Compostable confusion: Study finds unclear packaging labels impeding US circular economy

12 Jul 2023 --- US consumers are failing to correctly dispose of compostable packaging due to ineffective on-pack labels, even when they have home access to curbside organic collections. Closed Loop Partners is urging policymakers to establish consistent and distinguishable labeling standards to boost the circular economy in light of its new study’s revelations. 

Launched in partnership with the Biodegradable Products Institute, the study found that up to half of respondents are confused by look-alike packaging made of non-compostable materials and how to distinguish between packaging labeled “biodegradable” and “compostable.”

Nearly a third of respondents said they have incorrectly placed compostable packaging in the recycling bin, leading to material cross-contamination. Moreover, in regions like the country’s West where people are nearly twice as likely than average Americans to have access to residential curbside composting, respondents still mistakenly believed they could place compostable packaging in the recycling bin.

The recycling confusion has arisen despite the increasing popularity of compostables in restaurants, which has been spurred by some local municipalities banning single-use petrochemical plastic foodware.

Closed Loop Partners points to limited publicly available data on US consumer perceptions of compostable packaging design and labeling as a core problem that its report addresses.Increase in compostable identification based on varying uses of color (Image credit: Closed Loop Partners).

Labels and other challenges
According to the New York-based investment firm, the use of multiple prominent labels is vital to improving consumer recycling behavior.

The study found that utilizing two or three design elements that communicate compostability on food-contact compostable packaging was most effective for consumer comprehension. A trusted certification logo and larger “compostable” call out increased consumers’ ability to identify a package as compostable by up to 22%.

The report also encourages policymakers to ensure products marketed as “made from plants” have qualifier language to indicate to consumers whether packaging is recyclable or compostable.

But packaging and label design is only one aspect of what’s required to support the circular economy for compostables, explains Paula Luu, senior project director at Closed Loop Partners’ Center for the Circular Economy.

“Convenient access to composting disposal options, consumer education, clear and consistent design of compostable packaging, clear signage on disposal bins, and accessible and frictionless consumer experiences all support circularity outcomes,” she tells Packaging Insights.

Meanwhile, the report calls on policymakers to require independent third-party verification for compostable products and advocate for federal trade commission “green guides” and policy language.Increase in identification of compostability with a large prominent “compostable” call out (Image credit: Closed Loop Partners).

Limited composting infrastructure
Closed Loop Partners highlights that the rapid growth of compostable packaging is not matched with similar growth in food waste composting infrastructure, noting that only 2% of US composting infrastructure accept and process food-contact compostable packaging.

At the same time, compostable packaging that mistakenly ends up in recycling streams loses a significant portion of its value and creates a contamination challenge that impedes the recovery of valuable materials.

“Compostable packaging and its role in the packaging ecosystem is relevant to policymakers because compostable packaging is one solution that may help increase the diversion of food scraps from landfills,” continues Luu.

“Trucking food waste to landfills costs taxpayers money, undermines municipal zero waste goals and leads to more GHG emissions from landfills.”

“This study was one of ten projects that the Composting Consortium is undertaking to better align upstream manufacturing with downstream processing realities and craft an investment roadmap for the US composting industry that strengthens the recovery of food-contact compostable packaging and food scraps.”

Closed Loop Partners also urges policymakers to require independent third-party verification for compostable products while stressing the need for improved sortation technology for haulers and composting facilities.

In other news, a recent study found that synthetic textiles, including “compostable” plastics like polylactic acid (PLA), do not degrade after more than a year in the ocean. But the bioplastics industry dismissed the findings, pointing out that the fashion industry does not use PLA because it is “compostable.”

By Joshua Poole