Compostable Cutlery Market - Forecast(2024 - 2030)

Compostable Cutlery Market Overview:

Compostable Cutlery Market size is estimated to reach $65.7 Million by 2030, growing at a CAGR of 4.6% during the forecast period 2024-2030. The increasing consumer awareness of the adverse environmental impacts associated with non-biodegradable plastic utensils; government regulations aimed at curbing single-use plastics are propelling the Compostable Cutlery growth. Additionally, the ascendant popularity food service industry is creating substantial growth opportunities for the Compostable Cutlery Market. In 2023, As per National Restaurant Association, the foodservice sector is projected to achieve an impressive $997 billion in sales. This growth is underpinned by evolving consumer preferences, which are increasingly gravitating towards sustainable dining choices. Compostable cutlery plays a pivotal role in this transition, aligning with the industry's eco-conscious focus. These factors positively influence the Compostable Cutlery industry outlook during the forecast period.

Compostable Cutlery Market - Report Coverage:

The “Compostable Cutlery Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Compostable Cutlery Market.

COVID-19 / Ukraine Crisis - Impact Analysis:

• The COVID-19 pandemic brought about notable shifts in the Compostable Cutlery market. Initially, the market experienced setbacks due to supply chain disruptions and reduced demand as restaurants and foodservice establishments closed or limited operations. However, the pandemic's focus on hygiene and eco-friendliness eventually bolstered demand for compostable cutlery, especially in takeout and delivery services.
•  The Ukraine crisis had a limited direct impact on the Compostable Cutlery market. Most of the raw materials for compostable cutlery production are sourced from regions unaffected by the crisis. However, the crisis introduced economic uncertainties, which indirectly affected global markets and consumer sentiment. While potential supply chain disruptions and increased costs loomed, the market remained relatively stable, driven by the persistent demand for sustainable and eco-friendly dining alternatives.

Key Takeaways:

• Asia-Pacific Exhibits Fastest Growth

Asia Pacific is expected to grow at the highest CAGR of 5.6% during the forecast period 2024-2030. The rising environmental consciousness and concerns regarding the ecological impact of plastics have fueled the demand for compostable cutlery. Additionally, proactive government initiatives such as regulations and incentives have encouraged both businesses and consumers to adopt eco-friendly alternatives. In 2023, As per NITI Report, 73 percent of consumers attribute their awareness of environmental consciousness and concerns regarding the ecological impact of plastics. This heightened awareness has been a significant driving force behind eco-friendly alternatives like Compostable Cutlery.

• Starch Blends to Register the Fastest Growth

Starch Blends segment is anticipated to grow at higher CAGR during the forecast period owing to their eco-friendly nature and versatility. Derived from renewable sources such as corn or potatoes, these blends align perfectly with the global push to reduce plastic waste. Starch-based cutlery's biodegradability and compostability make it an ideal choice for environmentally-conscious consumers and businesses. Moreover, their compatibility with various manufacturing processes allows for a wide range of product options, enhancing their appeal. For Instance, PBS/starch blends exhibit promising properties when tested in soil conditions with a temperature of 25°C and 60% moisture content. This specific environment allows for a substantial 7% biodegradation of the material within a mere 28 days. This result underscores the compostable nature of these cutlery items, aligning with the market's growing demand for eco-friendly dining solutions.

• EN13432 is Leading the Market

EN13432 segment held the largest market share in 2023 owing to its widespread recognition and adoption in the industry. EN13432 is considered a gold standard for compostability, not only in Europe but globally, providing consumers and businesses with confidence in the product's environmental claims. This certification's rigorous criteria and alignment with international standards have established it as a trusted symbol of eco-friendliness, driving the increasing demand for EN13432-certified compostable cutlery and positioning it as a market leader.

• The Increasing Consumer Awareness of Plastic Utensil Environmental Impact

With a heightened sense of responsibility towards our planet, consumers are actively seeking eco-friendly alternatives. Compostable cutlery, crafted from biodegradable materials like cornstarch, bamboo, and wooden sources, has become an attractive choice. The shift towards sustainable dining options is driven by concerns about plastic pollution, and this is translating into a surge in demand for compostable cutlery. As per US Plastics Pact, 100% of plastic packaging reusable, recyclable, or compostable by 2025 represents a monumental stride in the global sustainability agenda. This ambitious goal resonates deeply with the Compostable Cutlery market, which has been at the forefront of providing eco-friendly dining solutions.

• Government Regulations Aimed at Curbing Single-Use Plastics

With an increasing focus on environmental sustainability and the urgent need to reduce plastic waste, many governments have introduced stringent bans on single-use plastics, including disposable utensils. This regulatory push is compelling both consumers and businesses to seek alternative, eco-friendly options. Compostable cutlery, composed of biodegradable materials, has emerged as a viable solution in compliance with these regulations. According to a UNEP report, The global movement to tackle single-use plastics waste is gaining momentum, with over 60 countries implementing measures such as bans and levies. Some nations have taken a direct approach by imposing bans on single-use plastics. This is highly relevant to the Compostable Cutlery market, which offers an eco-friendly alternative to traditional plastic utensils.

• High Cost of Raw Materials Hamper Market Growth

The production of compostable cutlery relies on specific biodegradable materials like cornstarch, bamboo, or biodegradable plastics. The limited availability of these materials and the complex manufacturing processes contribute to elevated production costs. As a result, the market faces pricing challenges, which can deter budget-conscious consumers and businesses from making the transition to compostable cutlery. Balancing the need for sustainability with cost-efficiency remains a critical challenge in propelling market growth. According to the World Bank, raw material prices are projected to average 10% higher this year compared to 2020, with an expectation of stabilization in 2023. These price dynamics are particularly relevant to the Compostable Cutlery industry, as it relies on specific biodegradable materials.

Compostable Cutlery Market Share (%) By Region, 2023

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Key Market Players:

Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Compostable Cutlery Market. The top 10 companies in this industry are listed below:

1. Eco-Products, Inc.
2. World Centric
3. Dixie
4. Lollicup USA
5. Biodegradable Food Service, LLC
6. AmerCareRoyal
7. BioPak
8. Ecovita
9. Vegware
10. Minima

Scope of the Report: