The Promise and Pitfalls of Compostable Packaging

While compostable packaging offers promising circular sustainability for produce, widespread adoption remains constrained by higher costs and performance trade-offs.

Unsplash Onions.jpg
“While interest remains strong, higher packaging costs can make widespread adoption challenging, unless the benefits clearly justify the additional investment,” says Alysha Lowe of Sev-Rend.
(Photo: Unsplash)

Packaging is quickly becoming a top priority for the produce industry as pressure intensifies from government, retailers and consumers to implement solutions that are sustainable and environmentally friendly while still fulfilling their main task of protecting the product.

Compostable packaging is seen by many as an option to fill at least some of those requirements, but some see potential drawbacks as well.

A Case for Compostable Options

Compostable packaging has become a common offering across many packaging categories, including produce, foodservice, poly bags and others, says Olga Kachook, director of the Sustainable Packaging Coalition, Charlottesville, Va.

The primary advantage of compostable packaging is that it’s usually made with bio-based resources, which help reduce reliance on fossil fuel inputs, she says.

“When compostable packaging is composted alongside food scraps, it becomes part of a circular and typically local system of waste disposal and regeneration, contributing to compost as a finished product,” Kachook says.

Compostable packaging works for applications where there’s food residue or food waste that shouldn’t go into the recycling stream, she adds.

For example, if produce wilts or spoils, compostable packaging enables consumers or retailers to toss the packaging and its contents directly into the compost, eliminating the need for any rinsing or cleaning.

Commercially available compostable materials, including compostable mesh and flexible films, are used to make some of the custom produce packaging solutions from Collinsville, Ill.-based Sev-Rend, says Alysha Lowe, marketing specialist.

“We work closely with customers to evaluate material options and develop packaging designs that balance sustainability objectives with product protection, operational efficiency and overall cost considerations,” she says.

The company has offered compostable packaging solutions for more than five years as part of its commitment to provide customers with a range of sustainable packaging options, Lowe says.

The Price Factor

The cost of compostable packaging versus traditional materials can vary.

“This really depends on the specific product and application,” Kachook says.

When compostable packaging comes at a higher cost than traditional options, retailers and consumers may be less willing to pay for it.

Retailers generally are supportive of compostable packaging and its sustainability message, but they must balance sustainability goals with cost pressures, Lowe says.

“While interest remains strong, higher packaging costs can make widespread adoption challenging, unless the benefits clearly justify the additional investment,” she says.

Likewise, many consumers express a preference for more sustainable packaging, including compostable materials, but purchase decisions are often influenced by price, particularly in produce categories, she says.

“As a result, there can be a disconnect between consumer interest in sustainable packaging and a willingness to absorb the additional costs associated with compostable materials,” Lowe says.

Where Traditional Packaging Has an Edge

Compostable packaging has its advantages, she says, but there are some trade-offs.

“Compostable packaging offers an alternative end-of-life option when appropriate composting infrastructure exists, but it is often more expensive and can present performance challenges compared to traditional materials,” she says. “Traditional packaging generally provides better functionality, lower cost and greater scalability.”

Under the right conditions, traditional packaging can deliver “immediate and measurable sustainability benefits,” she says. “For many produce applications today, I believe these strategies offer a more practical sustainability solution than compostable packaging.”

Kachook says both types of packaging can have sustainability advantages, depending on the exact use case.

“The future of compostable packaging is really about sending less food waste to landfills, thereby reducing methane emissions,” she says. “As more municipalities support local composting programs to reduce the amount of food waste being sent to landfills, compostable packaging will have more disposal options, and we’ll be able to fully close the loop on these materials while creating beneficial compost.”

Compostable packaging has generated significant interest and may be well-suited for certain applications, Lowe agrees, but she thinks widespread adoption will continue to be constrained by economics and functionality.

“Unless there are major advances in material technology and broader composting infrastructure, I expect compostable packaging to remain a specialized solution rather than a dominant one over the next decade,” she says.

The Packer logo (567x120)
Related Stories
The Transfarmation Project has unveiled its second demonstration hub in Iowa, where the Faaborg family transformed a 30-year hog farming operation into a thriving specialty mushroom business.
By pairing electrolyte access with shade and rest, the upgraded rules give agricultural workers critical defense against chronic heat-related health risks.
Several deadlines set by California’s SB 54 — the Plastic Pollution Prevention and Packaging Producer Responsibility Act — have come and gone, but some producers impacted by the controversial legislation still question its feasibility.
Read Next
As summer market volatility forces growers to adjust harvest schedules and field acreage, industry leaders call on retailers to help share food safety facts and restore stability ahead of winter planting.
Get Daily News
GET MARKET ALERTS
Get News & Markets App