Why Compostable Packaging Is Becoming a Business Requirement Rather Than an Environmental Choice

For many years, sustainable packaging was largely driven by consumer preferences, corporate ESG commitments, and brand positioning. Companies adopted environmentally friendly packaging primarily to strengthen their sustainability image and respond to growing consumer awareness.

Today, the landscape is changing.

Across Europe, North America, Australia, and parts of Asia-Pacific, governments are introducing increasingly stringent regulations targeting packaging waste, single-use plastics, producer responsibility, environmental claims, and end-of-life waste management. What was once considered a sustainability initiative is rapidly becoming a business requirement.

For brands, retailers, distributors, importers, e-commerce sellers, food-service operators, and municipal programs, the question is no longer:

"Should we consider sustainable packaging?"

Instead, it has become:

"How can we ensure our packaging remains compliant while maintaining performance, efficiency, and customer expectations?"

As a result, compostable packaging is increasingly viewed not only as an environmental alternative, but also as a practical strategy for navigating evolving regulatory requirements across global markets.

Global Regulatory Trends Reshaping the Packaging Industry

Although packaging regulations vary by region, most are moving in a similar direction.

Governments worldwide are focusing on:

• Reducing single-use plastic waste
• Increasing producer responsibility
• Improving recyclability and compostability
• Supporting circular economy objectives
• Expanding organic waste collection systems
• Reducing landfill dependency
• Strengthening environmental claim requirements

These developments are reshaping procurement decisions throughout the packaging supply chain.

Packaging is no longer evaluated solely on cost, appearance, and functionality. Increasingly, businesses must also consider compliance, certification requirements, waste-management infrastructure, and long-term sustainability objectives.

For many organizations, packaging has become both a procurement decision and a compliance decision.

European Union: The Global Benchmark for Packaging Regulations

The European Union remains one of the most influential regulatory regions in the world. Packaging policies introduced in Europe often influence procurement standards and sustainability expectations far beyond EU borders.

Single-Use Plastics Directive (SUPD)

The Single-Use Plastics Directive (SUPD) entered into force in 2019, with major restrictions becoming applicable from July 2021.

The directive targets commonly littered single-use plastic products and introduces measures designed to reduce plastic pollution throughout the EU.

Key implications include:

• Restrictions on selected single-use plastic products
• Expanded labeling and marking requirements
• Greater scrutiny of environmental claims
• Increased demand for sustainable alternatives

For businesses selling into Europe, packaging materials and product claims are increasingly subject to regulatory review.

Packaging and Packaging Waste Regulation (PPWR)

The Packaging and Packaging Waste Regulation (PPWR) entered into force in February 2025 and will generally apply from August 2026.

Unlike previous directives, PPWR creates a more harmonized regulatory framework across all EU Member States and applies to virtually all packaging placed on the European market.

Key objectives include:

• Reducing packaging waste generation
• Improving packaging design
• Increasing material efficiency
• Supporting recyclability and compostability
• Strengthening producer responsibility
• Advancing circular economy goals

For manufacturers, importers, retailers, and brand owners, packaging compliance is becoming increasingly tied to market access and retailer acceptance.

Businesses that proactively evaluate packaging alternatives today are likely to be better prepared for future regulatory developments.

United States: State-Level Regulations Driving Packaging Transformation

Unlike Europe, packaging regulations in the United States are primarily implemented at the state level.

Several states have introduced or expanded legislation related to:

• Plastic bag restrictions
• Packaging waste reduction
• Environmental marketing claims
• Extended Producer Responsibility (EPR)
• Packaging recovery programs

States such as California, Colorado, Oregon, Washington, and Minnesota are increasingly influencing packaging procurement decisions nationwide.

For companies operating across multiple states, maintaining different packaging systems for different jurisdictions can create complexity and additional compliance risks.

As a result, many businesses are evaluating packaging solutions that can support broader compliance objectives while maintaining operational efficiency.

Australia, New Zealand, Canada, and Japan: Expanding Sustainability Expectations

Although implementation timelines differ, these markets are moving in a similar direction.

Australia & New Zealand

Both countries continue expanding restrictions on problematic plastic products while encouraging the adoption of certified compostable alternatives.

Buyers increasingly seek packaging that aligns with recognized standards such as:

• AS 4736 Industrial Compostability
• AS 5810 Home Compostability

These certifications are often requested by retailers, distributors, and sustainability-focused organizations.

Canada

Canada continues advancing waste-reduction initiatives and expanding municipal organics collection programs.

As composting infrastructure develops, demand for compostable packaging solutions is expected to increase across food service, retail, and municipal applications.

Japan

Japan's sustainability transition is often driven by corporate procurement standards and waste-reduction objectives.

In addition to environmental performance, Japanese buyers place strong emphasis on:

• Product quality
• Food-contact safety
• Manufacturing consistency
• Regulatory compliance

2026–2030 Global Packaging Regulation Timeline

Key Regulatory Milestones Shaping the Future of Compostable Packaging

As governments strengthen packaging regulations worldwide, businesses should prepare for increasingly demanding compliance requirements.

What This Means for Packaging Buyers

While regulations differ by market, the overall trend is remarkably consistent.

For many organizations, waiting until regulations become mandatory may significantly increase future compliance costs and supply-chain risks.

How These Regulations Affect Different Industries

Retail & Grocery

Retailers face increasing pressure from:

• Plastic bag restrictions
• Sustainability commitments
• Retailer environmental targets
• Consumer expectations

Common priorities include replacing conventional plastic bags while maintaining usability, durability, and cost efficiency.

E-commerce & Logistics

Online sellers and logistics providers face growing scrutiny regarding packaging waste.

Challenges include:

• Reducing unnecessary packaging
• Replacing conventional shipping mailers
• Maintaining shipping performance
• Preserving brand presentation

Food Service & Hospitality

Restaurants, food-service distributors, and delivery operators must balance:

• Food-contact compliance
• Product performance
• Waste-management requirements
• Sustainability goals

Packaging solutions increasingly need to support both operational efficiency and environmental objectives.

Municipal & Public Programs

Municipalities, environmental organizations, and public waste-management programs increasingly seek products that align with local composting infrastructure.

Common applications include:

• Compostable dog waste bags
• Organic waste collection liners
• Community composting programs

These projects require solutions designed for real-world waste-management systems rather than marketing claims alone.

The Compliance Challenges Many Businesses Underestimate

Switching to compostable packaging is rarely as simple as replacing one material with another.

Many organizations underestimate four major challenges.

Certification Requirements

Different markets recognize different certification systems, including:

• EN 13432
• ASTM D6400
• BPI Certification
• OK Compost INDUSTRIAL
• OK Compost HOME
• AS 4736
• AS 5810

Understanding which certifications apply to a target market is essential.

Packaging Performance

Packaging must continue to deliver:

• Strength
• Durability
• Sealability
• Printability
• Shelf-life performance

Compliance should never come at the expense of functionality.

Environmental Claims & Labeling

Environmental claims are receiving increasing regulatory attention.

Improper labeling or unsupported compostability claims may create compliance risks and damage brand credibility.

Supply-Chain Scalability

A material that performs well during product testing may not always perform consistently at commercial scale.

Long-term supply reliability and manufacturing consistency are increasingly important considerations.

How Torise Supports Businesses with Compliant Compostable Packaging Solutions

At Torise, compostable packaging is viewed as a complete compliance-oriented solution rather than a standalone product category.

Our approach begins with understanding:

• Target market regulations
• End-use applications
• Distribution channels
• Branding requirements
• Waste-management infrastructure
• Certification expectations

This enables us to recommend solutions aligned with both regulatory requirements and commercial objectives.

Retail & Grocery Solutions

Torise supports retailers and grocery brands with:

• Compostable produce bags
• Checkout bags
• Bakery packaging bags
• Fresh-food packaging solutions

Designed to balance food-contact safety, durability, transparency, and compliance requirements.

E-commerce & Logistics Solutions

For e-commerce brands and fulfillment operations, Torise provides:

• Compostable mailers
• Return packaging solutions
• Custom-branded shipping bags
• Lightweight packaging structures

Designed to support sustainability goals while maintaining shipping performance.

Food-Service Solutions

For food-service operators and distributors, Torise offers:

• Food waste liners
• Compostable food packaging bags
• Organic waste collection solutions
• Food-contact compliant packaging systems

Suitable for demanding commercial environments.

Municipal Program Solutions

For municipalities and environmental organizations, Torise provides:

• Compostable dog waste bags
• Community composting program solutions
• Public waste collection bag systems

Designed around real-world composting infrastructure and public-use requirements.

Beyond Products: A Full-Stack Compostable Packaging Solution

A successful compostable packaging strategy involves more than selecting a material.

Torise supports customers through a comprehensive development process.

Material Engineering

Matching compostable material systems to performance, certification, and end-of-life requirements.

Structural Engineering

Optimizing thickness, strength, sealing performance, and durability.

Branding & Private Label Development

Supporting custom printing, retail-ready packaging, and private-label product lines.

Global Compliance Support

Supporting certification alignment, documentation requirements, and market-specific compliance objectives.

Procurement FAQ: Choosing the Right Compostable Packaging Solution

Looking Ahead

As packaging regulations continue to evolve across Europe, North America, and Asia-Pacific, businesses are increasingly required to consider not only packaging performance, but also regulatory compliance, waste-management compatibility, and long-term sustainability objectives.

For many organizations, selecting a compostable packaging solution is no longer simply a packaging decision. It is becoming part of a broader market-access, procurement, and risk-management strategy.

Businesses that begin evaluating compliant packaging alternatives today are often better positioned to adapt to future regulatory changes while maintaining supply-chain stability, customer expectations, and competitive advantage.

References

• European Commission – Single-Use Plastics Directive (SUPD)
• European Commission – Packaging and Packaging Waste Regulation (PPWR)
• European Commission – Circular Economy Action Plan
• ASTM D6400 Standard Specification for Compostable Plastics
• EN 13432 Requirements for Packaging Recoverable Through Composting and Biodegradation
• BPI Certification Standards
• AS 4736 Industrial Compostability Standard
• AS 5810 Home Compostability Standard
• State-Level Extended Producer Responsibility (EPR) Programs in the United States
• Publicly Available Government Sustainability and Packaging Policy Resources