Compostable packaging is made from natural materials that can break down and decompose in a composting environment. Unlike traditional plastic, which can take hundreds of years to degrade, compostable packaging typically breaks down within a few months when exposed to the right conditions, such as heat, moisture, and microorganisms. This type of packaging is designed to return nutrients to the soil, making it an environmentally friendly alternative. Many businesses are adopting compostable packaging to reduce waste and promote sustainability, contributing to a circular economy where materials are reused and recycled effectively.