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Companies Are Switching to Biodegradable Packaging | What’s Driving the Change in 2026

2025-12-14

Biodegradable packaging has moved from a sustainability concept to a real business decision for many global brands.

In recent years, companies across food, retail, and consumer goods have accelerated their shift away from traditional plastic. While the move is often presented as a simple environmental upgrade, the reality behind these decisions is far more complex.

This article looks at why brands are adopting biodegradable packaging, what’s pushing the change in 2025, and the challenges many companies discover after making the switch.


Why Biodegradable Packaging Matters

Plastic takes hundreds of years to decompose. Even recycled plastics can leave microplastics behind. Biodegradable packaging, however, breaks down naturally through microorganisms, leaving minimal residues.

Another often overlooked factor is water usage. Manufacturing plastic uses large quantities of water for processing, cooling, and cleaning. Biodegradable materials, such as plant-based plastics, paper, or sugarcane fiber, typically consume fewer resources.

For food brands, sustainable packaging is becoming essential. Today's consumers expect businesses to take responsibility for their environmental impact. This is why food companies using biodegradable packaging are gaining loyalty, trust, and a competitive edge in the market.


Common Biodegradable Packaging Materials

Brands now have multiple options for eco-friendly packaging:

  • Kraft paper and specialty paper – strong, compostable, and recyclable

  • Plant-based plastics (PLA) – derived from renewable sources like corn starch or sugarcane

  • Compostable films – flexible, moisture-resistant alternatives to traditional plastic

  • Sugarcane and hemp paper – fast-growing and naturally biodegradable

  • Cellulose-based tapes and labels – completely compostable replacements for plastic adhesives

These materials protect products while ensuring environmental responsibility.


Top 10 Brands Using Biodegradable Packaging

Here's a detailed look at 10 brands that are leading the way in sustainable packaging.


NO.Brand       CateryPackaging Material
1Costa CoffeeCoffee
Compostable cups, lids
2Union CoffeeCoffee
Biodegradable coffee bags, takeaway packaging
3Start BucksCoffee
Green Planet™ plant-based biodegradable straws
4Luckin Coffee
Coffee
Paper cups, paper straws, biodegradable lids
5Snickers
Chocolate
Recyclable mono-material packaging, biodegradable boxes & tape
6Feastables by MrBeast
Chocolate
Eco-friendly biodegradable packs
7Lay's (Frito-Lay)
Snacks
Compostable snack packaging
8Pringles
Snacks
Paper tubes
9
Veggies Made Great
Food
Biodegradable trays and films
10PepsiCo
Snacks & Beverages
Biodegradable & recyclable packaging


10. Costa Coffee

Costa Coffee is one of the world's most recognized coffee chains. The brand has introduced compostable coffee cups and lids in multiple countries, reducing disposable plastic waste significantly. This move shows that even large coffee chains can adopt eco-friendly solutions without compromising convenience or quality.


9. Union Coffee (UK)

Union Coffee is a growing coffee brand in the United Kingdom. They use biodegradable coffee bags and takeaway packaging, ensuring their products are environmentally friendly. Even as a smaller business, Union Coffee proves that sustainable packaging is achievable from day one, setting a standard for emerging brands.


8. Starbucks

Starbucks has introduced Green Planet™ straws, a plant-based biodegradable biopolymer. These straws are made from plant oils instead of oil derivatives and naturally degrade into CO₂ and water through microorganisms found in soil and seawater.

This innovation helps reduce ocean pollution, including microplastics. Lifecycle assessments show that these straws emit less carbon dioxide than FSC-certified paper straws, and they reduce discarded straw weight by nearly 50% across Starbucks stores.


7. Luckin Coffee

Luckin Coffee, one of China's largest coffee chains, is committed to eliminating plastic wherever possible. The company uses paper cups, paper straws, and biodegradable cup lids. This large-scale adoption demonstrates that even high-volume brands can prioritize sustainability without compromising service or product quality.


6. Snickers

Snickers has introduced recyclable mono-material packaging for its chocolate bars. This change moves away from non-recyclable multilayer films. Even the boxes and sealing tape are biodegradable, made from cellulose instead of plastic. This improvement reduces waste and makes recycling easier for consumers.


5. Feastables Chocolate by MrBeast

Feastables focuses on sustainability as part of its branding. The chocolate products use eco-friendly and biodegradable packaging, appealing to younger consumers who prioritize environmental responsibility. Feastables shows that even fast-growing snack brands can adopt sustainable practices without compromising quality.


4. Lay's (Frito-Lay)

Lay's has experimented with compostable snack packaging, including initiatives at events like Coachella. This effort demonstrates that large-scale snack companies can implement sustainable packaging while maintaining product freshness and performance. Partnering with biopouches, Lay's ensures that packaging is practical, functional, and fully compostable.


3. Pringles

Pringles has introduced paper tubes for some of its products. These tubes decompose faster than traditional plastic cans and are easier to recycle. The shift reduces long-term environmental impact while still protecting the product during storage and transport.


2. Veggies Made Great

Veggies Made Great uses biodegradable trays and film packaging for its potato bakes. By choosing compostable and environmentally friendly materials, the brand reduces single-use plastic while providing convenient, ready-to-eat meals for consumers.


1. PepsiCo

PepsiCo is taking large-scale action to adopt biodegradable and recyclable packaging across snacks and beverages. By implementing compostable solutions and improving recyclability, PepsiCo demonstrates that even multinational corporations can reduce environmental impact while serving millions of customers worldwide.


Why biodegradable packaging isn’t a simple replacement for plastic

Biodegradable packaging is often seen as a direct replacement for plastic, but in reality, the switch is not always easy. One of the main challenges is cost. Biodegradable materials usually cost more than traditional plastic, which can increase overall packaging expenses, especially for small and medium-sized companies.

Another common issue is finding a trusted supplier. Not all biodegradable packaging is made to the same standard. Some suppliers offer materials that look eco-friendly but do not perform well in real use. This makes it difficult for companies to choose the right packaging without proper experience or guidance.

Companies with a strong reputation and reliable production processes are more likely to provide better solutions. In many cases, they can offer biodegradable packaging with the same design and function as plastic, but at a slightly higher price. For many brands, this higher cost is acceptable, but it still requires careful planning and supplier selection.



Choosing Food Packaging

Choosing sustainable packaging involves more than just swapping plastic for paper. Here are some key considerations:

  1. Product type and shelf life – Packaging must protect freshness and prevent contamination.

  2. Storage and transport – Materials should withstand handling and temperature changes.

  3. Consumer expectations – Eco-conscious buyers value visible sustainability efforts.

  4. Environmental impact – Consider compostability, recyclability, and lifecycle emissions.

For guidance, you can read our detailed blog on  how to choose the right food packagin .


Why Choose Biopouches

Before starting your small business or upgrading your packaging, selecting the right partner is essential. At biopouches.com, our expert team is available 24/7 to guide you through the latest trends, research, and future innovations in sustainable packaging.

We help coffee brands, snack companies, and food producers select compostable and biodegradable pouches that reduce waste, maintain product quality, and meet consumer expectations. Choosing biopouches ensures you start your business or upgrade your packaging responsibly.

Sustainability is no longer optional—companies use biodegradable packaging to stay competitive, reduce environmental impact, and build trust with their audience. Similarly, more food companies using biodegradable packaging are gaining loyal customers and setting new industry standards.
Featured Image Credit: Gemini Google

FAQs

  1. What is biodegradable packaging?
    Packaging that breaks down naturally into harmless substances like water and CO₂.


  2. Why is biodegradable packaging important?
    It reduces plastic waste, pollution, and environmental impact.


  3. Which companies use biodegradable packaging?
    Costa Coffee, Starbucks, Lay’s, Snickers, PepsiCo, and more.


  4. Are paper bags biodegradable?
    Yes, plain paper bags decompose naturally unless coated with plastic or wax.


  5. What materials are commonly used?
    Kraft paper, plant-based plastics, sugarcane, hemp paper, and compostable films.


  6. Can biodegradable packaging replace plastic entirely?
    It can reduce plastic use significantly but may not fully replace it in all cases.


  7. Do biodegradable materials cost more?
    They can be slightly more expensive, but long-term environmental benefits often outweigh costs.


  8. Is biodegradable packaging safe for food?
    Yes, most biodegradable materials are designed for safe food contact.


  9. How can small businesses start using it?
    Choose compostable pouches or bags from reliable suppliers like Biopouches.


  10. Does biodegradable packaging improve brand image?
    Yes, eco-friendly packaging builds trust, loyalty, and attracts environmentally conscious consumers.