Global compostable flexible packaging market to reach $5.18B by 2035 with 12.3% CAGR driven by eco-friendly demand.

The global compostable flexible packaging market, valued at $1.42 billion in 2025, is projected to grow to $5.18 billion by 2035 at a 12.3% CAGR. Growth is fueled by increasing regulations against single-use plastics, consumer demand for sustainable packaging, advancements in compostable materials, and expanding composting infrastructure. Key players include NatureWorks LLC, Novamont, and Danimer Scientific, with North America and Asia Pacific leading market development. Innovations in high-barrier compostable films and government incentives are expected to further boost adoption across food, retail, and e-commerce sectors.