Why Restaurants and Cloud Kitchens Are Switching to Bagasse Packaging

I’ll be honest — when I first started thinking about sustainable packaging, I was focused on big things like exporting chemicals and jacquard fabrics. But during my research, one material kept popping up again: bagasse — and it wasn’t just for artisanal cutlery or small eco-brands. I realized that restaurants and cloud kitchens—the very heart of the food-delivery boom—are rapidly switching to bagasse packaging. And once I understood why, I knew this was more than a trend. It’s a transformation.

From Waste to a Restaurant’s Secret Weapon

Bagasse is essentially the fibrous residue left after sugarcane is crushed, which most people would call “waste.” But for forward-thinking food businesses, this waste is a raw material full of potential. Rather than burning it or discarding it, manufacturers convert bagasse into durable, compostable containers — clamshell boxes, food trays, bowls, and more. For restaurants and delivery kitchens, this offers a way to package food in a way that aligns with both their sustainability goals and operational needs.

Regulation Is Pushing the Change

One of the biggest drivers for this shift is regulation. Around the world, governments are introducing stricter bans on single-use plastic food packaging. According to recent reporting, many regions have already begun rolling out plastic bans for takeaway containers. For cloud kitchens especially — which rely heavily on disposable packaging — this is a wake-up call: adapt or face penalties.

And it’s not just bans. Consumer demand is rising sharply for eco-friendly packaging. The global eco-friendly food packaging market, which includes compostable and biodegradable materials such as bagasse, is huge — estimated at USD 227.96 billion in 2024, and projected to reach USD 353.78 billion by 2030. Meanwhile, the compostable food-service packaging segment alone was valued at USD 20.92 billion in 2024 and is expected to reach USD 39.88 billion by 2032, growing at a CAGR of 8.4%. These numbers show that restaurants and cloud kitchens switching to bagasse are not just being “green” — they’re making business decisions based on very real economic momentum.

Why Bagasse Works for Food Delivery

For delivery-focused kitchens, packaging isn’t just about holding food — it has to protect, insulate, and resist leaks. Bagasse scores on all these fronts:

• It’s microwave-safe and can handle hot food, unlike some bioplastics that may deform.

• It has natural oil-resistance, so even greasy items (think curry bowls or fried snacks) don’t leak.

• It’s strong and rigid, which keeps containers from collapsing or dripping during transport.

In fact, a cloud kitchen in Dubai switched to bagasse clamshells from a major supplier. After making the change, they reported zero leakage in 60-minute deliveries, 28% reduction in packaging waste costs, and a 15% boost in customer reviews mentioning eco-friendly packaging.

Sustainability + Brand Image = Customer Loyalty

Switching to bagasse isn’t just a compliance play — it’s a powerful brand signal. Today’s customers, especially younger ones, increasingly care about ecological impact. When a delivery arrives in a plant-fiber container that looks natural and feels sturdy, it makes a statement. It’s not just about food quality anymore; presentation and environmental responsibility matter. For restaurants and cloud kitchens, using bagasse:

• Enhances their green credentials

• Attracts eco-conscious customers

• Helps build trust and loyalty

• Aligns with global ESG (Environmental, Social, Governance) trends

Financial Sense — Even for High-Volume Kitchens

Some might worry that eco-packaging must be expensive. But the economics of bagasse are improving, especially as demand grows. Because bagasse originates from a byproduct of sugarcane mills, the raw material is relatively abundant. For restaurants, this means that switching to compostable containers can be done without a prohibitive cost spike. Plus, by reducing waste handling costs (as seen in that Dubai kitchen), many cloud kitchens may find that bagasse pays itself off in operations.

Moreover, the sustainable foodservice packaging market is growing rapidly: one report projects it will grow from USD 33.88 billion in 2024 to around USD 114.34 billion by 2035 (CAGR of ~11.7%). This growth isn’t just good for the environment—it’s a huge business opportunity for food brands ready to scale with sustainability.

Infrastructure and Supply Chain Are Improving

The fear that compostable packaging lacks infrastructure is lessening. As more foodservice brands pivot to bagasse, composting ecosystems are catching up. Manufacturers of bagasse containers are obtaining important certifications for compostability, and many are aiming to create packaging that meets international standards.

At the same time, sugarcane-rich regions are seeing more investment in value-added bagasse manufacturing. This helps cloud kitchens and restaurants ensure reliable supply. As demand heats up, production capacity is expanding—lowering costs and increasing accessibility.

Real Businesses Are Already Making the Shift

Beyond the Dubai example, global food brands are also realising the power of bagasse:

• McDonald’s Japan switched select packaging to bagasse clamshell containers, driven by both regulations and customer sustainability demands.

• Many foodservice chains and QSRs (quick service restaurants) see bagasse as a way to retain brand trust while reducing environmental impact.

• In countries with strict plastic bans, bagasse packaging offers a zero-plastic compliance route — and a chance to market themselves as eco-friendly.

Why This Switch Feels Personal to Me

As someone exploring export opportunities, I looked at bagasse from the lens of raw materials and global demand. But as I studied cloud kitchens and restaurants, something clicked: bagasse is not just for exporting — it’s already being used on the ground, every day, by kitchens that deliver thousands of meals.

That’s powerful. It means bagasse isn’t a niche product reserved for premium “green” cafés. It’s part of the mainstream food-delivery economy. And because the food-delivery market is exploding (especially cloud kitchens), I see this as a strategic lever for business — whether in supply, export, or local partnerships.

Switching to bagasse feels less like a sacrifice and more like a smart evolution — for the planet and for business.

Challenges to Watch — And How to Overcome Them

Of course, adopting bagasse packaging isn’t without its challenges:

• Compost Infrastructure: Not all regions have composting facilities, so some used containers may still go to landfill.

• Perceived Cost: For very small kitchens, the initial cost premium may feel steep — though economies of scale and reduced waste handling can help.

• Supply Chain Risk: Consistent supply of compostable bagasse items depends on reliable manufacturing and certification.

But these challenges are temporary and solvable. As regulations tighten, consumer expectations grow, and supply chain maturity improves, the benefits will outweigh the costs.

What’s Next for Restaurants and Cloud Kitchens

Looking ahead, I believe several things will happen:

1. More cloud kitchens will convert to bagasse-based takeaway packaging.

2. Restaurants will use bagasse in branding and packaging to highlight sustainability.

3. Compost collection / circular waste programs will grow in cities to support the bagasse transition.

4. Exporters like us can tap into this demand by connecting bagasse manufacturers with food brands around the world.

If Subera International ever decides to expand into eco-material exports, bagasse is one of the most promising categories to explore — not just because it’s sustainable, but because the foodservice industry is already leading the demand.

Final Thoughts

The shift by restaurants and cloud kitchens to bagasse packaging is not just a green trend — it’s a smart, future-facing business move. For me, understanding this change has been eye-opening. Bagasse is not just about reducing plastic waste; it’s about aligning food production, delivery, and consumption with a circular, sustainable model.

This is more than packaging. It’s a statement of responsibility, innovation, and long-term vision. And for anyone in the export-business space — especially someone like me, building Subera International — bagasse presents a powerful opportunity to be part of a greener food future.