Interview: practitioners on Plant-based & compostable packaging — what they wish they knew earlier

In 2024, the European compostable packaging market reached €2.1 billion, yet practitioners across the continent report that only 31% of certified compostable packaging actually reaches industrial composting facilities. This stark gap between material innovation and real-world infrastructure reveals what seasoned sustainability engineers call the "compostability paradox"—where technically superior solutions fail at the system level. We spoke with packaging engineers, sustainability directors, and waste management specialists across Europe to uncover the implementation trade-offs, stakeholder incentives, and hidden bottlenecks that determine whether plant-based packaging succeeds or languishes in landfills.

Why It Matters

The European Union's Packaging and Packaging Waste Regulation (PPWR), adopted in late 2024, mandates that all packaging placed on the EU market must be recyclable or compostable by 2030. This regulatory pressure, combined with consumer demand—73% of European consumers express preference for sustainable packaging according to a 2024 Eurobarometer survey—has accelerated the transition toward plant-based alternatives. However, the gap between regulatory ambition and operational reality remains significant.

In 2025, the European bioplastics market is projected to grow by 14% year-over-year, with compostable materials comprising approximately 38% of total bioplastic production capacity. Germany, Italy, and France collectively account for 62% of Europe's industrial composting infrastructure, creating significant regional disparities in end-of-life processing capabilities. The European Bioplastics Association reports that production capacity for PLA (polylactic acid) and PHA (polyhydroxyalkanoates) has increased by 127% since 2020, yet composting infrastructure has grown by only 23% during the same period.

"The materials science has outpaced the systems science," explains one packaging director at a major European FMCG company. "We can formulate extraordinary plant-based materials, but we've underinvested in the collection, sorting, and processing infrastructure that actually closes the loop."

This infrastructure mismatch creates what practitioners describe as "stranded assets"—significant capital investments in compostable packaging that cannot deliver their intended environmental benefits. For European businesses navigating the PPWR requirements, understanding these systemic bottlenecks is essential for making sound transition decisions.

Key Concepts

Plant-based Materials: Packaging derived from renewable biological resources including corn starch, sugarcane bagasse, cellulose, and agricultural residues. These materials may or may not be compostable depending on formulation and processing. European standards distinguish between "bio-based" (origin) and "biodegradable" (end-of-life), a distinction practitioners emphasize as critical for procurement decisions.

Regenerative Feedstock Sourcing: A procurement approach that prioritizes agricultural inputs from farming systems that actively restore soil health, sequester carbon, and enhance biodiversity. European pioneers are moving beyond "sustainable" sourcing toward feedstocks from verified regenerative agriculture programs, though certification frameworks remain fragmented across member states.

Transition Plan Architecture: The strategic framework guiding an organization's shift from conventional to sustainable packaging. Effective transition plans address material substitution timelines, supplier development, infrastructure dependencies, and stakeholder communication. Practitioners report that plans typically require 3-5 year horizons to account for tooling amortization and supply chain reconfiguration.

Unit Economics Analysis: The granular cost evaluation comparing total cost of ownership between conventional and compostable packaging options. This analysis must incorporate material premiums (typically 15-40% higher for compostables), processing adjustments, logistics modifications, and end-of-life costs or savings. European practitioners increasingly include shadow carbon pricing to reflect anticipated regulatory costs.

Life Cycle Assessment (LCA): The systematic evaluation of environmental impacts across a product's entire life cycle, from raw material extraction through end-of-life processing. ISO 14040/14044 standards govern LCA methodology, while the EU Product Environmental Footprint (PEF) framework provides sector-specific guidance. Practitioners caution that LCA results vary dramatically based on end-of-life assumptions—the same material can show positive or negative environmental outcomes depending on actual disposal pathways.

Industrial Composting Standards: The EN 13432 standard defines compostability requirements for packaging in Europe, specifying disintegration (90% within 12 weeks), biodegradation (90% within 6 months), and eco-toxicity thresholds. TUV Austria and DIN CERTCO provide certification services, with the "Seedling" logo indicating EN 13432 compliance. Critically, home compostability requires separate certification under standards such as OK Compost HOME, as industrial and home composting conditions differ substantially.

What's Working and What Isn't

What's Working

Closed-Loop Systems in Controlled Environments: Practitioners report highest success rates in venues with controlled waste streams—stadiums, airports, corporate campuses, and quick-service restaurants with managed dining areas. The Johan Cruijff Arena in Amsterdam achieved 89% diversion of compostable food service ware in 2024 through dedicated collection infrastructure and on-site composting partnerships. "When you control the entire system from serving to sorting, compostables work beautifully," notes a waste management consultant who designed the Arena's system. Similar success stories emerge from Copenhagen Airport and Munich's Allianz Arena.

Integrated Retailer-Composter Partnerships: Forward-thinking retailers are establishing direct relationships with industrial composting facilities, bypassing fragmented municipal waste systems. The collaboration between Carrefour France and the composting network Moulinot demonstrates this model, achieving 94% correct sorting rates for fresh produce packaging through combined labeling innovation and dedicated collection logistics. These partnerships work because they align economic incentives—retailers secure reliable end-of-life pathways while composters receive consistent, clean feedstock.

National Policy-Infrastructure Alignment: Italy's longstanding plastic bag ban and mandatory compostable carrier requirement, combined with extensive municipal bio-waste collection (covering 79% of the population as of 2024), creates conditions where compostable packaging functions as intended. Italian practitioners report that regulatory consistency, consumer familiarity, and processing infrastructure have co-evolved over 15 years to create genuine circularity. Austria's bio-waste collection mandate, which became fully operational in 2024, is replicating elements of this approach.

What Isn't Working

Contamination in Comingled Waste Streams: The most frequently cited failure mode involves compostable packaging entering conventional recycling streams, where it contaminates recyclable materials and is ultimately landfilled or incinerated. European recyclers report rejecting bales containing >2% compostable contamination, as PLA and conventional PET are visually indistinguishable but chemically incompatible. One German recycler described compostables as "the single biggest threat to recycling quality we've seen in the past decade." Without reliable sorting technology—currently achieving only 67% accuracy in mixed-stream environments—this contamination problem persists.

Home Composting Performance Gaps: Materials certified for industrial composting frequently fail to decompose in home composting conditions, where temperatures typically range from 20-35°C rather than the 55-70°C achieved in industrial facilities. A 2024 study published in the journal Resources, Conservation and Recycling found that 78% of EN 13432-certified packaging showed incomplete degradation after 12 months in simulated home composting conditions. Practitioners describe widespread consumer confusion and disappointment when "compostable" packaging persists in garden compost bins.

Economic Viability Without EPR Support: The 15-40% material cost premium for compostable packaging makes the business case difficult without Extended Producer Responsibility (EPR) fee modulation that rewards sustainable choices. While France's EPR system now provides up to 20% fee reductions for compostable packaging, most European EPR schemes treat compostables identically to conventional materials. "Until the economics work at scale, we're relying on brand owners to absorb costs that consumers won't pay for," observes a sustainability director at a major packaging converter.

Key Players

Established Leaders

Novamont (Italy): The European leader in biodegradable and compostable bioplastics, Novamont produces Mater-Bi, a family of bio-based materials used across food packaging, agriculture, and retail applications. Their integrated approach spans R&D through composting partnerships, with annual production exceeding 150,000 tonnes.

BASF (Germany): Through its ecovio and ecoflex product lines, BASF provides certified compostable polymers for flexible packaging applications. Their collaboration with major brand owners and focus on industrial-scale production has established significant European market presence.

TotalEnergies Corbion (Netherlands): A joint venture producing Luminy PLA resins, TotalEnergies Corbion operates Europe's largest PLA production facility in Thailand while maintaining European R&D and market development operations. Their high-heat PLA grades address key performance limitations.

Stora Enso (Finland): This forest products company has pivoted toward renewable packaging materials, offering formed fiber solutions and bio-based barrier coatings. Their Trayforma product line provides compostable alternatives for fresh food applications.

Huhtamaki (Finland): A global foodservice packaging leader, Huhtamaki has invested heavily in fiber-based and compostable solutions through its Fresh product category, with European manufacturing facilities in Germany, the UK, and Finland.

Emerging Startups

Notpla (UK): This London-based startup produces seaweed-based packaging that biodegrades in weeks rather than months. Their Ooho sachets and Notpla Coating have secured partnerships with Just Eat, Lucozade, and Heinz, demonstrating food-grade performance with genuine home compostability.

Traceless Materials (Germany): Spun out of Hamburg University of Technology, Traceless produces bio-based granules from agricultural residues that biodegrade in unmanaged environments. Their 2024 Series A funding enables scaling toward commercial production volumes.

Lactips (France): Specializing in water-soluble, biodegradable films derived from milk protein, Lactips targets applications including dissolvable sachets and protective packaging where complete environmental degradation is essential.

Sulapac (Finland): This Helsinki startup produces beautiful, wood-based alternatives to plastic for premium packaging applications. Their patented materials combine Nordic wood chips with natural binders, achieving certified compostability with aesthetic properties suitable for cosmetics and luxury goods.

PulPac (Sweden): PulPac's Dry Molded Fiber technology enables high-speed manufacturing of fiber-based packaging from cellulose pulp, matching plastic production speeds at competitive costs. Their licensing model has attracted major CPG partners including Nestlé and PepsiCo.

Key Investors & Funders

European Investment Bank (EIB): Through its Circular Economy Initiative, the EIB has committed €10 billion to projects supporting the transition to circular materials, including significant investments in bio-based packaging infrastructure and manufacturing capacity.

Horizon Europe: The EU's flagship research funding program allocates substantial resources to bio-based and biodegradable packaging innovation through its Cluster 6 (Food, Bioeconomy, Natural Resources) work programmes, with €350 million committed through 2027.

Circularity Capital (UK): This Edinburgh-based growth equity fund specializes in circular economy businesses, with portfolio companies including packaging innovators and waste processing technology developers.

SYSTEMIQ (UK/Netherlands): This systems-change company combines investment, advisory, and ventures to accelerate transitions in materials systems. Their plastics initiative supports early-stage compostable packaging ventures alongside infrastructure development.

SKion (Germany): The investment company of the Quandt family has made substantial commitments to sustainable materials companies, including significant stakes in bioplastics producers and circular economy infrastructure developers.

Examples

1. Migros Bio-Waste Integration (Switzerland): Switzerland's largest retailer implemented a comprehensive compostable packaging strategy across 600+ stores, investing CHF 45 million in coordinated material substitution and collection infrastructure between 2022-2024. Fresh produce trays, fruit labels, and bakery bags transitioned to certified compostable materials, while dedicated collection points in stores feed directly into the country's extensive industrial composting network. Results: 23,000 tonnes of compostable packaging diverted from incineration annually, with measured consumer sorting accuracy of 87% at in-store collection points. The initiative reduced the company's packaging-related carbon footprint by 12% while maintaining cost neutrality through EPR credits and avoided disposal fees.

2. BIOREGIO Nantes Pilot (France): This public-private partnership established a closed-loop system for foodservice packaging across the Nantes metropolitan area's 200+ school canteens and municipal facilities. The project deployed locally-sourced agricultural residue-based packaging from regional producers, connected to the Loire Valley's expanding industrial composting infrastructure. Between 2023-2025, the initiative processed 4,500 tonnes of compostable foodservice ware, producing certified compost now used in municipal landscaping. Unit economics achieved parity with conventional disposables by year two through volume aggregation and municipal waste cost avoidance. The model is now being replicated across 12 additional French metropolitan areas.

3. Danone Waters UK Transition (United Kingdom): Danone's Evian and Volvic brands piloted compostable shrink-wrap for multi-pack water bottles across UK retail distribution, replacing 2,800 tonnes annually of conventional LDPE film. The project required reformulating existing compostable films to achieve equivalent moisture barrier and stacking strength, a 14-month development process with material supplier Novamont. Partnership with Biffa Waste Services established dedicated collection from major retailers, feeding certified industrial composting facilities. Environmental LCA documented 34% reduction in packaging-related carbon emissions. However, the pilot revealed that <40% of material reached composting—the remainder entered recycling streams (causing contamination) or residual waste. The insight drove investment in enhanced labeling and retailer education for subsequent rollout phases.

Action Checklist

• Conduct a comprehensive material audit identifying packaging applications suited for compostable substitution, prioritizing controlled-environment and foodservice applications where collection can be managed
• Map regional composting infrastructure within a 200km radius of major distribution points, identifying capacity, accepted materials, and certification requirements
• Engage with EPR scheme operators to understand current and planned fee modulation for compostable packaging in target markets
• Develop supplier qualification criteria that include feedstock traceability, EN 13432 certification, and ideally OK Compost HOME certification for consumer applications
• Commission or review LCA studies using realistic end-of-life scenarios based on actual regional infrastructure, not theoretical composting rates
• Establish pilot programs in controlled environments (corporate facilities, event venues, partner retail locations) before broader rollout
• Design labeling and consumer communication strategies that clearly distinguish home-compostable from industrial-compostable materials
• Build direct relationships with composting facility operators to ensure material acceptance and troubleshoot contamination issues
• Develop contingency plans for materials that enter incorrect waste streams, including recycler engagement to minimize contamination impacts
• Establish monitoring and measurement protocols to track actual end-of-life outcomes, not just material sold

FAQ

Q: How do we navigate the cost premium for compostable packaging when consumer willingness to pay remains limited? A: Practitioners recommend a portfolio approach rather than wholesale substitution. Prioritize applications where compostables deliver clear performance benefits (food contact safety, grease resistance), where regulatory requirements create level playing fields, or where EPR fee structures provide economic offset. Volume aggregation through industry consortia can also improve purchasing power. Many companies absorb modest premiums in high-visibility applications while optimizing conventional materials elsewhere—the key is honest assessment of where compostables genuinely outperform rather than aspirational across-the-board substitution.

Q: What's the realistic timeline for transitioning a product line to compostable packaging? A: Based on practitioner experience, expect 18-36 months from initial assessment to commercial launch. This includes 3-6 months for material qualification, 6-12 months for tooling and process adaptation, and 6-12 months for supply chain integration and regulatory approvals. Transitions requiring new production equipment or significant supplier development may extend to 48 months. The critical dependency is often not the packaging itself but ensuring viable end-of-life pathways exist in target markets before launch.

Q: Should we pursue home-compostable or industrial-compostable certification? A: This depends entirely on your products' disposal context. For retail food products consumed at home in markets with limited industrial composting access, home-compostable certification (OK Compost HOME) provides genuine environmental benefit. However, home-compostable materials typically offer narrower processing windows and reduced barrier properties. For foodservice, event, and institutional applications where waste can be channeled to industrial facilities, EN 13432 industrial certification suffices and enables broader material options. The worst outcome is industrial-only certification for products consumed domestically—this creates consumer confusion and contaminated waste streams.

Q: How do we address contamination concerns from recyclers who view compostables as problematic? A: This requires proactive engagement and honest acknowledgment of the problem. Invest in distinguishable material aesthetics (color, texture) that enable visual sorting. Support development of near-infrared sorting technology optimized for PLA/PET discrimination. Most importantly, avoid applications where compostable and conventional packaging are functionally interchangeable and likely to be mixed—this creates intractable sorting challenges. Some practitioners argue for mandatory pigmentation standards that would make compostables visually distinct, though no European regulation currently requires this.

Q: What role should carbon credits or insetting play in our compostable packaging strategy? A: Carbon accounting for compostable packaging remains methodologically contested. While bio-based materials incorporate atmospheric carbon during feedstock growth, end-of-life emissions depend critically on disposal pathway—composting releases CO2 while landfilling may generate methane. Leading practitioners focus on verified emission reductions through LCA rather than pursuing credits, as carbon market methodologies for packaging remain immature. Where insetting is pursued, ensure rigorous attribution between packaging choices and genuine emission reductions, and avoid double-counting with supplier claims.

Sources

• European Bioplastics Association, "Bioplastics Market Data 2024," December 2024
• European Commission, "Packaging and Packaging Waste Regulation (PPWR) Impact Assessment," 2024
• Eurobarometer, "Attitudes of European Citizens Towards the Environment," Special Eurobarometer 553, March 2024
• Ruggero, F., et al., "Home composting of bioplastics: A critical review," Resources, Conservation and Recycling, Volume 198, 2024
• TUV Austria, "OK Compost Certification Scheme Technical Requirements," 2024 Edition
• European Environment Agency, "Bio-waste Management in Europe: Challenges and Opportunities," EEA Report No. 04/2024
• Nova-Institute, "Bio-based Building Blocks and Polymers: Global Capacities, Production, and Applications," 2025 Update