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Compostable packaging supports the transition to zero-waste, circular economies. Startups are redesigning traditional packaging with biodegradable materials and innovative formats that reduce environmental impact.
This article highlights 10 companies creating eco-friendly solutions for food, cosmetics, and e-commerce. Their innovations include mycelium-based structures, water-soluble films, compostable pouches, and sustainable mailers, meeting the demand for responsible end-of-life packaging.
Global Startup Heat Map highlights 10 Compostable Packaging Startups to Watch
Through the Big Data & Artificial Intelligence (AI)-powered StartUs Insights Discovery Platform, covering over 7M+ startups, 20K+ technology trends plus 150M+ patents, news articles & market reports, we identified 1900 compostable packaging startups.
The Global Startup Heat Map below highlights the 10 compostable packaging startups you should watch in 2025 as well as the geo-distribution of 1900+ startups & scaleups we analyzed for this research.
According to our data, we observe high startup activity in Western Europe and India, followed by the United States. The top 5 Startup Hubs for compostable packaging are London, Bangalore, New York City, Mumbai, and Los Angeles.
Discover Emerging Compostable Packaging Startups to Watch in 2025
We hand-picked startups to showcase in this report by filtering for their technology, founding year, location, funding, and other metrics.
These compostable packaging solutions range from food and beverage packaging to water-soluble and mycelium-based packaging.
- Biofuture – Food Packaging
- Mushee – Custom Molded Packaging
- Unbubble – Packing Peanuts
- PakItGreen – Eco-friendly Package Coatings
- Soyle – Packaging for Restaurants
- Rinse – Water-soluble Packaging for Cosmetics
- Planetpacks – Compostable Pouch
- L-ife – Mycelium-based Packaging
- Green Packaging Solutions – Beverage Packaging
- Mala Packaging – Compostable Mailers
1. Biofuture
- Founding Year: 2023
- Location: Bishop’s Stortford, UK
- Use For: Food Packaging
Biofuture produces compostable food packaging made from bioplastics. Its product line includes kraft takeaway boxes, bags, cups, bin liners, and cling film.
The packaging is compatible with food waste systems to enhance compost yield. It gives eco-conscious households and food service brands a pollution-free alternative to conventional plastics.
2. Mushee
- Founding Year: 2024
- Location: Brisbane, Australia
- Use For: Custom Molded Packaging
Mushee offers upcycled custom box inserts for packaging. The inserts mold around the product precisely, which provides protection and enhances presentation. The startup 3D prints the product and box to test the fit, and then makes a final mold using computer numerical control (CNC) aluminum.
It makes use of upcycled jute fiber from fabric sacks used in the coffee industry, and a biobased resin. These materials are home-compostable and decomposable in garden environments. This way, the startup serves brands seeking sustainable packaging solutions with eco-friendly materials with functional design.
3. Unbubble
- Founding Year: 2023
- Location: Gurgaon, India
- Use For: Packing Peanuts
Unbubble makes biodegradable packing peanuts using corn and agricultural waste. The peanuts provide cushioning and protection for items, especially functional for e-commerce industries. They dissolve completely in water, creating no packaging waste or toxic residue.
Additionally, the water, once the peanuts dissolve, serves as a fertilizer for plants, providing a zero-waste solution. This solution eliminates the use of pollution-causing polystyrene (EPS), polyurethane (PU), and polyethylene (PE) in single-use packaging.
4. PakItGreen
- Founding Year: 2023
- Location: East Lansing, Michigan, USA
- Use For: Eco-friendly Package Coatings
PakItGreen develops coatings and adhesives for paper and molded fiber packaging. The barrier coatings provide resistance to oil, grease, moisture, and water. Being bio-based, they are free from per- and poly-fluoroalkyl substances (PFAS), eliminating the use of plastic-coated paper.
Further, the startup’s wet-end additives improve the strength, water resistance, and oil resistance of molded fiber packages. This gives packaged goods (CPG) companies, packaging converters, and paper manufacturers a food-safe, compostable, repulpable, and recyclable alternative to single-use plastics.
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5. Soyle
- Founding Year: 2023
- Location: Montreal, Canada
- Use For: Packaging for Restaurants
Soyle makes recyclable and compostable food packaging using bamboo paper, kraft paper, birch wood, and recyclable plastics. Its products include cups, lids, bags, containers, and utensils for restaurants and cafes.
The packaging features water-based coatings that resist grease without requiring plastic linings. Materials like bamboo and kraft paper enhance durability and do not require chemical bleaching. These packaging solutions provide food service businesses with sustainable alternatives to conventional plastic packaging materials.
Want to Explore 1900+ Compostable Packaging Startups & Scaleups?
6. Rinse
- Founding Year: 2024
- Location: Rosieres-pres-Troyes, France
- Use For: Water-soluble Cosmetic Packaging
Rinse creates water-soluble packaging films for single-use cosmetic products. The packaging suits different product forms, including liquids, powders, solids, and gels.
These films are biodegradable and dissolve in water after use, leaving no ecotoxic residue. They also reduce carbon emissions by eliminating the need for sorting and recycling. This allows cosmetic brands to minimize plastic waste and enhance sustainability.
7. Planetpacks
- Founding Year: 2023
- Location: London, UK
- Use For: Compostable Pouch
Planetpacks offers compostable packaging pouches crafted from plant-based materials. Its proprietary Plantshield technology protects the packaging against moisture, ultraviolet (UV) light, gases, and aromas.
Moreover, the packaging decomposes in home compost bins and leaves nutrient-rich soil. These pouches are customizable in different formats like stand-up pouches, flat pouches, flow packs, and leak-safe liquid packs. This allows businesses like supplements, pet food, powders, nuts, spices, and beverages to safeguard the packaged product in customizable formats without plastic waste.
8. L-ife
- Founding Year: 2024
- Location: Baricella, Italy
- Use For: Mycelium-based Packaging
L-ife makes mycelium-based packaging boxes. It grows mycelium on agricultural waste like wood and straw leftovers. Being customizable and foldable, the package protects delicate goods that need to be stabilized within.
It also offers thermal insulation, acoustic insulation, fireproof and waterproof properties. After use, it decomposes naturally, enriching soil without industrial composting. This way, the mycelium packaging offers an eco-friendly alternative to conventional packaging.
9. Green Packaging Solutions
- Founding Year: 2023
- Location: Hong Kong
- Use For: Beverage Packaging
Green Packaging Solutions creates multilayer compostable capsules for coffee and tea co-packers and beverage brands. Its two products, GPS K-Capsule and GPS Espresso Capsule, are commercially compostable. The outer layer is made from bio compostable polymers that block moisture due to a low water vapor transmission rate (WVTR).
The encapsulated inner layer, prepared from polyvinyl alcohol (PVOH), blocks oxygen with a minimal oxygen transmission rate (OTR). This preserves the food from oxidation for longer periods, helping eco-conscious beverage brands to eliminate single-use packaging waste.
10. Mala Packaging
- Founding Year: 2022
- Location: Waterford, Ireland
- Use For: Compostable Mailers
Mala Packaging creates compostable mailers, Mala Mailers. It uses polylactic acid (PLA) and polybutylene adipate-co-terephthalate (PBAT) to substitute harmful plastics. Unlike other mailers, they feature compostable glue, making both the mailer and adhesive fully compostable.
The mailers offer durability and moisture resistance, suitable for e-commerce shipping. Another product, HexyPaper, is a recyclable and compostable honeycomb kraft paper alternative to plastic bubble wrap. These solutions target eco-conscious brands aiming to reduce microplastics or lasting residue in packaging.
Discover All Emerging Packaging Startups
The packaging startups showcased in this report are only a small sample of all startups we identified through our data-driven startup scouting approach. Download our free Packaging Innovation Report for a broad overview of the industry or get in touch for quick & exhaustive research on the latest technologies & emerging solutions that will impact your company in 2025!
