Compostable packaging is still evolving but highly favored: experts point out its most effective application scenarios

Although manufacturers and composters are still resolving many process issues surrounding compostable materials, industry experts say that using such packaging in the right scenarios has enormous potential. Clear labeling and consumer education will be key to its widespread adoption.

"Brands should adopt compostable packaging in scenarios where packaging is associated with food waste or food scraps," Olga Kachook, director of the Sustainable Packaging Coalition, said in an email. She cited food service, coffee, tea, and pre-packaged or prepared meals as good use cases.

Aligned with the U.S. Plastics Pact's 2025 goals, many food and beverage brands are working to replace traditional plastic packaging with reusable or compostable, recyclable materials. According to Data Bridge Market Research analysis, the global compostable packaging market could grow to as much as $75 billion by 2029.

Single-use compostable food service items such as plates, containers, and bags can be made from tree or plant fibers, including wheat straw or bamboo. These products can also be manufactured from bagasse, the residue left over after sugarcane processing.

At Eco Montana, which offers compostable food service items, founder Heidi Noyes aims to create positive change in the local takeout industry by replacing plastic. In addition to fiber boxes, trays, and bowls, she also offers clear products made from corn-derived polylactic acid resin (PLA).

Lids made from PLA look similar to plastic and are considered helpful for food service because consumers can see inside the container. However, the material is not suitable for hot food. "Any hot food will cause these lids to start breaking down," Noyes said.

Noyes also mentioned a new straw manufacturer in Montana that focuses on using polyhydroxyalkanoate (PHA) derived from canola oil, a material that is home compostable and biodegradable in marine environments. "They feel and look like plastic," she said.

Rich Cohen, president and founder of Elevate Packaging in Illinois, said what ultimately matters is that compostable packaging performs "as well as or better than plastic." His company offers certified compostable products, including pressure-sensitive labels, coffee bags, and food service gloves that can replace latex or vinyl.

Minnesota-based NatureWorks primarily offers biopolymers made from PLA and sees coffee capsules as an application with strong potential.

"The key is the amount of coffee in the capsule," said Steve Davies, vice president of the company's performance packaging division (who recently retired). He explained that by weight, coffee is typically six times the packaging, highlighting the importance of ensuring organic matter is recovered in the composting stream.

But downstream barriers remain, and many Americans still lack adequate composting facilities.

"Brands should look for ways to support consumer advocacy for such facilities, so that composting of food waste and certified compostable packaging becomes as common and familiar in more communities as curbside recycling," Kachook said. She added that municipalities also play an important role in "helping educate consumers to view composting as 'another recycling' program and teaching its connections to climate change, soil health, and regenerative agriculture."

Large live events—although reusable food service items are also on the rise, single-use food service supplies are still frequently used—are considered ideal venues for implementing compostable packaging standards and overcoming infrastructure barriers.

"We really think the best application for (food service items) is in closed venues, like stadiums," Davies said. When venues fully transition to compostable products, consumers won't be confused about how and where to discard items.

As events adopt new practices, this also helps drive change at the local level. Noyes cited an example: a farmers market in Montana that, by requiring all vendors to use compostable packaging, achieved near-zero waste in just one year.

"There are so many events doing this now that some vendors simply switch to compostable packaging rather than stocking both types of containers," she said.

Clearer labeling is key

Beyond finding the right compostable use cases, clearer labeling remains an important frontier for improving the diversion of such packaging.

The US Composting Council and BPI (Biodegradable Products Institute) recently released a set of guiding principles to inform model legislation for compostable product labeling. The working group agreed that distinguishing elements such as coloring and certification marks should be used.

A study jointly conducted by BPI and the Composting Consortium at Closed Loop Partners (with PepsiCo and Kraft Heinz as consortium partners) tested design combinations across 10 categories of compostable packaging products.

"Our research found that if packaging is made from biopolymers that look or feel like traditional plastic, green coloring can increase recognition of compostability by 20%," Paula Luu, senior program director at CLP's Center for the Circular Economy, said in an email. Using larger "compostable" label text and the BPI certification mark were also important elements in helping consumers identify compostable packaging.

Clearer labeling is one element in closing the consumer awareness gap. The study also found that among more than 2,700 U.S. respondents, nearly half struggled to distinguish between the terms "compostable" and "biodegradable." All compostable items are biodegradable, but for an item to be considered compostable, it must break down into non-toxic elements within a specific time frame.

Brands with sustainability goals (making packaging recyclable or compostable) are also affected by insufficient collection and processing of both traditional plastic and compostable packaging, as well as a lack of consumer education.

The study found that 28% of respondents would place compostable items in recycling bins, potentially contaminating recycling streams and making them costly to clean up. Additionally, one-third of respondents mistakenly placed items designed for industrial composting in home compost bins, whereas in most cases home compost temperatures are insufficient to effectively break down many food service items.

Some consumers in the survey also mistakenly believed that all compostable materials would break down in landfills. But landfills lack the required oxygen, moisture, and microorganisms, and organic waste is a significant source of methane in these sites. An analysis by the U.S. Environmental Protection Agency (EPA) found that 58% of fugitive methane emissions from municipal solid waste landfills come from food waste.

"If you compress things that tightly, with tons and tons of waste piled on top, it won't break down... Composting is a process, just like recycling," Cohen said, expressing concern that too much compostable packaging ends up in landfills. "Unless it's composted, all this packaging is just expensive trash."

Growing demand

As multiple trends drive compostable demand in the coming years, promoting these best practices will be crucial.

Surveys show that consumers have a positive attitude toward brands adopting compostable packaging. According to research cited in a Sustainable Packaging Coalition paper, 71% of millennials have a positive view of companies that use only compostable packaging, while another source cited in the paper found that 60% of surveyed consumers described compostable packaging as "very or extremely environmentally friendly."

Regulatory pressure is another factor driving the move away from hard-to-recycle packaging materials. Kachook noted that states such as Washington, Vermont, and California have required some form of food waste diversion through composting, which in turn could increase demand for compostable packaging. California's extended producer responsibility law is also an example of regulation that could drive growth in U.S. compostable packaging in the coming years.

More broadly, it remains unclear how prominent the compostable category will be in brand programs seeking to achieve voluntary sustainability goals or commitments.

"Many multinational food brands and retailers have commitments in this area," Davies said, "but progress is slow." He noted that in recycling, many items labeled recyclable are not actually recycled. "What we don't want to see is, a few years from now, a large number of items labeled compostable but not being composted."

Keurig Dr Pepper (KDP) is one company taking action. The company has committed to making all its packaging recyclable or compostable by 2025 and plans to launch a coffee capsule that is both home compostable and industrially compostable.

"We are making progress—the capsule under development at KDP has received TUV home compost and BPI industrial compost certification," a spokesperson said in an email. "The next step in our journey includes understanding the degradation potential of our capsules in a wide range of composting environments."

Other companies eager to demonstrate their commitment to compostable products include Walmart, which recently added compostable food service items under its Great Value brand to show customers that sustainable products can also be affordable. Compostable packaging companies TIPA and InstaBrew recently announced that their collaboration has so far brought 1 million compostable sachets to the ready-to-drink beverage market.

Demand from brands shifting to compostable packaging may also help producers scale up faster. Additionally, declining costs for some compostable products may soon make them a viable option for a broader range of companies.

Noyes reported in mid-October that Eco Montana has seen "significant price drops from one of our large manufacturers." This has allowed Eco Montana to keep prices low for customers. Noyes added that even before the price cuts, her company was growing, but it helps when compostable prices approach those of traditional plastic.

"We're seeing more and more new companies coming to us," she said. "They see other restaurants, food service providers, and others using it, and when they start their own business, they don't want to be the new company using plastic or foam."