A method for managing container images in a container hosting environment, comprising a set of machine nodes for hosting container images, comprises the following steps. At a machine node of the set of machine nodes, at least one image layer of a container image comprising multiple image layers is identified for compaction. The identified image layer is compacted by merging data of the identified layer with data of another image layer of the container image. The data of the compacted image layer is transmitted to a backup store remote from the machine node for storage. The set of machine nodes and the backup store are implemented via processing devices operatively coupled via a communication network to form the container hosting environment. The compacted image layer may then be recovered from the backup store.