Many of the companies have financial and corporate venture backers, as businesses seek alternatives to single-use plastics.
Society’s continued reliance on plastic packaging is a catastrophic environmental hazard, and one that startups are increasingly attempting to address.
Recycling rates for plastic remain low. Only 9% of plastic is recycled globally, with 40% ending up in landfills.
But technologies are showing potential in replacing the need for single-use plastics. Advances in biomaterials based on biodegradable ingredients such as seaweed and corn husks are proving to be viable alternatives in areas such as food packaging and cosmetics.
Corporations are also coming under increased regulatory pressure to find alternatives to plastic in their supply chains. The European Union’s Packaging & Packaging Waste Regulation is due to come into force in 2025. The legislation sets waste reduction goals and requirements for recyclable packaging that plastic producers and users have to comply to.
Here are seven startups to watch with technologies that offer alternatives to wean us off single-use plastics.
Ionkraft
Founded: 2021
Based: Aachen, Germany
Funding to date: $3.6m
The team at Ionkraft, a spinout from RWTH Aachen University, in Germany, has developed a barrier coating technology that can be applied to plastics to improve their recyclability.
Today, plastic containers are combined with non-recyclable barrier plastics in multi-layer packaging containers. This makes it challenging to recycle these containers in the mechanical recycling process. Ionkraft’s barrier coating makes containers chemically resistant and fully recyclable.
In November 2024, the company received €3.5m ($3.6m) equity funding co-led by M-Ventures, the CVC arm of German electronics and pharmaceutical group Merck, and German VC TechVision Fonds. German public-private VC investor High-Tech Gründerfonds also participated in the round.
Fairbrics
Founded: 2019
Based: Paris, France
Funding to date: $23m
This French startup specialises in converting excess carbon dioxide emissions that cause global warming into products that replace virgin plastic made from fossil fuels. The startup has converted carbon dioxide emissions into a polymer, for example, that replaces traditional plastic. The technology reduces reliance on fossil fuels and sequesters carbon emissions at the same time.
It was awarded a €17m ($18m) grant by the European Union in January 2023 to scale technology that recycles CO2 waste fumes from chemical plants into textile products, one of its main product lines.
Fairbrics has partnered with several fashion brands including H&M, On-Running and Aigle to test its product. It also has collaborated with Coca-Cola Europacific Partners, the CVC arm of the global drinks brand, to use captured CO2 to make plastic bottles.
Nfinite Nanotech
Founded: 2021
Based: Ontario, Canada
Funding to date: $10m
The startup has created an ultrathin, high-performance barrier coating that maintains the recyclability and compostability of food packaging while also maintaining the freshness and shelf life of products.
The company’s nanocoating technology has been approved by the US’s Food and Drug Administration and can be integrated into existing manufacturing lines. It has several corporate customers, including Amcor, Mitsubishi, Pepsi Co and Unilever.
In May 2024, Nfinite Nanotech raised $6.5m seed funding, led by Swiss VC firm Collateral Good, with participation from Suzano Ventures, the corporate investment arm of the Brazilian pulp and paper maker. FTW Ventures, MaRS IAF, Overlay Capital, Ponderosa, Republic Capital and Next Generation Manufacturing Canada also participated in the financing.
growPack
Founded: 2019
Based: Buenos Aires, Brazil
Funding to date: $600,000
The Brazilian startup creates sustainable packaging from lignin and cellulose. Its main raw material is corn husk, but it says its technology can be adapted to other biomass sources. The packaging technology is fully compostable after 12 weeks under composting conditions. It looks similar to cardboard but is resistant to liquids for up to 36 hours.
growPack is building a pilot plant to test its technology and has partnered with Brazilian brewing company Ambev to prove the commercial value of its product through the corporate’s value chain.
In its most recent funding round in September 2024, it raised $280,000, with the participation of corporate investor Irani Ventures, the CVC arm of Israeli fashion brand holding company Irani Corp. VC firm Oxygea is also an investor.
Paptic
Founded: 2015
Based: Espoo, Finland
Funding to date: $29m
The Finnish startup has developed a wood fibre-based, recyclable material to replace plastics in packaging. The material comes from wood harvested from sustainably managed forests and can be manufactured on existing paper-making machines.
Paptic says its packaging material outperforms paper and has a smaller environmental impact than cotton. Its packaging materials can be recycled with paper and cardboard. The material is suitable for bags and pouches, e-commerce, product and food packaging.
The startup raised €27.5m ($29m) in growth financing in 2023. Investors include Ecolab, Japanese conglomerate Itochu, UB Forest Industry Green Growth Fund, Emerald Technology Ventures, SIG InnoVentures and the EIC Fund.
Greyparrot
Founded: 2019
Based: Bristol, UK
Funding to date: $13.2m
Greyparrot specialises in deploying artificial intelligence to analyse waste streams in sorting facilities. Its cameras capture images of waste flows, which then produce data on the recyclability of the waste material.
This data is aimed at informing companies whether they need to redesign packaging to improve recycling rates.
In 2021, the startup installed its technology for the first time in a commercial waste sorting facility in the UK. Since then, it has partnered with waste sorting and recycling company Bollegraaf to deploy the technology in its facilities. It also partnered with French waste management company NextWaste to produce waste analytics with the aim of improving recycling rates in France.
Corporate investors include Bollegraaf and Amcor. Its latest fundraising was in February 2024 when it secured an undisclosed amount.
Kelpi
Founded: 2020
Based: Bristol, UK
Funding to date: $9.5m
Kelpi uses seaweed to create bioplastic packaging. The material can be composted at home and leaves no toxins as it decomposes. Based at the Science Creates incubator in Bristol, the team are researching how the technology can replace multi-layer plastic packaging in hair and skincare products. The material has also been used to replace PET with fibre trays for displaying fresh cut fruit with high juice content.
The startup has research and development contracts with French cosmetics group L’Oréal, drinks company Diageo and UK supermarket Waitrose.
In May this year, it secured £4.35m ($5.5m) from VC firms Blackfinch Ventures, Green Angel Ventures, Kadmos Capital, QantX, Evenlode Foundation and the Southwest Investment Fund. Bristol Private Equity Club and One Planet Capital provided follow-on investment.
9 packaging startups we highlighted previously
In 2022, we showcased 9 packaging startups to watch out for. Check them out below, with updates.
PulPac
- Founded: 2018
- Based: Sweden
This Swedish startup aims to replace single-use plastic with dry moulded fibre that comes from paper or pulp which is separated into fibres in a mill. The fibres can be compacted into plastic-free products such as coffee cup lids, cutlery and food trays. The manufacturing process uses less water and produces fewer emissions than conventional plastic packaging.
In October this year, Finnish forest industry group Stora Enso opened a facility to use PulPac’s dry molded fibre product to make products replacing traditional plastics in food and drinks packaging.
Corporates are heavily represented in the startup fundraising. Aliaxis, a Belgian pipe and fittings manufacturer, led a €31m ($32.2m) private placement in November 2022. Other corporate investors include Stora Enso and Amcor Ventures, the corporate venturing arm of the global packaging manufacturer.
Voidless
- Founded: 2021
- Based: Italy
Greener packaging isn’t just about making it from different materials, it is also about getting people to use less of it. Italy’s Voidless reduces excess packaging by making boxes that fit the dimensions of the product. It does this through an artificial intelligence-driven system that makes custom-fit packaging on-demand. The solution cuts down on waste and shipping costs.
Launched in 2021, the startup is a spinout of Politecnico di Milano, Italy’s largest technical university. Today the company is publicly traded following an investment from CDP Venture Capital, alongside a private investment from 360 Capital investment fund. It has received more than €2.8m of funding.
ePac Flexible Packaging
- Founded: 2016
- Based: US
Launched in 2016, the US company makes custom packaging through a digital printing process. It claims its digitally printed flexible food pouches and roll stock have a lower environmental impact than conventional printing. Raw materials used in its manufacturing, such as plastic films, inks and adhesives, can be recycled or composted.
EPac Flexible Packaging has expanded around the world, with offices in Europe and Asia. Today the company has $200m in sales. Amcor is an investor in the company and holds a minority ownership in the company.
Over the past two years, the flexible packaging sector has come under financial pressures from inflation, higher interest rates, supply chain disruptions and the lack of available capital. In response, the company said it has reduced its manufacturing facilities in the US and upgraded its digital printers to increase productivity.
Bloom Biorenewables
- Founded: 2019
- Based: Switzerland
A spin-off from Swiss research university École Polytechnique Fédérale de Lausanne, Bloom Biorenewables converts plant-based materials, such as lignin and cellulose, into a variety of products, including biodegradable packaging. Its product line includes sustainable cosmetics, textiles, food additives and biofuels.
Created in 2019, the Swiss company counts Breakthrough Energy Ventures-Europe and Germany’s Beyond Black Venture Capital as investors.
CIRT Check
- Founded: 2019
- Based: US
The other end of the packaging lifecycle also needs more thought. University of Georgia spinout CIRT Check addresses this by creating software that tells consumers and retailers how and where they can recycle materials. A consumer-facing app informs customers exactly what to do with a product’s packaging.
In November this year, the company partnered with Consumer Brands Association, a US trade group, to integrate its product with the association’s SmartLabel digital tool. The integration allows consumers to learn more about how a product can be recycled by scanning a QR code.
Ecovative
- Founded: 2007
- Based: US
Founded in 2007, this mature US startup makes products from mycelium, the root-like structure of a type of fungus. Its products include compostable packaging made from hemp curd and mycelium. An alternative material it created to mimic Styrofoam will fully compost in 45 days, it claims.
In 2021 Ecovative raised $60m in a series D funding round, led by Viking Global Investors. Venture capital firms Senator Investment Group, AiiM Partners and Trousdale Ventures participated in the round. The company is using the funding to operate its mycelium foundry and boost production.
Ecovative has production facilities in the US and Netherlands, with plans to expand across North America and Europe. It is growing production facilities to meet contracted demand from companies in electronics, fashion and food.
Notpla
- Founded: 2014
- Based: UK
This UK startup makes packaging from seaweed and plants that are naturally biodegradable and compostable. It claims its food containers have the same grease and water-resistant characteristics as the boxes currently used in takeaway food packaging but without the plastic. It also makes paper, consumer electronics and luxury goods that naturally break down.
Notpla has the backing of venture capital firms Sky Ocean Ventures, Astanor Ventures and Lupa Systems. In September this year, it raised £20m ($25m), led by Finnish investor United Bankers, to fund its expansion in North America. Catalytic Capital for Climate & Health, a Temasek Trust fund, and Horizon Ventures, Radicale Impact, EIT Food’s AgriFoodInvest and Kibo Invest also participated.
Packoorang
- Founded: 2019
- Based: Norway
This Norwegian startup provides reusable and recyclable delivery package pouches. Buyers can choose to have their product delivered in a reusable pouch made from recycled bottles. Consumers can earn rewards and discounts for sending the pouch back at designated return points.
Packoorang is backed by impact venture capital firm Pinecone Ventures and the Norwegian Retailers’ Environment Fund, a private fund focused on reducing the use of plastic bags.
Genecis
- Founded: 2017
- Based: Canada
The Canada-based startup converts food waste and carbon sources destined for the landfill into biodegradable plastics. It works with businesses to integrate its biodegradable polymers into their supply chains. When the plastic reaches the end of its useful life, it can be composted in a month. If it finds its way into the ocean, it degrades within a year, the company claims.
It last publicly raised capital in August 2022 when Genecis secured $7m in a series A funding led by Khosla Ventures and Canadian venture capital fund BDC Capital. Also participating was Gullspang Re:food, a Swedish investment firm, and food and beverage maker Heinz Group.
