9 startups changing the packaging industry –

Our reliance on plastics in packaging poses an increasingly disastrous threat to the environment, one that is likely to become even greater due to the rise of e-commerce.

Forty percent plastic is used for packaging. Only used once and then thrown away. Every year, over eight billion kilograms of plastic enters the seas and oceans, and it can take up to 500 years to decompose.

To address this issue, several investors have recently created funds aimed at investing in more sustainable alternatives.

In April this year, venture capital firm Emerald Technology Ventures launched a fund focused on sustainable packaging. Industrial and consumer companies Beiersdorf, Chevron, Henkel and recycling packaging manufacturer Huhtamaki are limited partners.

In June, Brazilian pulp producer Suzano launched a corporate unit dedicated to supporting renewable pulp packaging and other cellulosic biomass applications.

Another recent source of capital is the Circular Innovation Fund, a joint venture between Canadian investment firm Cycle Capital and Demeter, a French VC firm. The fund focuses on technologies for sustainable packaging, recycling and innovative waste solutions.

Many startups are trying to commercialize methods of eliminating single-use plastic, reducing waste and increasing recycling rates. Here are nine innovative companies to watch, three of which have already received corporate backing.

PulPac – Molded fiber packaging

The Swedish startup’s goal is to replace single-use plastic with dry-formed fibers derived from paper or pulp, which are separated into fibers in a mill. The fibers can be pressed into plastic-free products such as coffee cup lids, cutlery and food trays. The production process uses less water and produces fewer emissions than conventional plastic packaging.

Enterprises were well represented in the last fundraising event for the startup. Aliaxis, a Belgian pipe and fittings manufacturer, conducted a private placement worth 31 million euros ($32.2 million) in November. Other corporate investors include Finnish paper and pulp producer Stora Enso and Amcor Ventures, the corporate arm of the global packaging maker.

Voidless – packaging tailored to individual needs

Greener packaging is not just about making it from different materials, but also about getting people to use less of it. The Italian company Voidless reduces excess packaging by creating boxes tailored to the dimensions of the product. It does this using an artificial intelligence-based system that creates tailor-made packaging on demand. The solution reduces waste and shipping costs.

Launched in 2021, the startup is a spinout of Politecnico di Milano, Italy’s largest technical university. In July this year, it closed a $607,000 pre-seed round led by Poli360, an investment fund managed by 360 Capital Partners.

ePac flexible packaging – custom printed packaging

This American company, founded in 2016, produces custom packaging using a digital printing process. It claims that digitally printed flexible food bags and roll paper have a lower environmental impact than conventional printing. The raw materials used in its production, such as foils, inks and adhesives, can be recycled or composted.

The startup has expanded its operations worldwide, with offices in Europe and Asia. Global packaging manufacturer Amcor invested as much as USD 45 million in the company in September this year, building on previous investments in the company and increasing its minority stake.

Bloom Biorenewables – lignin-based packaging

Bloom Biorenewables, a spin-out from Swiss research university École Polytechnique Fédérale de Lausanne, transforms plant-based materials such as lignin and cellulose into a variety of products, including biodegradable packaging. The product line includes sustainable cosmetics, textiles, food additives and biofuels.

The Swiss company established in 2019 counts Breakthrough Energy Ventures-Europe and German Beyond Black Venture Capital as investors.

CIRT – Recycling App

The other end of the packaging life cycle also requires more attention. CIRT, a division of the University of Georgia, is trying to solve this problem by creating software that tells consumers and retailers how and where they can recycle materials. The consumer-facing app tells them exactly what to do with the product’s packaging.

CIRT has also created software for businesses that helps purchasing teams find suppliers that offer recyclable products and packaging. Creates environmental, social and governance reports, as well as data-driven visualizations of the environmental impact of purchasing and production.

Ecovative – Mushroom packaging

This mature American start-up, founded in 2007, produces products from mycelium, the root-like structure of a certain type of fungus. Its products include compostable packaging made from hemp cottage cheese and mycelium. It claims that an alternative material created like Styrofoam fully composts within 45 days.

In 2021, Ecovative raised $60 million 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 funds to operate a mycelium foundry and increase production.

Notpla – seaweed wrap

This British start-up produces packaging from seaweed and plants that are naturally biodegradable and compostable. It claims its food containers have the same grease- and water-resistant properties as the boxes currently used in takeaway food packaging, but without the plastic. It also produces paper, consumer electronics and luxury goods that decompose naturally.

The startup is backed by venture capital firms Sky Ocean Ventures, Astanor Ventures and Lupa Systems. The most recent publicized round was in December 2021, when it closed a $10 million Series A funding round led by Horizons Ventures.

Packoorang – Recyclable delivery bags

This Norwegian start-up offers reusable and recyclable shipping packaging. Shoppers can choose to have the product delivered in a reusable bag made from recycled bottles. Consumers can earn rewards and discounts for returning their bags at designated drop-off locations.

The company is backed by influential venture capital firm Pinecone Ventures and the Norwegian Retail Environment Fund, a private fund focused on reducing the use of plastic bags.

Genecis – biodegradable plastics

A Canadian startup converts food waste and carbon sources destined for landfills into biodegradable plastics. It works with companies to integrate its biodegradable polymers into their supply chains. Once the plastic reaches its end of life, it can be composted within a month. The company says that if it enters the ocean, it will degrade within a year.

In August, Genecis raised $7 million in a Series A round led by Khosla Ventures and Canadian venture capital fund BDC Capital. Swedish investment company Gullspang Re:food and food and beverage manufacturer Heinz Group also participated.