since packaging first became a “thing” on the internet of things, its role in the customer journey has extended far beyond the shelf. This has had a transformative effect in several ways, including smart packaging, which helps cut down food waste in complex, global supply chains. Technology is also improving the packaging industry. Advancements in plastic and paper chemistry now allow recycling to be more comfortable and more convenient than ever. Thus, advancement and development in the packaging industry have boosted the North American compostable foodservice packaging market in the forecast period.

Packaging Type Insights

Based on packaging type, the compostable foodservice packaging market is bifurcated into trays, cups and plates, cutlery, clamshell, bowls, and pouches and sachets, and others. The cups and plates segment dominated the market in 2019 and is expected to register a higher CAGR during the forecast period. Cups and plates are leak-proof disposables and eco-friendly, which are made out of recycled paper. The rising demand for eco-friendly, sustainable, and safe cutlery, owing to increasing restaurants, fast food joints, and cafeterias, drives the need for compostable plates and cups. Environment-friendly cutleries such as disposable plates and cups are considered as a feasible alternative which offers convenience in handling and does not affect environment. The market for cups and plates in North America is primarily driven by the well-established food and beverage industry in the country. Characterized by the hectic lifestyle of most of its population, North America stands as a witness to a steadily increasing fast food consumption. The on-the-go coffee culture has also led to the expansion of prominent coffee shops, which has boosted the sales of cups and plates for serving and packing beverages and snacks. Moreover, numerous eminent brands, such as Starbucks, are replacing plastic packaging with cups and plates, owing to the enhanced focus towards sustainable development. Various market players are also introducing 100% recyclable, compostable disposables made with fiber-based raw materials.

Material Insights

Based on material, the compostable foodservice packaging market is bifurcated into paper and paperboard, compostable plastic (bio-plastic), and others. The paper and paperboard segment led the compostable foodservice packaging market in 2019. Paper sees renewed interest as a packaging alternative, especially in foodservice markets. Functional paper-based boxboard barrier material engineered for takeout food containers and more are certified as compostable. The demand for paper and paperboard have increased with the growing concept towards recyclability and sustainability. The use of paper based packaging helps to effectively renew, recycle and compost the material along with adding the value to the product in rising eco-conscious consumer market. The paper also provides an excellent printing substrate with the potential for high-quality graphics to communicate brand values (and sustainability credentials) virtually in terms of shelf-appeal. Packaging suppliers are switching their focus from plastic to paper and paperboard as it provides environmental benefits in terms of renewability, recyclability, and compostability and is creating a vision of long-term commercial viability in future. Paper-based packaging appears well-positioned for a continued upward trend in a North America market driven by a sustainability plan.

A few players operating in the North America compostable foodservice packaging market are Genpak, LLC; Good Start Packaging; Dart Container Corporation; Graphic Packaging International, LLC; WestRock Company; Be Green Packaging; Biobag Canada Inc.; ECO PRODUCTS INC. among many others. Major players in the market focus on strategies such as mergers and acquisitions, and product launch to increase the geographical presence and consumer base globally. For instance, in 2019, Eco-Products, a brand of Novolex, has announced the launch of a line of compostable utensils for use in Cutlerease, a new dispenser offering consumers one fork, knife, or spoon at a time. The patented system improves cleanliness, eliminates waste, saves space and provides consumers with a more efficient way to purchase compostable utensils.

Report Spotlights

• Progressive industry trends in the North America compostable foodservice packaging market to help players develop effective long-term strategies
• Business growth strategies adopted by developed and developing markets 
• Quantitative analysis of the market from 2017 to 2027
• Estimation of the demand for compostable foodservice packaging across various industries
• PEST analysis to illustrate the efficacy of buyers and suppliers operating in the industry to predict market growth
• Recent developments to understand the competitive market scenario and the demand for compostable foodservice packaging
• Market trends and outlook coupled with factors driving and restraining the market growth
• Decision-making process by understanding strategies that underpin commercial interest with regard to the market growth
• North America compostable foodservice packaging market size at various nodes of market 
• Detailed overview and segmentation of the market as well as its dynamics in the industry
• Compostable foodservice packaging market size in various regions with promising growth opportunities

North America Compostable Foodservice Packaging Market – ByPackaging Type

• Trays
• Cups and Plates
• Cutlery
• Clamshell
• Bowls
• Pouches and Sachets
• Others

North America Compostable Foodservice Packaging Market – By Material

• Paper and Paperboard
• Compostable Plastic (Bio-Plastic)
• Others

North America Compostable Foodservice Packaging Market – By Country

 

• US
• Canada
• Mexico 

Company Profiles

• Genpak, LLC
• Good Start Packaging
• Dart Container Corporation
• Graphic Packaging International, LLC
• WestRock Company
• Be Green Packaging
• Pactiv LLC
• Anchor Packaging
• Biobag Americas Inc.
• ECO PRODUCTS INC.

Report Scope

North America Compostable Foodservice Packaging Market Report Scope

North America Compostable Foodservice Packaging Market Players Density: Understanding Its Impact on Business Dynamics

The North America Compostable Foodservice Packaging Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.