Compostable & Biodegradable Refuse Bags Market Size & Share, By Material (PLA, PHA, PBAT, PBS), Capacity, Application (Retail & Consumer, Industrial, Institutional) - Growth Trends, Regional Insights (U.S., Japan, South Korea, UK, Germany), Competitive Positioning, Global Forecast Report 2025-2034

Market Outlook:

Compostable & Biodegradable Refuse Bags Market size is expected to expand from USD 398.91 million in 2024 to USD 807 million by 2034, demonstrating a CAGR of more than 7.3% between 2025 and 2034. In 2025, the industry revenue is estimated to reach USD 425.48 million.

• Base Year Value (2024): USD 398.91 million
• CAGR (2025-2034): 7.3%
• Forecast Year Value (2034): USD 807 million
• Historical Data Period: 2021-2034
• Largest Region: North America
• Forecast Period: 2025-2034

Market Dynamics:

Growth Drivers & Opportunities

The Compostable and Biodegradable Refuse Bags Market is experiencing significant expansion due to a growing awareness of environmental issues and increasing consumer demand for sustainable products. As communities and municipalities strive to implement zero-waste strategies, the adoption of compostable and biodegradable refuse bags is seen as a critical step in reducing landfill waste and promoting a circular economy. This shift is supported by initiatives and regulations aimed at minimizing plastic pollution, as various governments worldwide introduce bans on single-use plastics, creating a conducive environment for the growth of eco-friendly alternatives.

Another key driver for market growth is the rising emphasis on corporate social responsibility among businesses. An increasing number of companies are adopting sustainable practices and implementing green policies, prompting them to seek environmentally friendly products, including refuse bags. This trend not only enhances their brand reputation but also appeals to a growing segment of environmentally conscious consumers. Additionally, the increased availability of raw materials for producing compostable and biodegradable bags has sparked innovation in product development, leading to a broader variety of offerings that cater to diverse consumer needs.

Opportunities for growth in the market are further augmented by technological advancements in materials science. Innovative bioplastics derived from natural sources are becoming more accessible, making it easier for manufacturers to produce high-quality compostable bags that perform well in various applications. These advancements in material technology have led to products that not only degrade efficiently but also maintain similar functional characteristics to traditional plastic bags, thus attracting a wider audience. Furthermore, the rise of e-commerce and food delivery services presents new avenues for the use of compostable refuse bags, as companies seek to align their packaging with sustainability goals.

Report Scope

Report Coverage	Details
Segments Covered	Material, Capacity, Application
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	Mondi, Sphere Group, Vegware Global, VICTOR Güthoff & Partner, Cedo., BioBag International AS, PLAST-UP, Polybags, Clondalkin Group Holdings B.V., Plastiroll Oy, The Biodegradable Bag Company, QuickPack Haushalt + Hygiene, The Compost Bag Company, SIMPAC, TERDEX

Industry Restraints:

Despite the favorable conditions for growth, the Compostable and Biodegradable Refuse Bags Market faces several challenges that could hinder its expansion. One of the primary constraints is the perception and understanding of compostable and biodegradable products among consumers. Many individuals remain unaware of the correct disposal methods and specific conditions required for effective composting, which can lead to confusion and misuse of these products. This lack of consumer education may deter some potential users from switching from traditional plastic bags to sustainable alternatives.

Additionally, the higher production costs associated with compostable and biodegradable refuse bags compared to conventional plastic options pose another significant barrier. While prices for sustainable products are gradually decreasing, many consumers and businesses are still reluctant to pay a premium for eco-friendly options, particularly when cheaper alternatives are readily available. This economic factor, coupled with the fluctuating prices of raw materials used in bioplastics, can create uncertainty for manufacturers and inhibit their willingness to invest in sustainable product lines.

Lastly, the limited availability of industrial composting facilities is a critical restraint that affects the effective implementation of compostable refuse bags. Since not all regions have access to adequate composting infrastructure, the potential environmental benefits of these products may not be fully realized. If consumers lack the means to compost these bags properly, there is a risk that they may still end up in landfills, negating the positive impact of switching to biodegradable options. This systemic issue underscores the challenges that need to be addressed to unlock the full potential of the market.

Regional Forecast:

North America

The North American compostable and biodegradable refuse bags market is primarily driven by increasing environmental awareness and stringent regulations against plastic use. The United States represents the largest market in this region due to its high levels of consumption and growing initiatives by both government and private sectors to adopt sustainable practices. States like California and New York are at the forefront, implementing bans on single-use plastics, which fosters the demand for compostable alternatives. Canada is also witnessing a rise in eco-conscious consumer behavior, with provinces like British Columbia leading the way in sustainability initiatives. The market is expected to see significant growth in urban areas where environmental regulations are stricter and public support for sustainable products is strong.

Asia Pacific

In the Asia Pacific region, countries such as China and Japan are emerging as key players in the compostable and biodegradable refuse bags market. China, with its vast population and rapid urbanization, is increasingly focusing on waste management and reducing plastic pollution, leading to a surge in demand for compostable bags. Japan is known for its advanced waste management practices, and the cultural emphasis on sustainability will likely drive growth in the biodegradable refuse bags segment. South Korea is also making strides, with government policies promoting biodegradable materials in a bid to tackle environmental issues. The increasing purchasing power and environmental awareness among consumers in these countries are expected to propel market expansion significantly.

Europe

Europe showcases a robust and proactive stance toward sustainability, making it one of the most influential markets for compostable and biodegradable refuse bags. Countries like Germany and France are leading the way, with stringent legislation aimed at reducing plastic waste and promoting compostable products. The European Union has implemented directives to phase out single-use plastics, enhancing the demand for sustainable alternatives. The UK is also witnessing an increase in market size due to rising environmental consciousness among consumers and businesses alike. The growing trend of corporate social responsibility among brands in these countries is fueling the innovation and adoption of eco-friendly products, leading to a favorable market environment for compostable bags in the region.

Segmentation Analysis:

In terms of segmentation, the global Compostable & Biodegradable Refuse Bags market is analyzed on the basis of Material, Capacity, Application.

Material Segment

The Material segment of the Compostable & Biodegradable Refuse Bags Market comprises several categories, including bioplastics, starch blends, and other organic materials. Bioplastics, particularly those derived from polylactic acid (PLA) and polyhydroxyalkanoates (PHA), are gaining traction due to their durability and versatility. Starch blends, which utilize plant-derived starches, are also popular for their cost-effectiveness and compostability. Out of these, bioplastics are expected to exhibit the largest market size, driven by their increasing adoption in various applications, while starch blends are anticipated to grow rapidly as manufacturers seek more sustainable alternatives without compromising on performance.

Capacity Segment

In terms of capacity, the Compostable & Biodegradable Refuse Bags Market is categorized into various volume ranges, including small, medium, and large bags. The medium capacity segment is projected to capture a significant part of the market due to its suitability for household and commercial use, including office waste and kitchen scraps. Meanwhile, the small capacity segment is expected to witness the fastest growth, particularly among urban consumers who prioritize convenience and minimal waste in smaller packaging. This trend towards smaller, more manageable sizes highlights the evolving consumer preferences toward sustainable and easy-to-handle refuse management solutions.

Application Segment

The Application segment of the market includes household, commercial, industrial, and agricultural uses. The household application is poised to hold the largest market share, as an increasing number of households are adopting eco-friendly practices and looking for sustainable waste disposal options. The commercial application is anticipated to experience the highest growth rate, driven by a burgeoning demand from restaurants, cafes, and retailers that are adopting green policies in their operations. Industrial use, though it currently occupies a smaller portion of the market, is gradually gaining attention as sustainability initiatives expand to larger scale waste management and packaging sectors. The agricultural application, although less prominent at present, is likely to expand as biodegradable bags are increasingly utilized for composting and waste management in farming practices.

Competitive Landscape:

The competitive landscape of the Compostable & Biodegradable Refuse Bags Market is characterized by a mix of established players and emerging companies focused on sustainable packaging solutions. The market is driven by increasing environmental awareness and stringent regulations against plastic use, prompting companies to innovate and diversify their product offerings. Key players are investing in research and development to improve the biodegradability and functionality of their products while maintaining cost competitiveness. Collaboration and partnerships are common strategies used to expand market reach and enhance product development capabilities. The market is likely to witness significant growth, fueled by rising consumer demand for eco-friendly alternatives and initiatives from governments worldwide to promote sustainability.

Top Market Players

1. BioBag International AS

2. Green Force

3. BioSmart

4. Novamont S.p.A.

5. Eco-Products, Inc.

6. Natures Way

7. Plasticosgetti S.A.

8. GRAHAM PACKAGING COMPANY, L.P.

9. Vashti

10. Simply Green Solutions