The humble bin liner is one of the few plastic items designed from the start to be thrown away, which makes it an obvious target for change. A compostable caddy liner can go into the food-waste stream together with the peelings it holds, instead of being picked out as contamination. According to Strategic Packaging Insights, the compostable and biodegradable refuse bags market was valued at USD 3.773 billion in 2025 and is projected to reach USD 11.82 billion by 2035, growing at a CAGR of 12.09% over 2026-2035.
https://www.strategicpackaginginsights.com/report/compostable-biodegradable-refuse-bags-market
Plastic Waste Rules Push Households to Switch
The report links the market’s double-digit growth to rising environmental awareness and stricter regulations on plastic waste management. Consumers increasingly want everyday products that do not leave a long-lasting plastic footprint, and refuse bags are an easy, low-cost place to make that switch. Advances in biodegradable materials are also narrowing the performance gap with conventional polyethylene bags, especially on strength and leak resistance.
The same pressure is reshaping other single-use bags. Our analysis of the reusable shopping bag market shows how single-use plastic restrictions are changing carrier bag habits at the checkout.
Compostable Is Not the Same as Biodegradable
The two terms are often used together but mean different things. “Biodegradable” only says that microorganisms can eventually break a material down, without fixing how quickly or under what conditions. “Compostable” is a stricter claim, usually backed by a standard that sets conditions for breakdown in a composting process. The report names EN 13432 as the most recognised compostability certification in this market. For municipalities that collect food waste separately, certified compostable liners make collection cleaner and easier for households.
PLA, Drawstrings and Kitchen Waste
Polylactic acid (PLA) is the largest material segment, widely used because it is both biodegradable and compostable. Drawstring bags are the most popular product type, as they are convenient to tie and carry. By application, household waste is the largest segment, while organic waste is the fastest-growing, reflecting the spread of separate food-waste collection. The residential sector is the largest end-use, and retail is the main distribution channel.
Europe Leads, Asia Pacific Accelerates
Europe is the largest regional market, supported by strong composting infrastructure and long-standing policy action against plastic waste. Asia Pacific is expected to be the fastest-growing region, driven by increasing urbanisation and government initiatives to reduce plastic waste. The report page does not publish separate regional values.
Cost and Clarity Are the Sticking Points
Growth is strong, but the report flags clear challenges. Raw material costs for bio-based polymers can be volatile. Regulatory uncertainty, including how terms like “biodegradable” may be used on labels, makes long-term planning harder. And conventional plastic bags remain cheap and familiar, so compostable options must keep proving their value on price and performance.
Resin Makers and Bag Brands
The competitive landscape combines bioplastic material suppliers and bag producers. Key companies include Novolex, BioBag International AS, BASF SE, Mondi, Sphere Group, Vegware Global, Cedo Ltd., Berry Global Inc., TIPA Corp Ltd. and Novamont S.p.A.
Outlook: From Niche Liner to Everyday Staple
With the market expected to more than triple to USD 11.82 billion by 2035, compostable and biodegradable refuse bags are moving from eco-shop niche to mainstream household product. Growth will be strongest where food-waste collection is expanding and where certification gives consumers and councils confidence in what the bag will do after it leaves the kitchen.
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The role of packaging is changing. It is no longer just a wrapper, but a vital instrument of communication, compliance, and environmental stewardship. At Strategic Packaging Insights, we are dedicated to helping organizations navigate this shift with confidence.
We bridge the gap between raw market data and strategic wisdom. By bringing together a diverse coalition of material scientists, designers, and market experts, we offer a panoramic view of the packaging value chain.
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