Compostable Packaging Is Finally Working: Here's What Changed in 5 Years

Compostable packaging acceptance has increased by 9% since 2023, driven by the largest field testing program of its kind in North America. A comprehensive five-year research initiative tested over 23,000 certified compostable packaging units across 10 commercial composting facilities, revealing that success depends not just on material design but on how composting facilities actually operate. The findings show that when design standards, facility readiness, and consumer education align, compostable packaging can meaningfully contribute to reducing food waste in landfills.

What Did the Largest Compostable Packaging Study Actually Test?

The Closed Loop Partners' Center for the Circular Economy launched the Composting Consortium to answer questions that had plagued the compostable packaging industry for years. Would composting facilities accept these materials? Could consumers identify and dispose of them correctly? And could composters manage them without taking on added contamination and cost? To find answers, researchers conducted the largest known singular field test of compostable packaging in North America.

The study tested more than 23,000 certified compostable packaging units across 10 commercial composting facilities and six different composting technologies. This wasn't a lab experiment; it was real-world testing under actual operating conditions. The scale and scope of the research provided a clearer picture of how materials perform across different processing methods, technologies, and timeframes. The Consortium then donated anonymized data to the Compostable Field Testing Program (CFTP), creating an open-source dataset that the entire sector can continue to build on.

Why Does Conventional Plastic Contamination Matter More Than You'd Think?

One of the most surprising findings from the research addressed a persistent problem facing composters: contamination. Across 10 composting sites, the study revealed that conventional plastics remain the leading source of contamination and cost, accounting for 21% of operating expenses. This means that non-compostable plastic bags and packaging mixed in with food waste and compostable materials create a significant financial burden for facilities trying to process organics responsibly.

The research also examined how labeling and design influence consumer behavior. The findings showed that consumers are significantly more likely to correctly identify compostable packaging when it uses clear, consistent visual cues. This insight has practical implications for manufacturers and municipalities working to reduce contamination at the source, before materials even reach composting facilities.

How to Support Compostable Packaging Systems in Your Community

  • Learn Your Local Facility's Rules: Contact your municipal composting program or commercial composting facility to confirm which compostable packaging they accept. Not all facilities process compostable materials, so knowing your local infrastructure is the first step.
  • Look for Clear Labeling: When purchasing food-contact items, choose products with clear, consistent compostable certification labels. Research shows consumers are more likely to dispose of these correctly when labeling is obvious and standardized.
  • Separate Conventional Plastics: Keep non-compostable plastic bags and packaging out of your food waste and compostable collection. Conventional plastic contamination is the leading cost driver for composters, so preventing it at home makes a measurable difference.
  • Advocate for Infrastructure Investment: Support municipal and community efforts to expand composting access. The Consortium's grant program helped expand organics recycling access to nearly 240,000 U.S. households, demonstrating that infrastructure investment directly increases participation.

What Real Progress Looks Like: The Numbers Behind the 9% Increase

The 9% increase in compostable packaging acceptance pathways represents tangible progress, but it came through deliberate infrastructure investment and collaboration. The Composting Consortium Grant Program, led in partnership with the Biodegradable Products Institute (BPI) and supported by the U.S. Composting Council (USCC), distributed $200,000 in funding to eight composter and municipal-led projects across the country. These projects weren't theoretical; they focused on helping facilities and communities improve infrastructure, integrate new approaches, and expand composting programs that include compostable packaging.

The impact was substantial. Collectively, these eight projects expanded organics recycling access to nearly 240,000 U.S. households, giving more than half a million people access to food waste and compostable packaging collection. This demonstrates that when municipalities invest in infrastructure and composters have the tools to process these materials, acceptance increases measurably.

Over five years, the Consortium engaged more than 50 partners across the entire value chain, including composters who opened their facilities to testing, municipalities willing to pilot new approaches, and brands and material innovators who remained engaged through technical, operational, and policy challenges. Industry organizations played an especially critical role in translating research into practical guidance.

What Still Needs to Happen for Compostable Packaging to Scale?

Despite the progress, challenges remain. Contamination from conventional plastics, uneven facility acceptance across regions, and consumer confusion continue to constrain recovery rates. The research reinforces that compostable packaging is most effective as part of a broader organics recovery strategy, one grounded in clear design standards, aligned policies, education, and facility readiness.

The key takeaway from five years of research is that progress in building a circular organics system depends on sustained collaboration, real-world testing, and a shared commitment to improving outcomes over time. The Closed Loop Center will continue this work by sharing practical insights through its knowledge hub, supporting implementation-focused research, and convening stakeholders to strengthen composting infrastructure nationwide. For consumers, this means that compostable packaging works best when your local composting facility accepts it, when labeling is clear, and when conventional plastic contamination is minimized at the source.