Compostable packaging is made from organic matter that completely breaks down to produce nutrient-rich compost that leaves no environmentally damaging residue.

It requires an active microbial environment such as a compost heap to fully degrade; when placed in commercial composting conditions, it will typically disintegrate into carbon dioxide (CO2), water, and organic matter within 10-12 weeks. The compost produced can then be used for agricultural and horticultural purposes.