The demand for compostable and biodegradable refuse bags in the United States is entering a decisive growth phase, driven by regulatory momentum, shifting consumer behavior, and rapid innovation by both established manufacturers and emerging technology-focused players. Valued at USD 133.9 million in 2025, the market is forecast to reach USD 266.5 million by 2035, expanding at a healthy CAGR of 7.1% over the ten-year period.
This growth reflects a structural transition in waste handling, as municipalities, businesses, and households increasingly move away from conventional petroleum-based refuse bags toward certified compostable and biodegradable alternatives.
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Sustainability Policies and Waste Diversion Mandates Drive Market Expansion
Across the United States, regulatory frameworks promoting landfill diversion and organic waste separation are reshaping procurement patterns. Municipal organic-waste collection programs, particularly in the West, South, and Northeast regions, are specifying the use of compostable liners to reduce contamination in green bins and improve compost quality. At the same time, foodservice operators, hospitality groups, grocery chains, and retailers are aligning their waste-management practices with sustainability commitments, boosting recurring demand for environmentally compliant refuse bags.
Household composting is also gaining momentum. As curbside organics programs expand into suburban and urban communities, consumers increasingly favor compostable refuse bags that integrate seamlessly into local waste treatment systems. This convergence of public-sector mandates, commercial compliance, and rising residential awareness creates a balanced and resilient demand structure for the decade ahead.
Quick Stats: USA Compostable & Biodegradable Refuse Bags Demand
- Market Value (2025): USD 133.9 million
- Forecast Value (2035): USD 266.5 million
- Forecast CAGR (2025–2035): 7.1%
- Leading Product Type: Compostable Bags
- Key Growth Regions: West USA, South USA, Northeast USA
- Top Players: Vegware Global, Cedo Ltd., BioBag International AS, Clondalkin Group Holdings B.V., Cardia Compostable
Compostable Bags Lead as Performance and Certification Improve
Compostable refuse bags represent the dominant product category, accounting for over half of total demand. Their leadership stems from compatibility with community and industrial composting streams, as well as clear certification under standards such as ASTM D6400 and BPI labeling. Consumers and institutional buyers increasingly prefer plant-based feedstocks and verified compostability, ensuring bags break down without leaving microplastic residue.
Importantly, manufacturers are investing in performance enhancements. Advances in tear resistance, moisture tolerance, and tensile strength are expanding the use of compostable bags across both residential kitchens and high-volume commercial settings. These improvements address earlier concerns around leakage and durability, supporting broader acceptance and repeat purchasing.
Capacity, Product Type, and Material Trends Shape Purchasing Decisions
By Capacity:
- 7–20 gallon bags (33.0%) dominate due to widespread household and municipal use.
- Above 55 gallon bags (23.0%) serve commercial kitchens and institutional composting sites.
- 30–40 gallon formats (20.0%) balance indoor and outdoor applications.
- 20–30 gallon and 40–55 gallon sizes (12.0% each) support workplaces and hospitality venues.
By Product Type:
- Compostable bags (54.5%) lead due to regulatory acceptance and certification.
- Biodegradable bags (45.5%) remain relevant in regions with limited composting infrastructure.
By Material:
- PLA (42.0%) leads thanks to scalable supply and strong performance.
- Starch blends and PBS (17.0% each) enhance flexibility and composting efficiency.
- PBAT (13.0%) balances durability for heavier loads.
- PHA (11.0%) aligns with future sustainability goals despite higher costs.
Regional Outlook: Policy Strength Drives Uneven but Strong Growth
Regional performance reflects differences in environmental policy enforcement and composting infrastructure:
- West USA (8.2% CAGR): Leads adoption due to strict plastic regulations, widespread organics programs, and high environmental awareness.
- South USA (7.3% CAGR): Growth driven by population expansion, pilot composting initiatives, and retail positioning around odor control and durability.
- Northeast USA (6.6% CAGR): Mandatory organics recycling and dense urban waste challenges accelerate certified compostable liner adoption.
- Midwest USA (5.7% CAGR): Gradual infrastructure expansion supports steady, value-focused growth.
Competitive Landscape: Established Leaders and New Innovators Scale Up
Competition in the U.S. compostable and biodegradable refuse-bag market is defined by certification credibility, supply reliability, and distribution reach. Vegware Global holds a leading position with strong penetration in foodservice and institutional channels. Cedo Ltd. competes through cost-effective solutions and private-label partnerships, while BioBag International AS benefits from long-standing relationships in regions with active composting mandates.
Meanwhile, Clondalkin Group Holdings B.V. emphasizes durability and branding for retail partners, and Cardia Compostable focuses on scalable, starch-based solutions for municipal and B2B procurement. Alongside these established players, new manufacturers are entering the market with advanced bio-resin technologies, improved automation compatibility, and localized production strategies aimed at reducing costs and carbon footprints.
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