What is driving growth in moulded pulp?
Can regulation alone transform the packaging market? Alexander Koukoulas joins the Smithers Insights Podcast to explore what's fuelling the rise of moulded pulp.
Sustained growth for $4.7 billion moulded pulp packaging market
The market for moulded pulp was worth $4.7 billion in 2025, according to Smithers, the leading global authority on packaging markets.
Data in its newly published report, The Future of Moulded Pulp Packaging to 2030, reveal that global demand is projected to reach $5.5 billion in 2026, representing a global growth rate of 4.1% CAGR – outpacing GDP growth.
The report highlights that growth is being driven by mounting regulatory pressure and voluntary corporate sustainability commitments accelerating the transition away from plastic packaging.
Despite a challenging macroeconomic environment that has tempered investment across many packaging segments, moulded pulp is expected to remain resilient. The ongoing conversion from expanded polystyrene (EPS) to moulded pulp – particularly in takeaway food packaging – is a significant growth driver.
Significant opportunities in emerging markets and new end-use applications
Beyond established markets, Smithers identifies particularly strong growth momentum in Asia and Africa, where demand is accelerating rapidly as these regions align with more mature packaging markets.While eggs and bottle/wine shipping continue to be stable, well-established end uses for moulded pulp, the report points to significant growth opportunities in foodservice, cosmetics, and pharmaceutical applications. Growth rates for foodservice and medical applications are projected at 4.7% and 4.2% CAGR respectively, while cosmetics applications are forecast to grow at 3.6% CAGR – underscoring the broadening appeal of moulded pulp beyond its traditional segments.
Strengthening regulatory frameworks across key markets
Regulatory developments are continuing to drive innovation across the moulded pulp sector on a global scale. In Europe, the first phase of the PPWR is set to come into full effect in August 2026, while EPR legislation is gradually broadening its reach across US states. In Asia, China has introduced more stringent sustainable packaging requirements in 2025, including financial penalties for single-use plastics that do not meet recyclability or compostability standards. Moulded fibre is therefore well placed to serve as a viable alternative, particularly in takeaway and disposable food-contact applications.Across all regions, regulation, corporate sustainability pledges, and growing public pressure are expected to work in tandem to drive continued growth in moulded fibre packaging.
