Biodegradable Plastic Bags Market Size & Forecast [2033]

Biodegradable Plastic Bags Market Overview

The Biodegradable Plastic Bags Market size was valued at USD 868.43 million in 2024 and is expected to reach USD 1268.49 million by 2033, growing at a CAGR of 4.3% from 2025 to 2033.

The global biodegradable plastic bags market is experiencing significant growth, driven by increasing environmental concerns and regulatory measures. In 2024, the market was valued at approximately USD 4.5 billion, with projections indicating a substantial rise by 2033. This growth is attributed to the rising demand for sustainable alternatives to conventional plastic bags, which contribute significantly to environmental pollution. For instance, traditional plastics can take up to 500 years to decompose, whereas biodegradable options like PLA and PHA degrade within months under appropriate conditions.

The adoption of biodegradable bags is further propelled by government initiatives; for example, the European Union's ban on single-use plastics has significantly boosted the demand for eco-friendly alternatives. Moreover, consumer preferences are shifting towards sustainable products, with surveys indicating that approximately 70% of consumers prefer products packaged in biodegradable materials. This trend is evident in the retail sector, where major chains are replacing traditional plastic bags with biodegradable options. Additionally, technological advancements have led to the development of biodegradable bags with enhanced strength and durability, making them suitable for various applications, including food packaging and industrial use. These factors collectively contribute to the robust expansion of the biodegradable plastic bags market globally.

Key Findings

Driver: Increasing environmental awareness and stringent government regulations are propelling the demand for biodegradable plastic bags.

Top Country/Region: Europe leads the market, with countries like Germany and France accounting for over 35% of the regional demand.

Top Segment: Starch Blends dominate the market, holding a share of 42.7% in product types.

Biodegradable Plastic Bags Market Trends

The biodegradable plastic bags market is witnessing several notable trends that are shaping its growth trajectory. One significant trend is the increasing adoption of biodegradable bags in the retail sector. Major retailers are transitioning from conventional plastic bags to biodegradable alternatives to align with sustainability goals and meet consumer demand. For instance, the use of biodegradable bags in retail applications has surged, with the "Convenient for Shopping" segment holding a 27.0% share. Another trend is the advancement in biodegradable materials. Innovations in materials like Polylactic Acid (PLA) and Polyhydroxyalkanoate (PHA) have enhanced the performance of biodegradable bags, making them more durable and suitable for various applications. These materials decompose within months under industrial composting conditions, reducing environmental impact. The food packaging industry is also embracing biodegradable bags, driven by consumer preferences for sustainable packaging. Biodegradable bags are increasingly used for food packaging, contributing to the segment's growth.

Moreover, government regulations banning single-use plastics are compelling food manufacturers to adopt biodegradable alternatives. In the industrial sector, biodegradable bags are gaining traction for waste management and packaging applications. The "Garbage Containing" segment is expanding as municipalities and industries seek eco-friendly waste disposal solutions. Biodegradable garbage bags offer a sustainable alternative to traditional plastic bags, aligning with environmental regulations. Regionally, Asia-Pacific is emerging as a significant market for biodegradable plastic bags. Countries like China and India are implementing policies to reduce plastic waste, boosting the adoption of biodegradable alternatives. China produced over 120,000 metric tons of biodegradable plastics in 2023, reflecting the region's commitment to sustainability.

Biodegradable Plastic Bags Market Dynamics

DRIVER

Increasing Environmental Awareness and Government Regulations

The surge in environmental consciousness among consumers and the implementation of stringent government regulations are primary drivers of the biodegradable plastic bags market. Traditional plastic bags contribute significantly to environmental pollution, taking up to 500 years to decompose. In contrast, biodegradable bags made from materials like PLA and PHA degrade within months under appropriate conditions. Governments worldwide are enacting policies to reduce plastic waste; for example, the European Union's ban on single-use plastics has significantly boosted the demand for biodegradable alternatives. Additionally, consumer preferences are shifting towards sustainable products, with surveys indicating that approximately 70% of consumers prefer products packaged in biodegradable materials. These factors collectively drive the adoption of biodegradable plastic bags.

RESTRAINT

High Production Costs and Limited Infrastructure

Despite the growing demand, the biodegradable plastic bags market faces challenges related to high production costs and limited infrastructure. The production of biodegradable materials like PLA and PHA is more expensive compared to conventional plastics, impacting the pricing of end products. Additionally, the lack of adequate composting facilities hampers the effective decomposition of biodegradable bags. In many regions, the infrastructure required for industrial composting is insufficient, leading to biodegradable bags ending up in landfills where they may not decompose as intended. These factors restrain the widespread adoption of biodegradable plastic bags.

OPPORTUNITY

Technological Advancements and Innovation

Technological advancements present significant opportunities for the biodegradable plastic bags market. Innovations in material science are leading to the development of biodegradable bags with enhanced strength, durability, and cost-effectiveness. For instance, researchers have developed PBAT-based biodegradable packaging that decomposes within three months without leaving toxic residues. Such advancements make biodegradable bags more competitive with traditional plastics, encouraging their adoption across various sectors. Moreover, government incentives and funding for sustainable technologies further support innovation in biodegradable materials, opening new avenues for market growth.

CHALLENGE

Consumer Misconceptions and Labeling Issues

Consumer misconceptions and labeling issues pose challenges to the biodegradable plastic bags market. Many consumers are unaware of the proper disposal methods for biodegradable bags, leading to improper waste management. Additionally, misleading labeling can result in non-compostable bags being disposed of as biodegradable, contaminating composting systems. For example, in Australia, poor labeling has led to significant plastic contamination in garden waste. Addressing these challenges requires standardized labeling practices and consumer education to ensure the effective use and disposal of biodegradable plastic bags.

Biodegradable Plastic Bags Market Segmentation

The biodegradable plastic bags market is segmented based on type and application.

By Type

Polylactic Acid (PLA): is derived from renewable resources like corn starch and is widely used due to its biodegradability and compostability. It decomposes within months under industrial composting conditions, making it suitable for various applications, including food packaging.
Polyhydroxyalkanoate (PHA): is produced by microbial fermentation and is fully biodegradable in marine environments. Its high biodegradability makes it ideal for applications where environmental exposure is likely.
Starch Blends: biodegradable plastics, often blended with other materials, hold a significant market share of 42.7%. They are cost-effective and suitable for applications like shopping bags and garbage liners.
Others: This category includes materials like PBAT and PBS, which offer flexibility and durability, expanding the range of applications for biodegradable bags.

By Application

Food Packaging: Biodegradable bags are increasingly used in food packaging to meet consumer demand for sustainable options. Their ability to maintain food freshness while being environmentally friendly drives their adoption.
Convenient for Shopping: This segment holds a 27.0% share, reflecting the growing use of biodegradable bags in retail shopping. Consumers prefer eco-friendly bags for their shopping needs, influencing retailers to adopt biodegradable options.
Garbage Containing: Biodegradable garbage bags are gaining popularity for waste management, offering an eco-friendly alternative to traditional plastic liners. Their use aligns with municipal waste reduction goals.
Industrial Packaging: Industries are adopting biodegradable bags for packaging to comply with environmental regulations and corporate sustainability goals. These bags are used for packaging various industrial products, reducing plastic waste.
Others: This includes applications in agriculture, healthcare, and other sectors where biodegradable bags are used for specific purposes, contributing to the overall market growth.

Biodegradable Plastic Bags Market Regional Outlook

The biodegradable plastic bags market exhibits varying dynamics across different regions.

North America

the market is driven by stringent environmental regulations and high consumer awareness. The United States has implemented bans on single-use plastics in several states, encouraging the adoption of biodegradable alternatives. Additionally, consumer preference for sustainable products is influencing retailers to offer biodegradable bags.

Europe

leads the global biodegradable plastic bags market in terms of regulation and usage. The enforcement of EU Single-Use Plastics Directive across 27 member countries has resulted in over 65% reduction in polyethylene bag usage in major cities. In 2023, Europe produced approximately 400,000 metric tons of biodegradable bags, with Italy, France, and Germany accounting for over 70% of this output. Germany alone recorded more than 2,000 certified composting sites by 2024, enabling large-scale municipal integration.

Asia-Pacific

region is experiencing rapid growth due to rising urbanization and increasing plastic pollution regulations. In 2023, China’s biodegradable plastic bag production surpassed 350,000 metric tons, largely driven by national mandates that restrict single-use plastics in over 300 cities. India introduced biodegradable bag regulations in 20+ states, resulting in widespread adoption in municipal waste collection and food delivery sectors.

Middle East & Africa

market is still developing, it is showing promise. In 2023, the UAE and Saudi Arabia initiated bans on conventional plastic bags in retail outlets, creating demand for biodegradable alternatives.

List of Top Biodegradable Plastic Bags Companies

BioBag
Novolex
EnviGreen
Plastiroll
Sahachit
Xtex Polythene
RKW Group
Abbey Polythene
Sarah Bio Plast
Bulldog Bag
Symphony Polymers
Jiangsu Torise biomaterials
JUNER Plastic packaging
Sahachit Watana Plastic Industry

BioBag: holds one of the highest market shares in the biodegradable plastic bags sector. The company operates in over 25 countries and reported selling more than 15,000 metric tons of compostable bags in 2023. Its core products are certified compostable according to EN 13432 and ASTM D6400 standards, making it a preferred brand across retail and food waste collection segments.

Novolex: through its Eco-Products and Bagcraft brands, dominates the North American market. In 2023, it produced more than 18,000 metric tons of biodegradable plastic bags, catering to foodservice, grocery, and industrial clients. The company has integrated renewable energy into over 70% of its manufacturing processes and has expanded its biodegradable product line to meet rising regulatory pressures.

Investment Analysis and Opportunities

The biodegradable plastic bags market is attracting significant investment from both public and private sectors due to intensifying environmental regulations, rising consumer awareness, and international efforts to reduce plastic waste. In 2023, over USD 2.3 billion was invested globally in biodegradable and compostable material production infrastructure. This includes funding from governments, venture capital firms, and industry stakeholders. In Europe, governments are channeling funds into bio-economy initiatives that promote alternatives to petroleum-based plastics. The European Investment Bank allocated more than EUR 400 million in 2023 to support R&D and manufacturing expansion for biodegradable polymers. Italy and Germany have emerged as funding hubs, focusing particularly on starch blend and PLA-based bag production. In the U.S., federal and state grants worth over USD 150 million were awarded to manufacturers in 2023 for building or upgrading compostable bag facilities, especially in California, Oregon, and New York. Moreover, the Biden administration’s push for sustainable infrastructure has opened up federal incentives for bio-based material innovators.

Asia-Pacific presents long-term investment potential due to high-volume production capacity and large-scale consumption. In China, more than 50 new production lines for biodegradable plastic bags were commissioned in 2023 alone, supported by municipal-level funding. India saw over INR 1,200 crore (approx. USD 145 million) in private equity investments for expanding compostable polymer manufacturing units, especially in Gujarat and Maharashtra. Private sector interest is equally robust. Major chemical firms are forming strategic alliances and acquiring startups with innovative biodegradable formulations. In 2024, a leading polymer company announced a USD 600 million acquisition of a bioplastics startup focusing on algae-based bags. Similarly, venture capital is targeting early-stage companies developing home-compostable bags and water-soluble formulations. Globally, the demand from sectors like retail, food delivery, and agriculture is driving new investment models. Retail chains are increasingly signing long-term supply contracts with bag manufacturers, assuring production scalability and stable income streams for investors. Also, rising landfill fees and penalties for non-compliance are shifting waste management companies towards biodegradable options, creating recurring market demand and strong ROI potential for investors. Overall, the biodegradable plastic bags market presents a rich landscape for green investments, supply chain expansion, and global partnerships aligned with environmental policy frameworks.

New Product Development

The biodegradable plastic bags market has seen a surge in new product development initiatives driven by global regulatory mandates, technological innovation, and rising consumer demand for sustainable alternatives. Between 2023 and 2024, over 350 new biodegradable bag variants were introduced globally, incorporating improved tensile strength, faster decomposition rates, and compatibility with commercial and home composting environments. In 2023, Novolex introduced a new line of PLA-based grocery and retail bags under its Eco-Products division. These bags are certified for ASTM D6400 and BPI compostability and feature up to 40% enhanced tear resistance, addressing retailer concerns over durability. Additionally, the company embedded QR-code-based disposal instructions to improve post-consumer waste management compliance. BioBag launched a line of marine biodegradable bags targeted at coastal cities and fisheries in 2024. These bags disintegrate within 26 weeks in marine environments and are made from proprietary starch-polymer blends. Field testing in Scandinavian waters confirmed 90% breakdown under low-oxygen aquatic conditions, meeting OECD 306 test standards. Plastiroll, based in Finland, expanded its Greenline® product range with custom-printed compostable packaging bags for the foodservice industry. These bags use renewable agricultural by-products and are heat-sealable, supporting food hygiene compliance. In 2023 alone, the company fulfilled over 22 million units of these bags for European distributors. EnviGreen released an innovative biodegradable bag series in India made entirely from vegetable derivatives such as corn, potato, and tapioca starches.

These bags can degrade within 180 days in soil without requiring industrial composting. In field trials conducted across Bengaluru and Hyderabad, over 75% of users reported successful backyard composting results. Jiangsu Torise Biomaterials debuted a multilayer biodegradable packaging film in 2024, designed specifically for e-commerce logistics. This three-layer film system is made of PLA, PHA, and cellulose acetate, delivering moisture resistance and mechanical flexibility. With 6-month degradability under industrial composting conditions, this development targets packaging needs in fast-growing digital retail markets. Another notable development is the emergence of home-compostable zip-lock biodegradable bags designed for food preservation. Sarah Bio Plast launched such products in late 2023, engineered using bio-based polyesters and natural fibers. These products maintain airtight sealing and shelf-life performance equal to traditional plastic zip bags while decomposing completely within 12 weeks in home compost bins. R&D efforts are also focusing on enhancing UV and heat resistance to meet storage challenges in tropical regions. In 2024, RKW Group introduced biodegradable mulch bags tailored for the agricultural sector in southern Europe and North Africa, with added UV inhibitors and thermal barriers. Field testing across Spanish farms demonstrated stable performance under 40°C conditions and successful soil integration post-harvest.

Five Recent Developments

Novolex Launched Compostable Shopping Bags Across 12 States in the U.S. (2023): expanded its range of compostable shopping bags to major retail chains across 12 U.S. states, including California, Oregon, and Washington. These bags meet ASTM D6400 standards and are made using PLA and PBAT blends. The company reported distributing over 10 million bags in the first six months post-launch.
BioBag Partnered with Scandinavian Municipalities for Food Waste Collection (2024): entered a regional partnership with over 150 municipalities in Sweden and Norway to supply biodegradable bags for household food waste collection. The initiative aims to replace conventional polyethylene liners in bins with certified EN 13432 compostable bags, targeting the collection of 120,000 metric tons of organic waste annually.
Jiangsu Torise Biomaterials Increased Production Capacity by 40% (2023): expanded its biodegradable plastic bag production facility in Jiangsu Province, China, increasing its annual output by 40% to exceed 30,000 metric tons in late 2023. The upgrade included new lines capable of producing multilayer biodegradable films using PHA and PLA-based compounds.
RKW Group Rolled Out Agricultural Compostable Films in Southern Europe (2024): introduced a new line of compostable agricultural films and bags across Spain, Portugal, and Italy. These products are designed for soil integration post-harvest and are composed of biodegradable aliphatic-aromatic copolyesters. The group reported successful degradation within 90 days under field conditions in 65% of test locations.
EnviGreen Launched Biodegradable Garbage Bags in 100+ Indian Cities (2023): expanded its biodegradable garbage bag distribution network to over 100 urban centers in India in mid-2023. The bags, made entirely from plant-based starches, were tested and verified to degrade in within 180 days in municipal compost facilities. The expansion included partnerships with over 400 waste management contractors across major metro cities.

Report Coverage of Biodegradable Plastic Bags Market

The biodegradable plastic bags market report offers a detailed and structured analysis of the global industry landscape, encompassing technological advancements, regulatory frameworks, production capabilities, end-user adoption trends, and competitive dynamics. Covering a timeline from 2020 to 2024, the report focuses on data-driven insights derived from industrial output, import-export trends, and manufacturing footprints across key regions including North America, Europe, Asia-Pacific, and the Middle East & Africa. The report segments the market comprehensively by type, including Polylactic Acid (PLA), Polyhydroxyalkanoate (PHA), Starch Blends, and other biodegradable polymers, along with detailed volume analysis. For example, PLA-based bags accounted for over 35% of total biodegradable bag production globally in 2023, with over 500,000 metric tons manufactured across 70+ facilities worldwide. In the application category, the report covers food packaging, garbage containing, shopping convenience, industrial packaging, and other specialty uses. Food packaging emerged as the leading application, consuming approximately 42% of total biodegradable bags produced in 2023, driven by demand from major supermarket chains and fast-food outlets. A key area of coverage includes the regulatory environment. As of 2024, over 60 countries have implemented partial or full bans on single-use plastic bags, resulting in widespread adoption of biodegradable alternatives. The report details how European Union directives such as Directive (EU) 2019/904 have influenced product development and compliance in the region.

The report also highlights technological innovation, noting that over 120 patents related to biodegradable polymers and additives were filed globally between 2022 and 2024. These included innovations in thermal resistance, microbial activation for enhanced composting, and multilayer composite film technology. Competitive landscape analysis includes company profiling, production statistics, and expansion strategies. For example, BioBag and Novolex are profiled for having the most geographically diversified operations, with presence in over 30 countries and distribution partnerships with over 500 retail chains. Additionally, newer players like EnviGreen and Jiangsu Torise are noted for rapid capacity expansion and localized pricing models. Another section provides data on investment trends, showing that global investment in biodegradable plastic bag manufacturing reached over 1 million metric tons of new annual capacity added between 2021 and 2024. This expansion is concentrated in countries like China, Germany, and India, where subsidies, tax incentives, and zero-duty imports on biodegradable raw materials have supported industry growth. Lastly, the report provides insights into distribution and retail adoption, identifying that biodegradable plastic bags are now offered in over 70% of large supermarket chains in Europe and North America, and are becoming mainstream across Asia-Pacific due to cost parity with traditional plastic bags achieved through scale production and local sourcing of bio-based inputs.