Biodegradable vs. Compostable - What’s the Real Difference and Why Does It Matter?

Claims of “biodegradable” and “compostable” are increasingly common on product packaging. Consumers could be forgiven for mistakenly believing these terms are interchangeable; however, while all compostable products are biodegradable, the reverse is not always true.

Both concepts involve the breaking down of materials, but the difference between biodegradable and compostable isn’t just semantic; it’s critical to understanding waste, sustainability, and environmental impact. Misunderstanding these terms can lead to greenwashing, confusion in recycling streams, and infrastructure challenges.

The following helps explain what it means for something to be biodegradable versus compostable, the various standards involved, and how the Federal Trade Commission’s Green Guides are ensuring transparency for eco-conscious consumers.

Definitions and Core Concepts

“Biodegradable” is an umbrella term for anything that eventually breaks down naturally. Microorganisms drive this decomposition process, transforming organic matter (like food scraps, leaves, and paper) into smaller, chemical components (such as water, carbon dioxide, and biomass) given enough time. However, the time period for the biodegrading process ranges significantly across materials. To claim that a product is compostable, it must meet more stringent qualifications, including time limits.

“Compostable” is a subcategory of biodegradable, meaning compostable products are also biodegradable. The primary differences are that, to be considered compostable, products must:

• Complete the natural breaking-down process within a set period of time
• Biodegrade under specific aerobic environmental conditions
• Result in compost, which is a nutrient-rich soil that can serve as plant fertilizer

Fermentation and brewing processes can be used as metaphors to better understand biodegrading and composting. Like biodegradation, fermentation occurs naturally and can result in messy or unintended outcomes, like when orange juice spoils. Brewing beer, on the other hand, is an intentional process that utilizes controlled environmental conditions to achieve a specific, desired end product - much like composting.

Compostable: Defined, Certified, and Purpose-Driven

Multiple standards are in place to help define the concept of compostability and govern compostability claims. Key composting standards established by independent organizations include:

• EN 13432 (EU). European Norm (EN) standard 13432 oversees commercial compostability and biodegradability claims for product packaging.
• ASTM D6400 and D6868 (US). Recognized by the Biodegradable Products Institute (BPI), these two standards from the American Society for Testing and Materials (ASTM) cover plastics for aerobic composting in industrial or municipal facilities and products claiming to have a biodegradable plastic coating or film, respectively.  [Note: As of September 18, 2025 BPI has launched a home compostability standard to supplement their existing commercial compostability standard]
• TÜV OK compost. A certification program through TÜV Austria, TÜV OK compost defines the standards for home and industrial compostability of products or packaging. OK compost HOME-certified goods are capable of decomposing in a residential compost bin or pile. OK compost INDUSTRIAL items, alternatively, require a controlled environment and high heat to break down in an industrial composting setting.

Given the various standards, compostable can mean more than just being capable of naturally breaking down. The above standards ultimately help ensure that compost is safe, healthy, and beneficial to the environment.

Compost vs. Landfill

A composting facility isn’t simply a fancy version of a landfill. Think of composters as producers rather than processors. Composting is a biological production process that transforms waste into useful compost. It’s a concept similar to the Mr. Fusion apparatus on the Delorean in Back to the Future. Doc Brown’s device was able to use trash as fuel for his time machine.  Critically, composting relies on aerobic (oxygen-loving) bacteria, which break down organic material primarily into carbon dioxide and water, with minimal methane production. In contrast, waste in landfills often decomposes anaerobically (without oxygen), producing significant methane, a potent greenhouse gas.

“Trash” must meet specific qualifications to be appropriate for industrial or home composting, however. Not all biodegradable items belong in a compost bin or facility. For example, materials that are appropriate for the home compost heap include food and yard waste, along with any products or packaging that have been certified home compostable. Various organizations have developed regulatory guidance to help consumers navigate these distinctions and avoid misinterpreting environmental claims.

Green Guides: What, Why, and What’s Next?

In response to increased public interest in renewable and sustainable materials and products, the Federal Trade Commission (FTC) first introduced the Green Guides in 1992. The objective of these guides is to minimize any deceptive or vague environmental claims that could potentially mislead consumers. A package labeled with the claim of “eco-friendly,” for instance, would only be acceptable if the manufacturer could back up that claim with certifications or related context.

The guides have other goals, as well. They provide clarity on terms like recyclable, biodegradable, compostable, and non-toxic, as well as the documentation companies are required to have to use such wording. Lastly, they establish standardized language that assists businesses and organizations in using environmental marketing verbiage that’s accurate, verifiable, and consistent.

In terms of biodegradability claims, companies must be able to provide evidence that their entire product will break down and return to nature within approximately one year once disposed of in a landfill under typical conditions. Despite these Federal guidelines, some US state laws prohibit ‘biodegradable’ claims regardless of timeframe or evidence.  Similarly, compostability claims require that a product have the proven ability to safely decompose once at the composting facility without negatively impacting the health of the compost or resulting in a toxic residue.

As an example of the Green Guides in action, the FTC sent 15 warning letters to marketers in 2014 who were claiming their plastic waste bags were oxodegradable. FTC staff members were concerned that these claims could be deceiving as, under typical landfill conditions, the biodegradability of their bags might not be any better than that of standard bags. The FTC gave these marketers a deadline to either provide scientific evidence that verified these claims or remove them from their marketing materials.

Future of the Green Guides

The FTC most recently updated the Green Guides in 2012, but updates were proposed in 2022 and 2023. These updates would address the changes to waste infrastructure and consumer understanding, as well as technological advancements, over the last 10+ years. As terminology evolves, future guide additions could include concepts such as “sustainable,” “plastic-free,” and “climate neutral.”

Whatever changes are ahead, the team at LifeMade is here to keep you up to date on the latest industry developments. In future publications, we intend to cover in more detail what it means for a product to be biodegradable, and we’ll dig into the infrastructure challenges the US faces with composting.

This article was prepared by LifeMade and reflects our perspective as a manufacturer in the industry.

Additional Reading

• BPI – Commercial Compostability Certification Scheme
• TÜV AUSTRIA – Solution: OK compost HOME; Solution: OK compost INDUSTRIAL
• FTC – Green Guides; Environmental Claims: Summary of the Green Guides

[1]Federal Trade Commission. (2014, October 21). “FTC Staff Warns Plastic Waste Bag Marketers That Their ‘Oxodegradable’ Claims May Be Deceptive.” https://www.ftc.gov/news-events/news/press-releases/2014/10/ftc-staff-warns-plastic-waste-bag-marketers-their-oxodegradable-claims-may-be-deceptive.