Home Compostable vs. Industrial Compostable

Last updated: April 2026

If you’ve started looking into compostable packaging, you’ve probably come across two terms: home compostable and industrial compostable.

They sound similar. They’re not.

The difference comes down to one simple thing, where and how they break down. And in Australia, that difference has a big impact on what your customers can actually do with your packaging.

The TLDR: Home compostable packaging breaks down in a backyard compost bin or worm farm. Industrial compostable packaging requires high-heat commercial facilities that most Australians don’t have access to. For ecommerce, home compostable is usually the more practical choice.

What does “home compostable” actually mean?

Home compostable packaging is designed to break down in natural, low-temperature compost environments, like a backyard compost bin or worm farm.

In Australia, this is typically measured against the AS 5810 standard.

In real terms, that means:

  • No specialised equipment required
  • Breaks down in normal compost conditions
  • Turns into non-toxic organic matter

This is the most practical end-of-life option for most Australian households. No council infrastructure required. No guesswork.

If you want to understand the materials behind this, our guide on what PBAT is explains how compostable mailers actually break down.

What does “industrial compostable” mean?

Industrial compostable packaging is designed to break down in commercial composting facilities.

These facilities operate at much higher temperatures, typically between 55 and 60 degrees, with tightly controlled moisture and microbial conditions.

In Australia, this is measured against AS 4736, and internationally you’ll often see EN 13432 referenced.

In practice, that means:

  • Requires specialised composting facilities
  • Breaks down faster due to high heat
  • Not suitable for standard home composting conditions

You can find out more about how Industrial Composting works here. On paper, it sounds great. In reality, access is the problem.

The real issue, access in Australia

This is where most ecommerce brands get caught out.

Industrial compostable packaging only works if your customer can actually get it to an industrial composting facility.

In Australia:

  • Most councils do not accept compostable packaging in kerbside green bins
  • Access to industrial composting is limited and inconsistent
  • Customers are rarely told where to take it

So what happens?

It usually ends up in landfill.

And once it’s in landfill, the benefits of being compostable largely disappear due to low oxygen and poor breakdown conditions.

Why home compostable is usually the better call

For most ecommerce brands, the goal isn’t just having “better materials”. It’s making sure the packaging actually gets disposed of properly.

Home compostable packaging gives you a clear, realistic outcome:

  • Your customer can compost it themselves
  • No reliance on council systems
  • No confusion around disposal

That also makes your messaging much cleaner:

“Pop it in your home compost or worm farm.”

That’s simple. That’s actionable. That’s what customers actually need.

Where industrial compostable still makes sense

Industrial compostable packaging isn’t useless, it just depends on the context.

It can make sense when:

  • You’re supplying to businesses with access to commercial composting
  • You operate within closed-loop systems (events, food service, venues)
  • You can control or guide the disposal process

For general ecommerce shipping, though, it’s often not the most practical choice.

How this differs from “biodegradable”

A lot of the confusion around compostable packaging comes from how it overlaps with the term “biodegradable”.

If you haven’t read it yet, our guide on biodegradable vs compostable explains why that term can be misleading and how it differs from certified compostable materials.

Short version, compostable has standards. Biodegradable usually doesn’t.

Quick comparison

Home compostable:

  • Breaks down in home compost
  • No special infrastructure needed
  • Best option for most ecommerce customers

Industrial compostable:

  • Requires commercial composting facility
  • Faster breakdown in controlled environments
  • Limited access for everyday consumers

So which should you choose?

If you’re shipping directly to customers across Australia, home compostable is usually the better choice.

It gives you:

  • A clear disposal path
  • Better real-world environmental outcomes
  • Simpler customer communication

If you’re unsure what format works best for your products, our sample pack is a good place to start.

For everyday ecommerce shipping, you can also explore our compostable Ecomailers, designed for lightweight orders and easy disposal.

The bottom line

The difference between home and industrial compostable isn’t just technical. It’s practical.

One works in your customer’s backyard. The other relies on infrastructure that often isn’t there.

If you want packaging that actually gets disposed of properly, not just marketed well, that’s the decision that matters.