June 20, 2025 16:31
In a challenging macroeconomic environment for both the Italian and European industries, the compostable bioplastics sector has failed to buck the trend.
According to data presented yesterday by Paolo Arcelli of Plastic Consult at the 2nd Italian Forum on Compostable Bioplastics, organized by Assobioplastiche and Biorepack, the sector’s turnover in Italy dropped to €704 million in 2024, down from €832 million in 2023 (-15%) and well below the 2022 peak of €1.16 billion.
The trade association Assobioplastiche attributes the decline to several market distortions: dumping of low-cost products from the Far East, the widespread presence of illegal items (particularly shopping bags), and the proliferation of "pseudo-reusable" tableware that circumvents the Single-Use Plastics (SUP) Directive.
Despite the revenue drop—exacerbated by falling prices—the volume of compostable bioplastics processed in Italy grew modestly by 0.5%, reaching 121,500 tonnes. Even so, this is still below the nearly 128,000 tonnes recorded in 2022.
Regarding application segments, the Plastic Consult study highlights strong volume growth—exceeding 15%—for agricultural and food films. Ultralight bags also performed well, while shopping bags remained stable.
On the downside, bio-waste bags and single-use items saw declines, the latter dropping by around 10%, squeezed, explains Arcelli, by both unfair competition from pseudo-reusable products and influxes of compostable goods from Asia.
The sector snapshot shows the number of active companies in Italy holding steady: by year-end, there were 278 firms operating across the value chain — seven in basic and intermediate chemicals, 22 in compound production and distribution, 189 in primary processing, and 60 in secondary transformation. The number of employees declined slightly to 2,913, down 2.2% from the previous year.
“In the short term,” said Arcelli, “we don’t expect growth in volumes or revenue. Modest positive signals are emerging mainly in the ultralight bag segment, thanks to new markets beyond large-scale retail. There’s also promising potential in compostable coffee capsules, while no recovery is expected across most other applications in the coming months.”
One bright spot is the organic recycling of compostable bioplastics. As Biorepack reported last month, the 2024 recycling rate, net of contaminants, reached 57.8%, or 47,511 tonnes recycled out of the 82,246 tonnes placed on the market. This exceeds the 2025 target of 50% and even the 2030 goal of 55%.
Commenting on the data, Luca Bianconi (pictured), president of Assobioplastiche, pointed to the impact of non-EU imports, especially from Asia: “Today, purchasing a finished compostable bioplastic product made outside Europe costs less than the raw materials needed to produce it in Italy or any other EU country,” he explained. “Non-EU companies — mainly from Asia — often benefit from public subsidies, extremely cheap labor, and looser regulations than those applied in Europe.”
According to Bianconi, this represents an unsustainable competitive stress for Italian and European firms. “Until a few years ago, a significant share of compostable bioplastics sold in Europe was made by European manufacturers. Today, that share has shrunk. While European production capacity remains high, in many sectors it is now underutilized.”
Among the market distortions hindering growth, Assobioplastiche flagged the issue of pseudo-reusable tableware, marketed by exploiting a loophole in the SUP Directive, which bans single-use products but lacks precise criteria for what constitutes reusability. Italy has recently notified the EU of a technical proposal defining reusable products, on which comments are pending.
Illegal shopping bags also remain a major problem, accounting — according to the association — for over one-quarter of bags circulating in Italy, 10 years after penalties were introduced. In Italy, in fact, the only shopping bags allowed are those made of compostable plastic.
“To make a system that has already proven its economic and environmental value work properly, we just need a few clear, certain, and enforceable rules,” said Marco Versari (pictured), president of the Biorepack consortium. “As an EPR consortium dedicated to compostable packaging, we will continue to work toward recycling targets by partnering with all actors in the value chain, starting with the composting industry, and ensuring a sustainable end-of-life cycle for compostable packaging.”
During the event, Versari officially unveiled the new voluntary label "Organico Biorepack," which allows packaging producers to demonstrate participation in the EPR scheme for organic recycling.
Meanwhile, Bianconi announced a forthcoming change to Assobioplastiche’s membership structure, which will include representatives from organized retail through a statute amendment. “We consider retail chains a key stakeholder in our value chain — not only for the synergies we can create in application development, but also to ensure a legal framework that protects companies that operate transparently and according to the rules,” Bianconi said.
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