Best Biodegradable Packaging Options: How to Ship Sustainably (2025)

As an ecommerce merchant, you shouldn’t have to choose between the health of your business and the health of the planet. Many packaging companies now offer biodegradable alternatives to plastics—materials that eventually decompose under the right conditions. These include options made from paper, cork, mushrooms, and seaweed.

If you’re ready to swap plastics for more earth-friendly solutions, here’s a look at the many options in this burgeoning industry.

What is biodegradable packaging?

Biodegradable packaging is material that breaks down and decomposes into natural substances. This includes common compounds like water and carbon dioxide, as well as biomass containing natural elements like carbon, nitrogen, and phosphorus. The biodegradation process is driven by microorganisms such as bacteria, fungi, and algae.

Biodegradable packaging vs. compostable packaging

While biodegradation and composting sound similar, they aren’t always interchangeable.

“Biodegradable” refers to any material microorganisms (like bacteria and fungi) can break down into water, carbon dioxide, and other natural elements.
“Compostable” means organic matter can break down into nutrient-rich soil (compost) under controlled conditions, typically in an industrial composting facility.

All compostable materials are biodegradable, but not all biodegradable materials meet the standards required for composting.

What makes a package biodegradable?

Although many types of packaging can biodegrade, the term “biodegradable” is broad, and rates of biodegradation vary greatly. Some materials may take weeks to decompose, while others can take months, years, or even centuries.

Biodegradable packaging typically derives from wood and other naturally occurring materials that are used to make paper and cardboard. Increasingly, suppliers are making packages from other renewable sources, including hemp, corn, and sugarcane. Microorganisms break down these biodegradable materials into their component parts (water, carbon dioxide, etc.)—a process that generally isn’t possible for plastics and synthetic fibers.

The rate of biodegradation can vary significantly depending on environmental factors like temperature, moisture, oxygen availability, and the presence of microorganisms. In general, the ideal conditions are warm, moist, and laden with microbes.

Why ecommerce businesses are making the switch to biodegradable packaging

Ecommerce brands are increasingly adopting biodegradable packaging and sometimes even compostable packaging. Here are some key reasons:

Environmental considerations. Consumers report increasing concern about the environmental impact of plastic waste. Biodegradable packaging solutions help reduce plastic pollution and harm to natural ecosystems.
Brand reputation. Eco-friendly packaging can elevate a brand’s image and attract environmentally conscious customers. Many businesses highlight sustainable packaging as part of their marketing and sales pitches.
Regulatory compliance. Many regions are enforcing stricter rules on plastic waste. As biodegradable packaging becomes a more viable and compliant option, these regulations help keep plastic out of landfills and, in some cases, ban it for single-use packaging.
Competitive advantages. Offering greener packaging can give your business a competitive market edge, differentiating you from competitors. If your business seems otherwise identical to a rival in terms of price and selection, you might win on sustainability points by packing your items in plant-based materials that carry a low carbon footprint.
Cost savings. Sustainable packaging isn’t always pricier than standard plastic options. In some cases, biodegradable packaging can be more cost-effective in the long run, factoring in disposal and recycling fees associated with plastic.

If you’re looking for greener packaging options, you have more choices than ever. Many materials offer durability, functionality, and environmental responsibility. Here are eight biodegradable materials worth considering for your future packaging needs:

1. Compostable mailers

These mailers come from green materials like cornstarch and cellulose, which forms naturally in all plants. Their fibers break down in commercial composting facilities that do not rely on fossil fuels. Hero Packaging uses compostable mailers that are 30% plant-based materials and 70% PBAT (a synthetic bonding agent and certified compostable material). They even include composting instructions on the back of each mailer.

2. Mushroom packaging

This packaging is made from mycelium, the root network of mushrooms. Strong yet lightweight, it can mold to various shapes for protective packaging. Computing giant Dell uses mushroom-based padding instead of foam. This solution respects the environment by using a material that’s readily available in nature and made possible through a low-carbon process.

3. Recycled paperboard

Made from recycled paper pulp, this is an accessible and cost-effective option for boxes, tubes, and other packaging components. It’s sturdy and reusable, and, in some cases, it may be recyclable. Footwear manufacturer Rothy’s made sustainability a touchstone of its operations from the start; it now uses recycled paperboard as part of its packaging to further its environmental goals.

4. Corrugated paper

An eco-friendly alternative to bubble wrap, this material uses corrugated cardboard and is both biodegradable and recyclable. XXL Scrunchie & Co. uses this type of alternative packaging in place of plastics to wrap scrunchies. It also strives to use the least amount of packaging possible without compromising the product.

5. Biodegradable packing peanuts

Unlike their polystyrene counterparts, these come from natural, non-toxic sources like wheat and cornstarch, dissolving in water and leaving no harmful residue. They offer the same benefits as polystyrene peanuts, so your business won’t sacrifice quality for planet-friendly transport. Pet supplier Meow Meow Tweet operates under a philosophy of “more cats, less trash.” The brand uses biodegradable packing peanuts as part of this overall objective.

6. Bioplastics

These plastics are sourced from renewable resources like cornstarch or sugarcane. While not all bioplastics are biodegradable, you can compost some in industrial facilities. Look for BPI-certified compostable bioplastics for the best eco-friendly option. Canadian fast food giant Tim Hortons has emerged as a leader, embarking on a campaign to replace its plastic coffee lids and utensils with wood and plant-based alternatives. Reformation, a sustainable women’s clothing brand, uses recycled LDPE bags with a biodegradable polymer (BDP).

7. Agricultural byproducts

Straw, hemp, and bamboo go into making protective packaging such as cushioning or dunnage. Outdoor clothing brand Patagonia, which is phasing out plastic packaging altogether, now uses soy- and algae-based inks when printing packaging materials. The cosmetics company Lush is replacing some plastic with wood and cork products.

8. Seaweed-based packaging

This innovative material comes from seaweed, a fast-growing renewable resource. It offers good moisture protection, and you can compost it in industrial facilities without using excessive amounts of energy. Notpla is an innovator in this space, using seaweed to make coatings, films, and bags that function just like plastic but are fully biodegradable. Some are even edible.

Even if you can’t transition your business to a fully biodegradable form of packaging, you can still focus your efforts on more sustainable production. To cut down on waste, consider using infinitely recyclable materials like aluminum and glass. Even better, try to cut down on packaging. You can be like the cosmetics brand Kjaer Weis and replace disposable cartridges with refillable ones. It’s a smart financial move that can show your customers that you’re serious about sustainability.

Biodegradable Packing FAQ

What is the best biodegradable packaging?

The best biodegradable packaging will vary across industries. For direct-to-consumer shipping, compostable mailers made from plant-based materials—especially those that grow from mycelium—can be a great choice.

What is a potential problem with biodegradable packaging?

It can be challenging to source enough biodegradable packaging at a reasonable price. If you operate many stores and can buy in bulk, you may have the purchasing power to get large quantities at a great rate.

How long does it take for biodegradable packaging to decompose?

Some biodegradable packaging can decompose within weeks. Others might take months or even years to fully decompose.