Compostable or recyclable? It depends on where you sell – 2026 update

“Compostable” may seem like the gold standard of sustainable packaging. But the reality is different: a compostable product can be the perfect choice in Milan and a problem in Munich.

Sustainability is not just about what a material is, but what happens to it after use. And in Europe, that depends largely on the country.

Two different promises

Recyclable and compostable are often used interchangeably, but they are not the same. They describe two completely different end-of-life pathways.

A recyclable material is collected, sorted, and reprocessed into new raw material. Paper, glass, metals, and certain plastics can go through this cycle multiple times, keeping resources in circulation.

A compostable material is designed to break down into water, carbon dioxide, and biomass under controlled conditions, usually in an industrial composting facility, without leaving toxic residues. Rather than becoming a new product, it returns nutrients to the soil.

In short: recycling keeps materials in the economy, while composting returns them to nature. Both have value, but only when the right infrastructure is available to process them.

One Europe, many waste management systems

The EU shares common goals, but not a single waste bin. Each country has developed its own waste management system around different priorities.

Countries such as Germany and the Netherlands have highly developed recycling systems and tend to prioritise recyclable packaging. In some of these markets, compostable plastics are not even accepted in organic waste collection streams. As a result, a compostable product designed to be “green” may end up being incinerated or contaminating a waste collection stream.

Italy, by contrast, has one of the most advanced organic waste collection systems in Europe, supported by a dedicated consortium for compostable bioplastics. Here, compostable packaging, particularly for food and food-contact applications, fits naturally into consumers’ established recycling habits.

The result? The same product can be a sustainability success in one market and an end-of-life challenge in another.

What this means for businesses

For companies selling across borders, “sustainable” cannot be a single claim printed on every package. It must become a market-specific strategy built around three questions: Where will this product be disposed of? Which collection stream will it enter? And can that stream actually process it?

This is where reliable third-party certifications make a difference, helping protect both the environment and the brand against accusations of greenwashing.

• CEPI Recyclability Test Method (Confederation of European Paper Industries): A European reference method for assessing whether paper-based packaging can be effectively recycled in paper mills.
• TÜV AUSTRIA OK compost: One of the best-known compostability certification schemes. OK compost INDUSTRIAL certifies biodegradation under industrial composting conditions, while OK compost HOME certifies biodegradation at the lower temperatures associated with home composting.

Certifications do more than add credibility: they demonstrate that a product meets defined requirements for compatibility with a specific end-of-life process, supporting the principles of a circular economy.

Why it matters now

The EU Packaging and Packaging Waste Regulation (PPWR) is raising the bar. It establishes recyclability requirements for packaging placed on the European market and identifies specific applications, such as tea bags, coffee pods, and adhesive labels attached to fruit, for which compostability is required, while still allowing Member States some flexibility.

In this context, choosing between compostable and recyclable packaging is no longer a minor marketing detail. It is a strategic decision that affects regulatory compliance, market access, and brand trust.

So, should you choose compostable products? Yes, where they make sense.

The most sustainable choice is always the one that aligns with the waste management system the product will actually enter, ensuring proper disposal, efficient resource recovery, and a measurable reduction in environmental impact across different markets.