Compostable packaging proliferates but infrastructural and regulatory limitations must be overcome, say suppliers

29 Jun 2022 --- Compostable packaging demand is growing rapidly, but improved collection and recycling infrastructure and clearer product labeling are required to support the market’s expansion and enhance cost-competitiveness.

A principal advantage of compostable packaging is its end-of-life performance, offering both recyclability and compostability, while it will break down naturally over time if improperly discarded. Compostable packaging also addresses the issue of contamination from food residue, which can make more conventional packaging difficult or impossible to recycle.

According to Innova Market Insights, food and beverage launches with compostable claims have grown 49% on average since 2018. Meanwhile, 28% of global consumers perceive biodegradable or compostable packaging as the most environmentally sustainable packaging option, followed by reusable (22%) and recyclable (21%) packaging.

We take a closer look at compostable packaging and the barriers to further growth with Channing Nuss, director of corporate affairs at Transcend Packaging, and Merav Koren, chief marketing officer at Tipa.

Infrastructural limitations
Compostable packaging mimics the positive properties of conventional plastic packaging, such as moisture and oxygen barrier, shelf life, lightweight design and flexibility, but its built-in circularity potential is limited by lacking collection and recycling infrastructure.

“We have seen a large uptake in demand for our compostable packaging solutions and will continue to increase our production capacity to meet this demand. However, one of the main barriers the industry faces is the need to see modifications in the overall collection infrastructure across the UK and EU to make sure compostable solutions exist within an ecosystem where they can be composted at scale,” Nuss tells PackagingInsights.

“In the UK and EU, there are wide differences in how items are collected and processed between various jurisdictions. Some element of harmonization of collection infrastructures will need to occur to achieve higher levels of utilization for compostable packaging.”

Transcend creates recyclable and compostable fiber-based packaging, including cartons, takeaway food packaging, cups, lids and straws, working with a number of high-profile brands. Nuss says there is a lot of innovation in this space, as digital printing for cartons and cups is reducing minimum order quantities and specialty paper coatings are emerging to provide a viable alternative to plastic barrier coatings in many applications.Transcend creates recyclable and compostable fiber-based packaging.

Regulatory recognition
Meanwhile, investment in compostable packaging collection and recycling infrastructure would be improved with clearer regulatory support. Pending or implemented legislation in the UK and EU, notably the UK Plastic Packaging Tax, Extended Producer Responsibility and revisions to the EU Packaging and Packaging Waste Directive, are expected to drive significant change in how items are packaged, collected, recycled or composted.

“All regulators are required to legislate and regulate the issue of plastic waste, including in the field of packaging. Unfortunately, there is no silver bullet answer, and a specific solution is required for each specific plastic product,” explains Koren.

“When no valid recycling solution is found, there is a place for a compostable solution, which the regulators are trying to incorporate. Each country treats the issue of compostable packaging with different tolerance, and there is no doubt that there is a long way to go when it comes to regulating end-of-life solutions.”

An important component that must be incorporated into new regulatory frameworks is a recognition of the advantages of compostability with appropriate infrastructure investments to support its scalability.

“Within Europe, for example, there are wide divergences in infrastructure between various member states and this will have to be improved to realize the advantages of compostability within the structure of a common regulatory framework,” says Nuss.Tipa’s long-term plan is to continue providing solutions that meet mass-market needs. 

Consumer engagement
Additionally, product labeling must be enhanced so consumers and collection services can more easily identify what items are compostable and to what standard.

“Labeling can help unlock the potential of barrier coating innovation so that it will be possible to know that a product is compostable even though it may be similar in appearance and performance to a product that is not. If it’s not clear whether packaging can be composted, it is likely individuals will discard it in their regular waste stream,” notes Nuss.

Meanwhile, consumer education remains important, as there is still limited knowledge within the public about the potential upside and proper disposal of compostable packaging.

“A confusing conversation is taking place around the plastic crisis and the different solutions offered. Educating the general public, brands and governments on valid solutions versus misleading and even harmful products offered by various parties is key for the compostable industry,” stresses Koren.

“Like any breakthrough technology, the price of compostable packaging versus conventional plastic packaging is more expensive. The dramatic increase in raw material costs and supply chain elements are affecting our industry. Like in any growing and evolving field, these costs will drop further down the road and will come into balance with the market,” she adds.

Transcend says it has replaced “billions of plastic straws” with its compostable alternative. Innovation in compostables
Tipa’s breakthrough packaging has the same end-of-life as organic matter while offering the durability, transparency, and shelf life consumers and brands expect from conventional plastic. Its single-ply films and multi-ply laminates, available as reels of film or made-to-order customized packaging, serve numerous segments, ranging from fresh produce and snacks to fashion and apparel.

“We think it’s important that our compostable packaging solutions are built to fit existing machinery and chain of supply systems, and that allows us to operate on a global scale with compostable polymer technology that is applicable worldwide,” says Koren.

“We’re partnering with manufacturers from around the world to provide fully compostable solutions for mass-market, and part of Tipa’s long-term plan is to continue to provide solutions that meet mass-market needs with our growing portfolio.”

The company’s films and laminates are certified as fully home or industrially compostable and break down in compost environments into water, CO2 and biomass within 180 days like any other organic matter. Its packaging is made from proprietary blends of fully compostable polymers that are both bio-based (between 20-80%) and fully compostable fossil-based polymers.

Meanwhile, Transcend plans to enhance its compostable product portfolio further and commercialize new coating technology with its partners.

“We have already seen what this can do at scale, as we have been able to replace billions of plastic straws that might otherwise go unrecycled with a paper alternative, further illustrating the nature of change that is possible. The convergence of brand choices on environmental sustainability, consumer preference and regulatory initiative is going to drive significant innovation in packaging in the years ahead,” concludes Nuss.

By Joshua Poole