The Benefits of Biodegradable Packaging for Your Business
Last Updated on April 21, 2025 by Kira Andrus
Written By: Megan Curtis
In this ClearBags blog, we explore what biodegradable packaging is, why it’s a better packaging alternative, and its business benefits.
Sustainable packaging is no longer trendy; it’s vital to a company’s long-term success . A survey from 2018 shows that 73% of respondents opt for businesses that reduce their environmental impact. Years later, sustainability is still a driving factor in consumer decision making, with most people willing to pay more for sustainable packaging. As consumers lean towards compostable packaging and plant-based options, it’s important to understand what biodegradable packaging is and how it can benefit a business.
What does “biodegradable” mean?
Biodegradable products break down naturally over time with the help of bacteria or microorganisms. Many people confuse eco-friendly, biodegradable, and compostable because the terms seem to be used interchangeably. Put simply, eco-friendly means reducing environmental impact. Biodegradable means that it will decompose over time; however, that time frame is not often specified. Finally, compostable means that the product will break down under specific conditions. Make sure to educate yourself on the types of biodegradable plastic and how they break down in the environment. To understand more about what biodegradability means, the Biodegradable Plastics Institute (BPI) offers several resources and explanations.
What is biodegradable packaging?
Biodegradable packaging is a type of packaging that is designed to break down naturally into non-toxic components when exposed to heat, moisture, and microorganisms. These products are generally made from plant-based plastics (PLA, PHA) or agricultural waste. The end of life process is what differentiates biodegradable packaging and compostable packaging. All compostable packaging is biodegradable, but all biodegradable packaging is not necessarily simple to break down. The difference is in the controls that go into the decomposition process. For example, commercial composting facilities control the temperature and moisture to expedite the process.
Most packaging considered biodegradable has been mainly paper products. However, innovations in composting and plastic developments led to a push for more compostable products in the 2010s. Today, home compostable products are gaining popularity, and current research is looking at ways to take food waste and convert it into biodegradable plastics.
Biodegradable food packaging is becoming essential in the sweets sector to address concerns with traditional packaging materials. The initial change to paper packaging is proving a challenge for those who need biodegradable food packaging, as moisture and food oils present issues. Packaging solutions such as home compostable metallized heat seal bags and biodegradable plastic packaging can help eliminate food packaging concerns and reduce the environmental impact of packaging. In fact, biodegradable plastic and home compostable bags can make a lasting impact for generations to come.
Because biodegradable packaging is meant to break down, it differs from other sustainable packaging solutions that repurpose or recycle the product. Items such as aluminum, PET plastics, and corrugated cardboard can be recycled into new products. These materials don’t biodegrade, but they can often be reprocessed several times. Likewise, reusable packaging items like glass, silicone, and durable plastics don’t break down easily but can be reused for an extended time and often recycled at the end of their life cycle.
How can biodegradable packaging benefit businesses?
Eco-friendly looks good on you
As more and more consumers are willing to pay additional for eco-friendly packaging, using biodegradable packaging can enhance a brand’s reputation and customer loyalty. Studies show that eco-friendly packaging enhances brand perception, and recent data indicates that customers prefer brands that demonstrate a strong commitment to sustainability. Companies using biodegradable packaging can market their commitment to sustainability, attracting eco-conscious consumers. Using biodegradable packaging can demonstrate that a business is environmentally responsible, which will strengthen brand recognition, reputation, and customer trust.
Going green can save green
Advancements in technology and increased demand are helping to lower costs in biodegradable packaging. With many regions banning single-use plastics and adopting environmental regulations, switching to biodegradable packaging can help avoid fines and keep a business in compliance. Such practices can also attract customers who also need to follow specific regulations. Biodegradable packaging reduces unnecessary packaging elements and can increase efficiency with less packaging to deal with. Using biodegradable packaging can also lead to savings in reduced waste, disposal fees, and increased customer loyalty.
When making eco-friendly packaging choices, consider the impact of the packaging both for the product and the environment. Businesses should take the time to research the best options while paying attention to certifications like Forest Stewardship Council (FSC), Biodegradable Plastics Institute (BPI), and Sustainable Packaging Coalition (SPC). Companies need to clearly communicate how their packaging breaks down (i.e.commercially compostable or home compostable). As businesses use biodegradable packaging and call out eco-friendly packaging, consumers can put their support behind brands and products they trust.
