Scaling US compostable packaging systems: Fighting contamination through labeling and investment

18 Jul 2024 --- Compostable packaging streams in the US are widely contaminated by look-alike single-use plastics, hindering the expansion of infrastructure and mitigation of the industry’s environmental footprint, according to a new report by Closed Loop Partners (CLP). The findings also show that confusion over the effectiveness of compostable packaging designs leads many industrial composters to categorically reject waste.

The report, titled “Unleashing the Economic and Environmental Potential for Food Waste Composting in the US,” presents composting as a powerful solution for diverting waste from landfills and helping unlock the US$4.5 trillion growth potential estimated by the World Economic Forum for a circular economy by 2030.  

However, major barriers are preventing the adoption of composting infrastructure, including critical failures in packaging development. Paula Luu, senior project director at the Center for the Circular Economy, CLP, tells Packaging Insights it is essential for the industry to understand the magnitude of packaging contamination in composting streams. 

Roughly 80% of all contamination in industrial composts is caused by conventional plastics by volume, and composters spend nearly a quarter of their operational costs on managing contamination.

“For compostable packaging to reach its full potential as a circular packaging solution, consistent labeling and design that differentiates compostable and non-compostable packaging further upstream is critical — along with packaging formulations that work with a diversity of composting technologies and policies that incentivize robust composting infrastructure to process these materials,” says Luu. 

According to BioCycle data, most full-scale food waste composting facilities also accept some form of compostable packaging.Driving packaging away from landfill
Compostable packaging designs are on the rise throughout the US, states the report. Simultaneous to this growth is the evolution of US composting infrastructure. 

“The US currently has roughly 3,000 compost facilities that still only process yard waste — meaning, no food waste — however, we are seeing a slowly growing number of full-scale composters who do accept food waste — roughly 200 facilities across the country that service municipalities and commercial businesses,” explains Luu. 

“We are also seeing many more compost facilities that may process food waste at university campuses, on-farm or on some other type of campus — such as correctional facilities and corporate campuses.” 

Seventy-one percent of the US’ 200 facilities accept and process some forms of food-contact compostable packaging — a 13% increase in the number of facilities that accept compostable packaging since 2018, shows the report. 

“So we are seeing an upward trend in acceptance on the infrastructure side, which is being driven by a combination of food waste bans and other organics mandates,” continues Luu. 

“New types of policies, like state-wide extended producer responsibility (EPR), are also creating potential funding sources to support the scale-up of compost facilities that accept these materials. We’re still in the early days of setting up EPR plans, and the Composting Consortium has created policy briefs on the topic of how to think about EPR to support this infrastructure.” 

Acceptance challenges 
Despite these advances, there are varying levels of acceptance among the 141 composters who reported they accept compostable packaging. Across all facilities, food-soiled paper and pizza boxes are the most common types of food-contact compostable packaging accepted (117 facilities). 

This precedes certified compostable liner bags (93 facilities), which are commonly used for collecting food waste and lining organics bins. The report notes that some facilities only accept certain materials (like fiber packaging), which makes the acceptance landscape patchy and difficult to track. 

These issues are compounded by a lack of consumer understanding and adequate disposal behavior. Consumer education is needed to combat confusion and boost curbside collection.

CLP’s joint consumer study with the Biodegradable Products Institute, which surveyed 2,765 US respondents, showed 28% of respondents place compostable packaging in the recycling bin, and roughly half thought “made from plants” labeling meant compostable.

“This is concerning for brands who are using plant-based PET and PE, as these materials cannot be composted,” says Luu. 

To tackle these problems, consistent and clear labeling is needed, she says. “We should only allow certified food-contact compostable products to be labeled ‘compostable’ on the packaging.” 

“Composters who accept compostable packaging are advocating for only certified and tested compostable packaging to enter the organics stream. Biodegradable labeling also confuses consumers — it doesn’t always belong in the compost bin and can contribute to microplastics in the organics stream.” 

Win-win opportunity 
Policy is also critical to scaling composting infrastructure, Luu continues. “While blended capital offers a powerful tool to scale infrastructure, simplified and standardized permitting regulations, procurement policies, and state and federal policy can further support the compost industry’s growth.”

It can take a compost facility that only processes yard trimmings up to US$1 million dollars and five years to acquire the appropriate permits to process food waste. In some states like New Jersey, new food waste composting sites haven’t been established in years because of permitting challenges, she explains. 

“There’s a need for permitting reform to facilitate the setup of food waste composting sites across the US. It’s an issue the Composting Consortium has analyzed and we will continue to support innovation around this in the next two years of our work.” 

“We wrote this report with the current state of compostable packaging in mind, knowing that these food waste composting sites are critical for food-contact compostable packaging to be processed in the foreseeable future.” 

“Therefore, it’s in the interest of investors, brands and packaging manufacturers to also support and scale up food waste composting infrastructure that’s aligned to accept and process these materials. It’s a win-win opportunity, which mitigates climate change, scales end markets for compostable packaging, and produces finished products that benefit the planet and communities.” 

By Louis Gore-Langton