Navigating the compostable landscape: Regulation, innovation, and responsibility

As sustainability continues to shape the future of packaging, compostable materials are no longer a niche innovation—they’re becoming a regulatory necessity. This August 2025 update offers a detailed look at how global legislation, certification standards, and product innovation are converging to redefine the compostable packaging landscape, particularly for produce labels.

Understanding compostability beyond the buzzword

The term “compostable” is often used interchangeably with “biodegradable,” but the two are not the same. Certified compostable products are designed to break down within a specific timeframe, leaving no toxic residue and contributing to healthy compost. This is different from “biodegradable” materials, which could take decades to degrade and can leave behind microplastics or harmful substances that contaminate.

Meeting recognized composting standards and achieving certification separates credible compostable statements from intangible or unvalidated claims. It ensures that a product meets strict criteria for biodegradation, disintegration, and safety and performs as expected in either industrial or home composting environments at end of life.

Who sets the standards?

Globally, six major standards define what it means for a product to be compostable. These include AS 5810 and NF T51-800 for home composting, and EN 13432, ASTM D6400, AS 4736, and ISO 17088 for industrial composting. While the specifics vary, all these standards address similar factors: how quickly a product breaks down, set aggressive limits for heavy metals and toxins, and whether it harms soil organisms.

Certification bodies like TÜV AUSTRIA, DIN CERTCO, the Australasian Bioplastics Association (ABA), and the Biodegradable Products Institute (BPI) play a critical role in validating these claims. They rely on third-party lab testing to ensure compliance and publish certified products on their websites.

Legislation is catching up

Governments worldwide are increasingly banning conventional plastics in single-use packaging. This creates an opportunity for compostable solutions. The bans typically focus on the raw material content and may not address adhesives, inks, or coatings present in the final assembled product construction.

However, a more rigorous type of regulation is emerging—one that requires all components of a label to be compostable. These laws prioritize compost quality and include everything from the label material to the adhesive and ink. The EU’s Packaging and Packaging Waste Regulation (PPWR) is a leading example, with harmonization of compostable label requirements across member states planned for 2028.

In North America, states like California, New York, and Vermont are introducing or considering plastic packaging regulations.

There are still challenges as legislation continues to evolve. The recent suspension of South Australia’s ban on non-compostable fruit labels highlights the difficulty. A major obstacle – similar to France’s experience in 2022 – is the lack of regulatory harmonization. With multiple states involved, a state-level ban in Australia risked creating an uneven playing field for packers and adding operational complexity across the supply chain.

Progress toward a global standard

One of the most promising developments is the push for a globally harmonized composting standard for fresh produce labels. Composters have long struggled with label contamination, and a unified standard could help ensure that labeled products are accepted across all markets. Discussions between the produce and compost industries are underway using EN 13432 as the starting point, with considerations for regional preferences and infrastructure. For most current markets, industrial compostable will be the minimum requirement; the PPWR regulation, coming into force in February 2028, mandates this, with the option of a home compost mandate left for each market to decide.

Conclusion: Compliance & commitment

The global shift toward compostable packaging is accelerating, but regulatory progress remains uneven. While some regions are moving swiftly, others are grappling with fragmented legislation and infrastructure challenges. Certified compostable products are a recognized alternative to conventional non-compostable packaging choices. Work is still required to ensure that certified compostable products are integrated appropriately into national packaging targets and waste management infrastructure.¹ Continued close collaboration is needed between industry stakeholders, policymakers, and the organics sector to align infrastructure, standards, and policy.

Yet, one thing is clear: the momentum is no longer solely driven by policy. In the background, consumers are looking to businesses, not regulatory change, to lead the way. According to McKinsey’s 2025 global consumer survey, while environmental concerns may not always top the list of purchasing drivers, a significant portion of consumers still expect companies to take meaningful action on sustainability. This expectation, to demonstrate environmental leadership, is especially strong in Europe and among younger demographics.

In this context, certified compostable solutions are about more than just meeting packaging compliance – it’s about showing consumers that meaningful action is taken toward a sustainable future. By proactively adopting compostable technologies, businesses can meet emerging regulations, reduce environmental impact, and align with customer values.

Practical compostable packaging solutions are a key part of the future. In the eyes of today’s consumers, the companies that act now are shaping that future.