Let’s break it down: biodegradable vs compostable packaging

Wait… aren’t they the same thing?

Most people use the words “biodegradable” and “compostable” interchangeably. However, they’re not the same thing. And if you care about sustainability and are serious about reducing the impact of your packaging this difference matters more than you might think.

So buckle up, because we're going to break it all down and get to the real talk behind these two sustainability buzzwords, and how to use them correctly.

The definitions: not all that is biodegradable is compostable

Biodegradable means a material can be broken down by microorganisms, such as bacteria and fungi, into natural elements, including CO2, water, and biomass. The catch? It’s not a regulated term, so unless local laws step in, such as the FTC Green Guides and the EU Green Claims Directive, “biodegradable” is often vaguely defined, allowing for misuse and greenwashing.

So don’t believe anyone who tells you fossil-based plastic can be biodegradable, for example. While plastic does technically degrade in some hundreds of years, meaning it breaks down into smaller pieces, it does not biodegrade. The microorganisms are simply unable to break down and digest the bonds that hold plastic polymers together. Bioplastics, on the other hand, can be biodegradable if they’re manufactured correctly.

Compostable, on the other hand, means the material not only breaks down but does so within a specific timeframe and under certain conditions. An important distinction to make here is between home-compostable and industrially compostable – the latter applies to materials that can only break down in industrial composting facilities, which usually means higher temperatures than what your home composting bins reach.

The term compostable is also highly regulated by the ASTM D6400, and the European Standard EN13432. The result? Healthy, nutrient-rich compost with no toxic residue.

Not all breakdowns are created equal. Compostable materials are held to high standards. They must decompose within a specific timeframe (usually 90–180 days in industrial composting) and leave no harmful residue behind.

Biodegradable materials, on the other hand? They’re more like that friend who promises to show up “sometime this weekend.” Technically, they’ll get there, but when? Don’t hold your breath. Biodegradation can take years or even decades, especially if conditions aren’t just right — dry landfills and a lack of oxygen can delay the process significantly.

Let’s do a quick comparison

We made a comparison table below to make it easier to understand the fundamental differences between biodegradable and compostable materials:

Feature Biodegradable Compostable
Breaks down? Yes Yes
Timeframe? Undefined Usually 90–180 days
Requires specific conditions? No (but slower) Yes (but faster)
Regenerates soil? Not necessarily Yes

Now it’s really easy to see that using these sustainability terms interchangeably is an error in judgment. This distinction becomes really important in packaging: just because your plastic bag says it’s biodegradable, doesn’t mean you can put it into your compost heap. In fact, don’t rush into doing that even if it says “compostable”, unless it’s certified for at-home composting.

Building sustainably means building something better for future generations and enriching their lives, not leaving our waste as a problem for them to solve.

Why does it matter for packaging?

If you're running a business — especially in premium industries like cosmetics, jewellery, supplements, or electronics — you're probably looking for packaging that does three things:

  1. Protects the product like a sheepdog protects its flock.

  2. Provides a great unboxing experience.

  3. Sends a strong message that your brand walks your sustainable talk.

But here’s the part they don’t always put on the label: some “biodegradable” materials are still made with petrochemicals, and while they may break down into smaller pieces, those pieces can linger in the environment as microplastics. Like glitter at a kid’s birthday party, they stick around... forever.

According to the regulations, compostable materials must leave nothing harmful behind. That means no heavy metals, synthetic toxins, or sneaky by-products. They turn into water, carbon dioxide, and nutrient-rich compost — simple, safe, and clean.

Using biodegradable packaging might sound great on paper. But unless you can guarantee that it breaks down safely and quickly, you’re potentially passing the problem to your customer or local landfill. We’re not in a position to ‘pass the buck’ on this matter and simply hope that consumers will take action.

Compostable packaging is a better option, but it is also not a silver bullet..

The sustainable packaging showdown

Let’s put biodegradable and compostable packaging materials head-to-head to illustrate “the good, the bad, and the ugly.”

Feature Plastic packaging Biodegradable packaging Compostable packaging At-home compostable packaging that’s also reusable
Time to degrade 100–1000 years (but never really decomposes) Months or years Months if disposed of correctly (industrial facility or at-home, depending on the packaging) Months
Compostable Not always
Made from renewable resources Not always Usually, yes Usually, yes
Breaks down safely in a landfill Not always Usually, yes Usually, yes
Protects fragile items Not always Not always Usually, yes
Looks and feels premium Not always Usually, yes
Examples Plastic mailers, bubble wrap, and plastic tape Cardboard, paper packaging Bioplastics, mushroom packaging, seaweed packaging Wool packaging

Compostable packaging is better than just “(bio)degradable” packaging. Think about it – how does it benefit the planet when something just breaks down? Sure, it does little to no harm, but it also does no good.

Compostable materials that are designed by nature, such as seaweed, mushrooms, and wool, actually replenish the soil with useful nutrients when they decompose, increasing its health.

However, when it comes to packaging, it’s also important to highlight that preventing waste is better than managing waste. Materials that can be reused over and over again beat compostable single-use packaging any day. To quote the Ellen MacArthur Foundation:

“The more intact a material can stay while being circulated, the better, as it preserves not only the material, but also the embedded labour and energy.

As a rule of thumb, retaining the shape of the packaging (e.g., through reuse) is more desirable than grinding up the packaging (e.g., through mechanical recycling), which, in turn, is more desirable than breaking the packaging down into basic chemical components.”

Greenwashing alert: when biodegradable isn’t enough

Here’s where it gets messy: many products labelled “biodegradable” actually leave microplastics behind — tiny, invisible bits of plastic that pollute ecosystems and sneak into our food chains. Not exactly the legacy you want your unboxing experience to leave.

Biodegradable labels are loosely regulated, if at all. Anyone can slap “biodegradable” on a product and get away with it.

Compostable claims, on the other hand, are serious business. Products must be tested and certified to legally use the term “compostable” (especially in the EU). Remember the EN 13432 in Europe or ASTM D6400 in the US that was mentioned earlier. These standards prove that a material breaks down in industrial composting within a set time and feeds the soil instead of polluting it.

Industrial composting does not come without its challenges, though. First off, many US consumers have reasonably good access to industrial composting, but most consumers in Europe and other parts of the world still do not.

Secondly, and perhaps even worse, consumers are often misled by the “I’m compostable!” claims printed on packaging, as without reading the fine print, one can easily assume it’s at-home compostable.

That’s why at Woola, we’ve chosen a material that’s durable for reuse, designed to decompose by nature, and does good, not just ‘disappears.’ Our wool packaging breaks down into CO₂, water, and biomass, with zero microplastics left behind.

Our 100% Wool Envelope inlays and Bubble Wool are only made of wool, which means they release useful nutrients as they decompose, wherever that happens.

"If our wool packaging doesn’t get reused or returned, it can go into either compost or general waste, and over time, it degrades in nature." 

— Jevgeni Širai, Co-founder at Woola 

Even if Woola packaging ends up in a regular bin by accident, it will still break down safely in a landfill and release nutrients. It’s not perfect, but better — it’s more sustainable than plastic bubble wrap and other packaging.

Beyond the bin: what can your customers do with Woola packaging?

We love it when customers reuse our packaging. Some retailers have set up internal circular systems to reuse Woola packaging several times, and others help us collect the packaging via returns systems.

When return or reuse as packaging is not an option, people usually repurpose the wool packaging by turning it into a sponge, a cover for their smart devices or do some arts and crafts. 

Woola helps our clients say something powerful: “We care.” Not just about customer experience, but about the planet.

Because when you show your commitment to sustainability in action, people know it’s real.

Wrapping it up (pun intended)

So the next time someone says “biodegradable and compostable… same thing, right?” — you’ll know better. And you can do better. Choosing compostable packaging that’s reusable-first, like Woola, shows your brand isn’t just following a trend, you’re helping build a more sustainable world, one plastic-free parcel at a time.

We’ve already replaced more than 200,000 m2 of bubble wrap with wool packaging.

At Woola, we don’t do vague promises. We do facts and solutions. Materials that make a real impact on sustainability. And packaging that feels as good as it looks. Whether you’re shipping 10,000 parcels a year or just getting started, the materials you choose have an impact – so choose wisely!

Want to try Woola? Talk to our sales team or request a free sample today. Did you hear that we also do custom solutions for your brand? 

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