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 composed of organic matter and do not involve the use of fossil fuels in its production. With the growth of the foodservice industry, along with rising inclination toward environment-friendly packaging materials, the use of compostable packaging materials in foodservice has risen considerably. With the rising concerns toward the depletion of natural resources, coupled with growing focus toward environment sustainability and zero-waste, the use of compostable form of plant-based material is expected to gain traction in the foodservice industry.
Based on material, the compostable foodservice packaging market is segmented into paper and paperboard, compostable plastic (bio-plastic), and others. The compostable plastic (bio-plastic) segment dominated the market in 2019. Compostable plastic is entirely produced out of organic matter without any fossil fuel involvement in raw materials. Compostable or biodegradable bioplastics, most commonly used for utensils, are marketed as a sustainable alternative to single-use plastic. 100% cutlery is made from recoding bio-plastic, produced from a rapidly renewable starch sourced from non-GMO crops. The global trend toward pre-packed food and foodservice packaging has increased the plastic production. Therefore, a large number of retailers and foodservice industries are focusing on the environmentally compatible packaging. Compostable plastic can offer a cleaner and more convenient than non-disposable containers for people to collect food scraps for composting.
The companies in North America are continuously enhancing the overall business processes to meet customers' demand for high-quality products and services in the best possible way. North America continues to complement market growth due to the wide acceptance of certified compostable foodservice ware that meets regulatory requirements. The North American compostable foodservice packaging market is primarily driven by factors such as a significant shift of the consumers toward convenience food and on-the-go lifestyles of the consumers. Moreover, increasing preference for ready-to-eat food and changing consumer demand patterns regarding food packaging drives the demand for compostable foodservice packaging in North America. With rising health consciousness among consumers in North America, many non-commercial and commercial foodservice outlets serving nutritious meals have emerged over the past few years. This has created the need for sufficient packaging for the foodservice outlets. A key trend that is projected to affect the North American compostable foodservice packaging market in the coming year is the advent of smart and intelligent packaging materials in the food industry.
The COVID-19 pandemic is adversely affecting economies and industries in various countries due to lockdowns, travel bans, and business shutdowns imposed by governments. Chemicals & materials is among the major industries suffering serious disruptions such as supply chain breaks, technology events cancellations, and office shutdowns. The US reported the highest number of confirmed COVID-19 cases in North America. This is likely to impact the chemicals & materials industry in the region as the supply chain is likely to get affected and may negatively impact the North America compostable foodservice packaging market.
Genpak, LLC; Good Start Packaging; Dart Container Corporation; Graphic Packaging International, LLC; WestRock Company; Be Green Packaging; Biobag Canada Inc.; and ECO PRODUCTS INC. are among the players operating in the North America compostable foodservice packaging market.
The overall North America compostable foodservice packaging market size has been derived in accordance with both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the compostable foodservice packaging market.