In recent years, the environmental impacts of plastic production and consumption have become increasingly significant, particularly due to their petroleum-based origins and the substantial waste management challenges they pose. Currently, global plastic waste production has reached 413.8 million metric tons across 192 countries, contributing notably to greenhouse gas emissions. Bioplastics have emerged as eco-friendly alternatives, with bioplastic carrier bags composed of 20% starch, 10% additives, and 70% polybutylene adipate terephthalate (PBAT) being the focus of this research. This study aimed to evaluate the biodegradation of these bioplastic bags under industrial composting conditions, addressing the gap in the existing literature that often lacks real-world applicability. A large-scale composting experiment was conducted using 37.5 tons of manure/wood and 50 tons of biopolymer bags over 12 weeks. Results showed that compost temperatures peaked at 70 °C and remained above 50 °C, pH levels stabilized at 8.16, and electrical conductivity was recorded at 1251 μs cm−1. Significant changes were observed in key metrics, such as the carbon-to-nitrogen ratio and organic matter content. Disintegration tests revealed that 95% of the bags disintegrated by the 12th week, though ecotoxicity tests indicated varying germination inhibition rates. Advanced analytical methods (Fourier transform infrared spectroscopy, gas chromatography coupled with mass spectrometry) highlighted morphological and chemical transformations in the bags. This research enhances understanding of bioplastic degradation in real-world composting environments and suggests potential improvements to existing standards, promoting sustainable waste management solutions.