An old acquaintance in a new guise.

While the first generations of bioplastics often faced limitations in terms of material performance, cost, and disposal options, the market has since evolved significantly. Today, new materials based on natural polymers, plant-based residues, or agricultural byproducts aim not only to replace fossil-based plastics but also to return packaging to natural cycles.

Image source: Traceless

Traceless’s approach highlights an important trend within the industry: The focus is increasingly shifting away from traditional bioplastics—which are often still based on chemically modified polymers—toward materials that are more closely linked to natural material cycles. At the same time, scaling up remains one of the biggest challenges. Many innovative materials already perform very well in the lab or in pilot projects, but they still need to prove themselves on an industrial scale in terms of production volume, cost, availability, and consistent quality. The opening of a larger production facility in Hamburg shows that the first companies are now taking this step.

Companies to watch:

From a regulatory perspective, too, the framework for compostable packaging is undergoing fundamental changes. With the new European Packaging and Packaging Waste Regulation (PPWR), the focus is no longer solely on a material’s biodegradability, but on the overall recyclability of packaging. The regulation sets clear requirements for recyclability, material use, and labeling. Compostable packaging remains a niche solution for specific applications, particularly where recycling is difficult or impractical.

This development is crucial, as compostability is not automatically synonymous with sustainability. Packaging that is theoretically biodegradable requires specific conditions and an appropriate disposal method to achieve this. While industrially compostable materials can function in suitable facilities, much packaging still ends up in residual waste or in the wrong waste streams. At the same time, composite materials, barriers, or additives can affect compostability. The future will therefore lie less in a one-size-fits-all solution and more in material-specific concepts that are precisely tailored to the respective application.

For this reason, compostable packaging materials must currently be evaluated on a case-by-case basis. For short-term applications such as certain types of food packaging, organic waste bags, or products with high levels of contamination, they can make a meaningful contribution. Materials made from waste residues that do not compete with food resources and can be returned to biological cycles in a controlled manner after use are of particular interest.

However, compostable materials will not yet be ready to fully replace conventional plastics by 2026. They often still lack the performance, infrastructure, and economic competitiveness needed to replace traditional plastics in all applications. Their future therefore likely lies not in a blanket replacement of plastic, but in a targeted complement to a broader packaging system that includes recycling, reusable packaging, and innovative bio-based materials.