Tipa targets flexible plastics disruption after scoring US$70M compostable tech funding

06 Jan 2022 --- Israeli compostable packaging specialist Tipa has landed US$70 million in a series C round funding in what it says will bring “breakthrough technology” to the world stage.

Speaking to PackagingInsights, Julia Schifter, Tipa’s vice president of strategy analysis, says the investments – which were led by Millennium Food-Tech and Meitav Dash, who invested together US$30 million – now make the company a “world leader” in compostable packaging. 

“The funds will be used to expand business and operations in all the key territories that Tipa already operates in, such as Europe, North America and Australia, as well as to expand into new markets and support new product launches,” she says. 

“This [expansion] will encompass some of the key application segments in flexible food packaging such as snack food, confectionery, coffee, cheese and meat. Funds will also be utilized to expand on strategic partnerships with key players in our supply chain.” 

Julia Schifter, Tipa’s VP of strategy analysis.Fighting flexible pollution 
Tipa aims to tackle flexible plastic pollution around the globe – a market estimated to be worth US$103 billion – by creating materials that can match the performance of virgin plastics but biodegrade or compost naturally. 

Currently, just 4% of flexible plastics are recycled each year while contributing around 70% of ocean plastic pollution globally, according to Tipa. 

“Our encounter with plastic packaging waste in our everyday lives has become a constant alarming reminder of the crisis we face as humanity. New solutions that move beyond plastic and beyond the failure of the recycling industry are required to solve this crisis,” says Daphna Nissenbaum, Tipa’s CEO. 

“In recent years, we have witnessed a sharp increase in the demand for [environmentally] sustainable packaging solutions from consumers, while compostable packaging solutions repeatedly are ranked as the first choice of consumers around the globe.” 

Moreover, A Tipa-commissioned review from 2021 found “landslide expert support” for compostable packaging across the EU to reduce plastic contamination in organic waste streams and increase the amount of food waste captured for recycling.

Next-generation of compostables 
An example of compostable Tipa packaging used for cereal.Schifter says Tipa’s products’ key environmental sustainability feature is their ability to integrate with the collection and treatment of food waste and, once composted, return to nature as a soil nutrient. 

“One of the main developments in our upcoming new generation of products is a full range of packaging solutions suitable for either home, community, or industrial composting so our customers have multiple options for what to do with our packages post-usage.”

“Renewable content in our new line of products will also increase to over 60%,” she adds. 

These developments are being recognized by industry. Foreseeing a “massive growth in the market demand for compostable packaging to replace hard-to-recycle plastics,” multiple brands and retailers in the food and fashion industries have already adopted Tipa’s solutions. 

This includes Waitrose, Woolworth, Riverford Organic Farmers, Pangaia, and Scotch & Soda.

TIPA also recently signed a partnership agreement with Amcor, reportedly the world’s largest plastic packaging manufacturer. The partnership aims to provide compostable packaging solutions to the Australian and New Zealand markets. 

Flexing plastic policy 
Despite compostable innovation and investments, companies like Tipa face regulatory hurdles in bringing products to market. 

Last year, a UK consultation warned of miscommunication over packaging purporting to be compostable and the dangers of increased pollution resulting from consumer confusion. 

Biodegradability depends on environmental conditions such as temperature, humidity, microorganisms present, and oxygen. According to the consultation, these materials have a “limited but valid role” in applications where conventional plastic is typically too contaminated to be reused or recycled. 

However, Schifter says growing awareness of the benefits of compostable packaging is encouraging lawmakers to tighten accurate communication and help expand the market. 

“Compostable packaging is new to legislators around the world. Yet, in multiple countries, including China, Chile, France, Italy and India, legislators are already either proactively supporting compostable packaging or are looking at supportive tools that will allow this new industry to flourish and offer a viable solution to some of the key hard-to-recycle plastics,” she says.

“We expect to see more legislators around the world support compostable packaging in their fight against the plastic pollution crisis.” 

By Louis Gore-Langton