Top 10 Companies in the Environmentally Friendly Plastic Bags Industry (2026): Market Leaders Powering Sustainable Packaging

In Business Insights
April 03, 2026

The Global Environmentally Friendly Plastic Bags Market was valued at USD 1.68 Billion in 2023 and is projected to reach USD 2.34 Billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 3.70% during the forecast period (2024–2032). This growth is being driven by stringent global regulations on single-use plastics, heightened consumer demand for sustainable products, and significant innovation in biodegradable and compostable materials.

As the packaging industry rapidly pivots toward circular economy models, the spotlight is on the companies pioneering the development and distribution of truly sustainable alternatives. In this blog, we profile the Top 10 Companies in the Environmentally Friendly Plastic Bags Industry—a mix of specialized innovators, chemical giants, and packaging leaders who are redefining the future of consumer and industrial packaging.


🔟 10. Abbey Polythene

Headquarters: Devon, United Kingdom
Key Offering: Compostable bags, Recycled-content polyethylene bags

Abbey Polythene, operating as the Polybag Group, is a prominent UK-based supplier with a strong focus on eco-friendly packaging solutions. The company combines traditional expertise with a modern, sustainable ethos, offering bags made from recycled materials and certified compostable polymers.

Sustainability Initiatives:

  • Investment in renewable energy at manufacturing sites

  • Development of a circular product range including ‘Recycle With Us’ collection services

  • Commitment to achieving net-zero carbon operations by 2040


9️⃣ 9. RKW Group

Headquarters: Mannheim, Germany
Key Offering: Bio-based polyethylene films, Compostable carrier bags

RKW Group is a leading global manufacturer of high-quality films for a diverse range of sectors, including packaging. Its RKW Hyvanto product range includes certified, bio-based polyethylene films that offer a reduced carbon footprint while maintaining performance, catering to major European retailers.

Sustainability Initiatives:

  • Strategic focus on “Sustainable Solutions” product portfolio

  • Partnerships with raw material suppliers for certified bio-feedstocks

Download FREE Sample Report:
Environmentally Friendly Plastic Bags Market – View in Detailed Research Report


8️⃣ 8. Xtex Polythene Ltd

Headquarters: Lancashire, United Kingdom
Key Offering: Degradable polyethylene bags, Oxo-biodegradable solutions

Xtex Polythene is a UK specialist in polythene films and bags, with a strong emphasis on providing environmentally responsible options. The company focuses on oxo-biodegradable technology, which introduces additives to traditional polythene to accelerate its degradation in specific conditions, offering a transitional solution.

Sustainability Initiatives:

  • Education and advocacy for responsible waste management alongside product sales

  • Transparent certification and compliance for its degradable product lines


7️⃣ 7. Symphony Environmental Technologies

Headquarters: Borehamwood, United Kingdom
Key Offering: d2w® Oxo-biodegradable additive technology

Symphony Environmental is a pioneer in advanced plastic technologies rather than a bag manufacturer. Its proprietary d2w® technology is supplied to converters worldwide, enabling the production of plastic bags that biodegrade much faster than conventional plastics in the open environment, leaving no microplastics.

Sustainability Initiatives:

  • Global advocacy for scientifically-backed standards for biodegradable plastics

  • Development of d2p® anti-microbial and other functional technologies for enhanced material sustainability


6️⃣ 6. EnviGreen

Headquarters: Bangalore, India
Key Offering: 100% organic and biodegradable bags made from natural starch and vegetable oil

EnviGreen has gained international recognition for its innovative approach to creating plastic-like bags from entirely natural, non-toxic, and edible materials. Their bags dissolve in water at 80°C and decompose naturally in soil within months, representing a breakthrough in waste-free packaging from an emerging market leader.

Sustainability Initiatives:

  • Commitment to a zero-plastic, zero-toxin formulation

  • Focus on scalable, cost-effective solutions for mass markets in Asia and Africa

Read Full Report:
Environmentally Friendly Plastic Bags Market – View in Detailed Research Report


5️⃣ 5. BASF SE

Headquarters: Ludwigshafen, Germany
Key Offering: ecovio® (compostable biopolymer), Ecoflex® (biodegradable base polymer)

The chemical giant BASF is a crucial enabler of the bioplastics industry. It supplies certified, high-performance biopolymers like ecovio®, which is used by converters globally to manufacture fully compostable bags for organic waste collection, shopping, and other applications.

Sustainability Initiatives:

  • Investment in R&D for advanced biodegradable and bio-based polymers

  • Global partnerships to build certification and industrial composting infrastructure


4️⃣ 4. Plastiroll (Now part of VP Group)

Headquarters: Helsinki, Finland
Key Offering: Biodegradable and compostable bags, Bio-based carrier bags

Plastiroll, a historically significant Finnish packaging producer now under the VP Group, is a Nordic leader in sustainable packaging. The company offers a comprehensive portfolio of bags made from materials like PLA (corn starch) and other compostable bioplastics, serving the stringent demands of the European retail and food service sectors.

Sustainability Initiatives:

  • Pioneering the use of renewable and recycled raw materials in the Nordic region

  • Active participation in developing and promoting national recycling and composting systems

Download FREE Sample Report:
Environmentally Friendly Plastic Bags Market – View in Detailed Research Report


3️⃣ 3. Jiangsu Torise Biomaterials Co., Ltd

Headquarters: Changzhou, China
Key Offering: PLA (Polylactic Acid) resins and finished biodegradable bag products

As one of Asia’s key manufacturers of PLA-based biodegradable products, Torise Biomaterials plays a pivotal role in the regional supply chain. The company produces resin and converts it into a wide array of certified compostable bags, leveraging China’s manufacturing scale to serve growing domestic and international demand.

Sustainability Initiatives:

  • Focus on cost-competitive, scalable production of PLA products

  • Strategic alignment with Chinese government policies promoting biodegradable alternatives


2️⃣ 2. Novolex Holdings, LLC

Headquarters: Hartsville, South Carolina, USA
Key Offering: Bagasso® compostable bags, Recycled content bags under brands like Hilex Poly

Novolex is a North American packaging powerhouse with a diverse portfolio that includes a significant and growing line of sustainable products. Through acquisitions and internal development, Novolex offers both compostable bags and bags made with high percentages of post-consumer recycled (PCR) content, providing solutions across the sustainability spectrum.

Sustainability Initiatives:

  • Goal to make 100% of products recyclable, compostable, or reusable by 2025

  • Major investments in recycling infrastructure and PCR resin production


1️⃣ 1. BioBag International AS

Headquarters: Askim, Norway
Key Offering: Certified compostable bags (EN 13432, ASTM D6400) from Mater-Bi® and other biopolymers

BioBag is arguably the world’s most recognized brand dedicated solely to compostable bags and films. As a true pioneer, the company has been instrumental in developing the global market for certified compostable products, supplying everything from kitchen food waste bags to large agricultural films.

Sustainability Initiatives:

  • Worldwide advocacy and education on industrial composting systems

  • Long-term strategic partnership with Novamont for Mater-Bi® resin supply

  • Entire product range designed for a cradle-to-cradle lifecycle within composting facilities

Get Full Report Here:
Environmentally Friendly Plastic Bags Market – View in Detailed Research Report


🌍 Outlook: The Future of Environmentally Friendly Packaging Is Multi-Material and Circular

The environmentally friendly plastic bags market is undergoing a profound evolution. While early solutions focused on simple degradability, the industry is now converging on certified, performance-driven materials designed for specific end-of-life pathways within a circular economy.

📈 Key Trends Shaping the Market:

  • Shift from oxo-degradable to certified compostable (EN 13432/ASTM D6400) as the gold standard.

  • Blending of biopolymers (PLA, PHA, PBS) to improve performance characteristics like strength and moisture resistance.

  • Integration of digital technologies (QR codes, blockchain) for supply chain transparency and consumer education on proper disposal.

  • Rising regulatory pressure, particularly in Europe and Asia, mandating compostable bags for specific applications like organic waste collection.

Get Full Report Here:
Environmentally Friendly Plastic Bags Market – View in Detailed Research Report

The companies listed above are not only supplying sustainable packaging—they are actively building the infrastructure and standards required for a truly circular global economy.