Compostable and biodegradable are often used as if they mean the same thing. They do not. The difference matters if your food business is choosing packaging based on genuine environmental performance, or if you need to meet current Australian labelling rules. 

In short: biodegradable is a general description with no fixed testing requirement behind it. Compostable, when used correctly in Australia, refers to packaging tested and certified against a specific Australian Standard. One is a claim. The other is a measurable outcome. 

What Biodegradable Means 

Biodegradable means a material will break down over time through the action of bacteria, fungi or other organisms. On its own, this word does not say how long that will take, under what conditions, or what the material breaks down into. 

A plastic fork can technically be called biodegradable if it eventually breaks down, even if that process takes decades and leaves behind microplastic fragments. This is why “biodegradable” on a label is not a reliable guide to how a product will perform in a compost bin or a council green waste system. 

What Compostable Means 

Compostable is a stricter claim. In Australia, packaging that is genuinely compostable is tested against one of two standards: 

• AS 4736: industrial or commercial composting. Requires at least 90 percent of the material to break into pieces smaller than 2mm within 12 weeks, and at least 90 percent to fully biodegrade within 6 months, at the higher temperatures (around 55 to 60 degrees Celsius) reached in a commercial composting facility. 

• AS 5810: home composting. Covers the same general outcome, but tested at the lower, ambient temperatures of a home compost bin, which is a harder standard for many rigid packaging items to meet. 

Both standards also require the finished compost to show no toxic effect on plants or earthworms, and the material must contain more than 50 percent organic content. Most compostable food packaging on the market, including sugarcane bagasse containers, PLA-lined cups and CPLA cutlery, is certified to AS 4736 rather than AS 5810, because AS 5810 is harder for rigid items to pass. 

Why the Certification Matters More Than the Word 

A product can be labelled “eco-friendly” or “biodegradable” without ever being tested to either standard. This is a genuine problem for food businesses, because a container that is not properly certified compostable may not break down in a commercial FOGO (Food Organics Garden Organics) collection at all, and it may not be accepted by your council in the first place. 

Under Australian Consumer Law, businesses also need to be careful about how they describe packaging to their own customers. A vague claim such as “eco-friendly” without evidence behind it can attract scrutiny from the ACCC. If a supplier cannot tell you which standard a product is certified to, treat the word “biodegradable” on its own as marketing language rather than a guarantee. 

Does It Break Down in Your Bin? 

Certification is only half the picture. Whether a compostable item genuinely composts depends on where it ends up: 

• If your council offers a FOGO or green organics collection, check whether it accepts AS 4736 certified packaging specifically, since not all commercial composting programs do. 

• If a product is only certified to AS 4736, it needs an industrial facility. It will not reliably break down in a home compost bin. 

• If a product is certified to AS 5810, it should perform in both home and industrial composting conditions. 

• If compostable packaging ends up in general landfill, it behaves much like any other waste, since landfill lacks the oxygen and heat needed for composting to work as intended. 

What This Means When You Are Choosing Packaging 

For a cafe, restaurant or takeaway business, the practical question is not “is this biodegradable”, but “is this certified compostable, and where it will end up”. A few checks help: 

• Ask your supplier which standard, AS 4736 or AS 5810, a product is certified to, rather than accepting “eco-friendly” as an answer on its own. 

• Check your local council’s FOGO or green waste guidelines before promising customers a product is compostable in their council bin. 

• Be aware that some states have introduced additional labelling requirements for compostable food packaging, so check current rules for the state you operate in rather than assuming national consistency. 

• Where certification is not available or not clear, standard recyclable or general waste packaging may be the more honest choice until a verified compostable option is sourced. 

A Simple Way to Remember the Difference 

Biodegradable describes what eventually happens to a material. Compostable describes a tested, certified outcome within a defined time and set of conditions. Every compostable product is technically biodegradable, but not every product marketed as biodegradable is compostable. 

FoodPackaging2U stocks a sugarcane and kraft paper range for businesses that want packaging suited to composting rather than standard landfill disposal. As with any supplier, it is worth confirming the specific certification of a product against your own council’s requirements before making sustainability claims to your customers.