The Middle East compostable packaging market size is anticipated to reach USD 773.8 million by 2033, growing at a CAGR of 5.1% from 2025 to 2033, according to a new report by Grand View Research, Inc. The industry occupies a critical niche within the region’s evolving sustainability landscape, driven by the rising emphasis on reducing plastic waste and aligning with circular economy principles. Compostable packaging is increasingly recognized for its ability to balance durability, barrier protection, and environmental responsibility, making it a preferred choice across industries such as food and beverage, consumer goods, e-commerce, and personal care. Its versatility allows it to be used in films, pouches, rigid containers, and specialty applications where performance and eco-friendliness are equally important.
As regional governments introduce stricter regulations on single-use plastics and multinational brands expand their sustainable product portfolios, compostable packaging has become integral to both commercial strategies and environmental goals, positioning it as a cornerstone of the Middle East’s packaging transformation.
One of the primary catalysts for the market expansion is the growing regional focus on sustainability and circular economy initiatives. Increasing adoption of bio-based and compostable materials helps reduce dependency on conventional plastics while lowering the environmental footprint of packaging. Innovations in resin formulations and product designs are improving the strength, shelf-life compatibility, and barrier properties of compostable solutions, making them viable alternatives for mainstream packaging needs. Additionally, supportive government policies, corporate sustainability commitments, and consumer preference for eco-friendly products are accelerating the shift toward compostable packaging across food, personal care, retail, and e-commerce sectors.
Concurrently, collaborations between material innovators and packaging manufacturers are accelerating the development of next-generation compostable packaging solutions in the Middle East. These partnerships focus on enhancing barrier performance, durability, and printability to meet the stringent requirements of food, beverage, and personal care sectors. At the same time, advancements in bio-resins derived from agricultural waste and renewable feedstocks are strengthening the region’s push toward sustainable alternatives. Combined with tightening environmental regulations and corporate commitments to reduce plastic waste, these innovations are steering the compostable packaging market into new high-value applications and cementing its role in the regional sustainability agenda.
The market players are focusing on various strategic initiatives such as mergers, acquisitions, and collaborations. For instance, in July 2025, Hotpack Global, a prominent manufacturer of sustainable packaging based in the UAE, released its 2024 Sustainability Report, indicating that 97% of its product range (more than 4,000 items) is now either recyclable or environmentally friendly. To support this initiative, the company collaborated with RWTH Aachen University in Germany to conduct a detailed Life Cycle Assessment (LCA) throughout its value chain-covering raw material procurement, manufacturing, and disposal—to scientifically measure and enhance its sustainability efforts.
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Based on product, PLA (Polylactic Acid) accounted for the largest share of 57.76% in 2024.
Based on application, Food & Beverage Packaging held the largest market share of 55.23% in 2024.
Saudi Arabia dominated the market in 2024. Regulatory support, including biodegradable packaging certifications and plastic-use restrictions, is accelerating adoption across key sectors like foodservice, retail, and e-commerce.
Grand View Research has segmented the Middle East compostable packaging market on the basis of product, applications, and country:
Middle East Compostable Packaging Product Outlook (Revenue, USD Million, 2021 - 2033)
PLA (Polylactic Acid)
Starch Blends
PHA (Polyhydroxyalkanoates)
Cellulose Films & Others
Paperboard
Bagasse & Molded Fiber
Other Products
Middle East Compostable Packaging Application Outlook (Revenue, USD Million, 2021 - 2033)
Food & Beverage Packaging
Consumer Goods & E-commerce Packaging
Personal Care & Cosmetics Packaging
Industrial & Agriculture Packaging
Other applications
Middle East Compostable Packaging Country Outlook (Revenue, USD Million, 2021 - 2033)
Middle East
Saudi Arabia
UAE
Oman
Kuwait
Qatar
Bahrain
Israel
Turkey
List of Key Players in the Middle East Compostable Packaging Market
Hotpack Global
INDEVCO Group
BioPak Middle East
GreenGood Manufacturing
Avani Eco
Ecoway Biopolymers LLC
Ecolife Bioplastics
Napco National
Taghleef Industries
Gulf Manufacturing Co.
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