Biodegradable Plastic Bags and Sacks Sales Market Outlook

The global biodegradable plastic bags and sacks market is projected to reach USD 12.4 billion by the end of 2035, growing at a compound annual growth rate (CAGR) of 10.5% from 2025 to 2035. This substantial growth is driven by increasing environmental concerns, rising government initiatives promoting sustainable packaging, and the growing consumer demand for eco-friendly products. The shift towards reducing plastic waste and pollution is prompting businesses across various industries to adopt biodegradable alternatives, thereby pushing the market for biodegradable bags and sacks. Moreover, innovations in biodegradable materials and advancements in production processes are expected to further fuel market expansion. With increasing awareness regarding the detrimental effects of conventional plastic on the environment, the adoption of biodegradable plastic bags and sacks is anticipated to gain traction among consumers and businesses alike.

Growth Factor of the Market

One of the primary growth factors for the biodegradable plastic bags and sacks market is the escalating awareness regarding environmental sustainability. Consumers today are more informed and concerned about the impact of plastic waste on the ecosystem, leading to a growing preference for biodegradable options. Additionally, legislative measures such as bans on single-use plastics in several regions are driving businesses to seek alternatives, thus accelerating the demand for biodegradable bags. The rise of e-commerce has also contributed significantly, as it necessitates the use of sustainable packaging solutions for shipping and delivery purposes. Furthermore, advancements in biodegradable materials, such as polylactic acid (PLA) and starch blends, are enhancing the performance and appeal of these products, making them viable alternatives to traditional plastic bags. Lastly, the commitment of major retailers to sustainability goals is further propelling market growth, as they increasingly opt for biodegradable options to align with consumer values and corporate responsibility initiatives.

Key Highlights of the Market

• The biodegradable plastic bags and sacks market is expected to experience a robust CAGR of 10.5% from 2025 to 2035.
• North America and Europe are anticipated to dominate the market due to stringent regulations against single-use plastics.
• Grocery bags are projected to hold the largest share of the market due to their widespread usage in retail settings.
• PLA-based biodegradable bags are gaining traction owing to their compostability and minimal environmental impact.
• Growing consumer preference for eco-friendly products is driving innovations in biodegradable materials and applications.

By Product Type

Grocery Bags:

Grocery bags constitute a significant segment of the biodegradable plastic bags and sacks market. They are primarily utilized in retail environments for carrying purchased items, and their demand is propelled by increasing consumer awareness regarding environmental impact. As retailers shift towards sustainable practices, grocery bags made from biodegradable materials are becoming increasingly popular. These bags not only serve the functional purpose of carrying groceries but also cater to consumersÔÇÖ eco-conscious preferences. Many retailers are now offering incentives to customers who utilize these alternatives, thus driving the adoption of biodegradable grocery bags across markets worldwide. The trend is expected to continue as more consumers demand sustainable solutions, thereby solidifying the grocery bag segment's importance within the biodegradable market landscape.

Trash Bags:

Trash bags represent another critical product type within the biodegradable plastic bags and sacks market. Designed for waste disposal, biodegradable trash bags provide an eco-friendly alternative to traditional plastic bags. As municipalities and waste management entities increasingly adopt sustainability initiatives, the demand for biodegradable trash bags has seen a notable rise. These bags decompose naturally in landfill conditions, thus mitigating environmental pollution associated with conventional plastic trash bags. Additionally, the expansion of waste segregation practices in households and businesses has further fueled the need for biodegradable options. The trash bag segment is expected to witness sustained growth, driven by strict regulations on plastic waste and the growing emphasis on responsible waste management solutions.

Food Storage Bags:

Food storage bags are gaining traction in the biodegradable plastic bags and sacks market, as consumers seek alternatives that align with their environmental values. These bags are designed for storing perishable goods and maintaining freshness without contributing to plastic pollution. The increasing trend of meal prep and the demand for sustainable packaging options in the food industry are key drivers for this segmentÔÇÖs growth. Biodegradable food storage bags are often made from materials such as PLA or starch blends, which offer an effective barrier against moisture and air. As consumers become more conscious of their food packaging choices, the food storage bag segment is expected to expand, supported by innovations in material technology and growing retail offerings.

Compostable Bags:

Compostable bags are a unique and highly sought-after segment within the biodegradable plastic bags and sacks market. They are specifically engineered to break down into non-toxic components under composting conditions, thus contributing positively to soil health. The rising awareness regarding composting and organic waste management has increased the adoption of compostable bags in both residential and commercial settings. These bags are particularly popular among environmentally-conscious consumers and businesses that participate in green initiatives. As more municipalities implement organic waste collection programs, the demand for compostable bags is anticipated to grow, further emphasizing their potential in promoting sustainable waste management practices.

Others:

The 'Others' category in the product type segment includes various biodegradable bags and sacks that do not fall under the primary classifications. This may encompass specialty bags designed for specific applications, such as pet waste bags or retail merchandise bags. Although this segment may not hold the highest market share, it is significant as it reflects the versatility and broad application of biodegradable materials across different industries. As innovations continue to emerge, the 'Others' segment is likely to see growth driven by niche markets that prioritize sustainability in their operations and product offerings, further enhancing the overall appeal of biodegradable solutions.

By Application

Retail:

The retail sector is one of the largest applications for biodegradable plastic bags and sacks, primarily driven by the increasing shift towards sustainable practices among retailers. Retailers are facing pressure from consumers and regulatory bodies to reduce plastic waste, leading to a growing preference for biodegradable alternatives. Major retail chains are adopting biodegradable bags as part of their commitment to sustainability, helping to reduce their environmental footprint. Additionally, the shift towards e-commerce requires sustainable packaging solutions for shipping and delivery purposes, further enhancing the demand for biodegradable bags. The retail application segment is expected to maintain robust growth as more retailers recognize the importance of aligning their operations with eco-friendly practices.

Industrial:

The industrial application of biodegradable plastic bags and sacks is gaining momentum as companies strive to improve their sustainability credentials. Industries such as manufacturing, logistics, and warehousing are increasingly utilizing biodegradable bags for packaging, waste disposal, and product shipping. The push towards reducing plastic waste in industrial operations is driven by both regulatory requirements and corporate sustainability goals. As businesses seek to enhance their environmental image, biodegradable bags are becoming a preferred choice for industrial applications. The growth of this segment is anticipated to continue, supported by innovations in biodegradable materials that meet the specific needs of industrial packaging and waste management.

Household:

Household applications encompass a wide range of biodegradable plastic bags and sacks used for everyday tasks, such as grocery shopping, waste disposal, and food storage. The growing trend of eco-conscious living is prompting consumers to opt for biodegradable alternatives in their homes. The increasing availability of biodegradable products in retail stores, along with consumer education regarding environmental impact, is driving the household segment's growth. Families are increasingly looking to reduce their plastic usage, leading to a rise in the adoption of biodegradable household bags. As the emphasis on sustainable living continues to grow, this application segment is expected to expand significantly, reflecting changing consumer preferences.

Agriculture:

The agricultural sector is emerging as a significant application for biodegradable plastic bags and sacks. These bags are utilized for various purposes, including seedling bags, mulch films, and crop protection solutions. The adoption of biodegradable materials in agriculture is driven by the growing need to minimize plastic waste in farming practices. Biodegradable bags can provide nutrients to the soil as they decompose, thus offering ecological benefits alongside practical applications. Moreover, the increasing awareness of sustainable farming practices is propelling the demand for biodegradable solutions in agriculture. As the industry seeks to balance productivity with environmental responsibility, the agricultural application is expected to see sustained growth in the biodegradable bag market.

Others:

The 'Others' category in the application segment includes various niche applications for biodegradable bags and sacks that do not fit into the primary classifications. This may encompass uses in sectors such as healthcare for waste disposal or specialty applications like composting. Although this segment may constitute a smaller share of the market, its significance lies in its representation of the diverse applications of biodegradable materials across different industries. As awareness grows regarding the benefits of biodegradable solutions, the 'Others' segment is likely to expand as more businesses and consumers seek eco-friendly packaging options tailored to their specific needs.

By Distribution Channel

Online Stores:

Online stores have become a crucial distribution channel for biodegradable plastic bags and sacks, reflecting the overall growth of e-commerce. With the convenience of shopping from home and an increasing trend toward sustainable products, consumers are turning to online platforms to purchase biodegradable options. E-commerce retailers often provide extensive information about product sustainability, helping consumers make informed choices. Furthermore, the ability to compare different brands and products online encourages consumers to explore and adopt biodegradable solutions. As more consumers embrace online shopping, the online stores segment is expected to witness substantial growth, promoting the accessibility of biodegradable bags to a wider audience.

Supermarkets/Hypermarkets:

Supermarkets and hypermarkets serve as significant distribution channels for biodegradable plastic bags and sacks, given their extensive reach and variety of product offerings. Many large retail chains are committing to sustainability by incorporating biodegradable options into their product lines. Consumers often prefer to shop for groceries in these large retail settings, where they can easily access biodegradable bags for their shopping needs. Promotional campaigns and in-store displays highlighting the benefits of biodegradable bags further encourage consumer adoption. As supermarkets and hypermarkets continue to align their product offerings with consumer preferences for sustainability, this distribution channel is projected to grow steadily in the biodegradable bags market.

Convenience Stores:

Convenience stores play a vital role in the distribution of biodegradable plastic bags and sacks, primarily due to their accessibility and quick service nature. These stores typically cater to consumers seeking convenience and speed, making them ideal locations for offering biodegradable alternatives. As consumer awareness of environmental issues increases, convenience stores are beginning to incorporate biodegradable bags into their offerings, thereby meeting the growing demand for sustainable solutions. Moreover, the impulse purchasing behavior typical of convenience store shoppers can drive the adoption of biodegradable options. As the trend toward eco-friendly products continues to gain momentum, convenience stores are expected to remain a key distribution channel in the biodegradable bags market.

Specialty Stores:

Specialty stores that focus on eco-friendly products are increasingly becoming important distribution channels for biodegradable plastic bags and sacks. These stores cater to a niche market of consumers who prioritize sustainability and are willing to pay a premium for environmentally friendly options. The curated selection of biodegradable bags available in specialty stores often includes innovative and high-quality products that appeal to eco-conscious customers. Additionally, specialty store staff can provide valuable information and guidance on the benefits of biodegradable materials, further encouraging consumer adoption. As more consumers seek out eco-friendly alternatives, specialty stores are likely to continue playing a vital role in the distribution of biodegradable plastic bags and sacks.

Others:

The 'Others' category in the distribution channel segment encompasses diverse avenues through which biodegradable bags and sacks are sold, such as direct sales, farmers' markets, or community initiatives. This segment reflects the increasing grassroots movement toward sustainability, where local producers and vendors offer biodegradable solutions to consumers. Although this segment may not dominate the market, it holds significance in fostering community engagement and awareness around eco-friendly practices. As consumers become more inclined to support local businesses and seek out sustainable products, the 'Others' distribution channel is expected to witness growth, contributing to the overall expansion of the biodegradable bags market.

By Material Type

PLA:

Polylactic Acid (PLA) is a prominent material type used in the production of biodegradable plastic bags and sacks. Derived from renewable resources such as corn starch or sugarcane, PLA is known for its compostability and minimal environmental impact. The growing demand for sustainable packaging solutions has positioned PLA as a preferred material among manufacturers and consumers alike. PLA bags are effective in providing a barrier against moisture and are suitable for a range of applications, from grocery bags to food storage. Furthermore, advancements in PLA technology continue to enhance its performance, making it an attractive option in the biodegradable bags market. As the consumer shift towards eco-friendly products grows, PLA is expected to maintain a significant share of the biodegradable materials segment.

Starch Blends:

Starch blends are another key material type in the biodegradable plastic bags and sacks market, formed by combining starch with other biodegradable polymers. This composite material offers versatility in properties and applications while maintaining the ecological benefits of being biodegradable. Starch blends can be tailored for various purposes, making them suitable for applications ranging from trash bags to food storage. The inherent renewability of starch, coupled with its cost-effectiveness, positions starch blends as an attractive alternative for manufacturers. The increasing focus on sustainability in packaging is driving the demand for starch-based solutions, thereby enhancing the growth prospects for this material type within the biodegradable bags market.

PBAT:

Polybutylene Adipate Terephthalate (PBAT) is a noteworthy material type utilized in the production of biodegradable plastic bags and sacks. It is a biodegradable copolyester that exhibits flexibility and versatility, making it suitable for various applications, including trash bags and agricultural films. PBAT's unique properties allow it to blend effectively with other biodegradable materials, enhancing the overall performance of the final product. As the demand for biodegradable solutions continues to rise, PBAT is gaining traction due to its ability to decompose in both industrial and home composting conditions. The increasing innovation in PBAT formulations is expected to further drive its adoption in the biodegradable bags market.

PBS:

Polybutylene Succinate (PBS) is an emerging material type in the biodegradable plastic bags and sacks market, recognized for its excellent biodegradability and mechanical properties. PBS offers good tensile strength and elasticity, making it suitable for applications where durability is essential, such as grocery bags and packaging films. Additionally, PBS can be blended with other biodegradable materials to enhance performance attributes, thereby expanding its range of applications. As environmental regulations become more stringent, the adoption of PBS-based biodegradable bags is likely to grow, supported by ongoing research and development efforts aimed at improving its properties and processing capabilities.

Others:

The 'Others' category in the material type segment includes a variety of alternative biodegradable materials that do not fit into the primary classifications. This may encompass innovative formulations or combinations of biodegradable polymers designed for specific applications. While this segment may represent a smaller market share, it reflects the dynamic nature of the biodegradable plastic industry, where ongoing research and innovation continue to yield new materials and technologies. As consumer preferences evolve and regulatory pressures mount, the 'Others' segment is expected to see growth, contributing to the overall diversification of biodegradable solutions in the market.

By Region

North America is projected to be a leading region in the biodegradable plastic bags and sacks market, driven by stringent regulatory measures aimed at reducing plastic waste and promoting sustainable alternatives. The region's commitment to environmental sustainability is supported by numerous initiatives at both federal and state levels, encouraging businesses and consumers to adopt biodegradable solutions. Additionally, the growing awareness among consumers regarding the environmental impacts of traditional plastic is boosting demand for biodegradable products. The North American market is anticipated to witness a CAGR of 11% from 2025 to 2035, highlighting the robust growth potential in this region. The presence of major retailers and e-commerce platforms further contributes to the growth of the biodegradable bags segment, as they increasingly offer sustainable packaging options.

Europe is expected to follow closely in the rankings, with significant contributions to the biodegradable plastic bags and sacks market. The European Union's comprehensive regulations on plastic waste management and its proactive approach toward sustainability have fostered a favorable environment for biodegradable products. Countries such as Germany, France, and the UK are at the forefront of adopting biodegradable solutions, driven by consumer demand for environmentally-friendly alternatives. The European market is characterized by strong research and development activities focused on biodegradable materials, which are enhancing the quality and performance of biodegradable bags. As a result, the European biodegradable bags market is poised for steady growth, reflecting the region's commitment to sustainability and environmental stewardship.

Opportunities

The biodegradable plastic bags and sacks market presents numerous opportunities for growth, particularly as consumer preferences continue to shift towards sustainability. Companies that invest in research and development to innovate biodegradable materials and improve their properties are likely to gain a competitive edge. Additionally, partnerships with retailers and e-commerce platforms can facilitate broader distribution and accessibility of biodegradable products, tapping into the increasing demand from eco-conscious consumers. As awareness regarding environmental issues grows, businesses have the chance to capitalize on the rising trend of sustainability by integrating biodegradable options into their product offerings. Furthermore, expanding into emerging markets where awareness of plastic pollution is growing can also lead to significant opportunities for market players.

Moreover, the development of new applications for biodegradable bags and sacks across various sectors can create additional opportunities. For example, exploring agricultural applications can lead to increased adoption of biodegradable solutions in farming practices, which is gaining momentum as sustainability becomes a crucial factor in agriculture. Similarly, enhancing the functionality of biodegradable bags for specialized uses, such as medical or industrial applications, can open new market avenues. As consumers and businesses strive for responsible consumption and production, the biodegradable plastic bags and sacks market is well-positioned to leverage these opportunities, fostering innovation and growth in the foreseeable future.

Threats

Despite the significant growth potential in the biodegradable plastic bags and sacks market, several threats could hinder progress. One of the primary concerns is the competition from traditional plastic products, which are often more cost-effective and widely available. Many consumers and businesses may prioritize price over sustainability, leading to challenges in convincing them to switch to biodegradable alternatives. Furthermore, limited awareness and understanding of biodegradable materials among certain consumer segments can pose obstacles to market penetration. The perception that biodegradable bags may not offer the same performance or durability as traditional plastics can deter potential customers. Additionally, fluctuations in the prices of raw materials used in biodegradable production can impact profitability and market competitiveness.

Moreover, regulatory challenges may also arise as governments continue to evolve policies regarding biodegradable materials. Inconsistent regulations across different regions can create uncertainty for manufacturers and retailers, making it difficult to navigate market entry or expansion. Additionally, issues related to the proper disposal and composting of biodegradable products can further complicate the market landscape. If consumers are unsure of how to dispose of biodegradable bags correctly, it could lead to contamination and limit their environmental benefits. Addressing these threats will require concerted efforts from industry stakeholders to educate consumers, improve product performance, and advocate for supportive regulatory frameworks.

Competitor Outlook

• BASF SE
• Novamont S.p.A.
• Sealed Air Corporation
• BioBag International AS
• Earthpack
• Cardia Bioplastics Limited
• PackTech Private Limited
• Green Dot Bioplastics
• Smurfit Kappa Group plc
• Trex Company, Inc.
• Plastipak Holdings, Inc.
• Miracle Plastics
• BioBag World America, Inc.
• Enviro-Tec
• NatureWorks LLC

The competitive landscape of the biodegradable plastic bags and sacks market is characterized by a mix of established players and emerging companies focused on sustainability. Companies like BASF SE and Novamont S.p.A. are recognized leaders in the development and production of biodegradable materials, leveraging their technological expertise and extensive distribution networks to capture market share. Additionally, innovative companies like Green Dot Bioplastics and BioBag International AS are gaining traction through their commitment to research and development, offering unique biodegradable solutions that cater to diverse consumer needs. The competition is intensifying as more players enter the market, driven by increasing demand for sustainable alternatives and growing awareness of environmental issues.

Moreover, collaboration and partnerships among companies are becoming common as they seek to enhance their product offerings and expand market reach. For instance, partnerships between manufacturers and retailers enable the development of co-branded biodegradable products, which can help to increase visibility and consumer adoption. Furthermore, companies are focusing on improving the quality and performance of their biodegradable bags through innovation in materials and production processes. Investments in sustainability initiatives are also gaining traction as companies recognize the long-term benefits of aligning their operations with eco-friendly practices. This collaborative approach is expected to enhance the competitive landscape and drive growth in the biodegradable plastic bags and sacks market.

Key companies in the biodegradable plastic bags and sacks market, such as NatureWorks LLC and Trex Company, Inc., are leveraging their expertise in advanced materials to create high-quality biodegradable solutions. NatureWorks LLC is known for its IngeoÔäó biopolymer, which is derived from plant materials and offers excellent performance in various applications. This innovation positions the company as a leader in the bioplastics industry. Similarly, Trex Company, Inc. focuses on producing environmentally-friendly products, including biodegradable alternatives, within the building and construction sectors. Their commitment to sustainability resonates with growing consumer demand for eco-friendly solutions, thereby strengthening their market position.