The sugarcane-based packaging market is set for remarkable growth, projected to rise from USD 351.60 million in 2024 to USD 612.76 million by 2030, with a CAGR of 9.70%.

This market is a significant player in the global sustainable packaging sector, celebrated for its eco-friendly nature and biodegradability. Made from bagasse, the fiber leftover from sugar extraction, it is gaining momentum in sectors like food service, retail, and e-commerce due to its durability, grease resistance, and compostability. Global regulatory shifts to cut plastic waste alongside consumer demand for environmentally responsible products are key drivers in its adoption.

The market's growth is bolstered by the worldwide shift toward circular economy practices and sustainable supply chains. Sugarcane-derived materials offer a smaller carbon footprint compared to petroleum-based packaging, aligning with corporate sustainability targets. Progress in fiber processing and barrier-coating has enhanced the moisture resistance and structural integrity of sugarcane packaging. As multinational corporations lean towards eco-friendly packaging, the demand for scalable, cost-effective sugarcane solutions is expected to increase.

Market leaders are engaging in strategic mergers, acquisitions, and collaborations. Notably, CHUK expanded its compostable tableware line in September 2024, introducing items like a beverage cup, small bowl, and snack tray, designed to replace plastics in the food service industry.