The race to make packaging both circular and functional is intensifying, and the industry faces unprecedented pressure. 

On one hand, the EU’s new Packaging and Packaging Waste Regulation (PPWR) requires all packaging to be recyclable by 2030 and strengthens reuse mandates. In parallel, consumer behavior is driving change: people are more aware than ever of the environmental impact of packaging, and expectations for truly sustainable alternatives are rising fast. 

Yet, despite this momentum, many promising sustainable materials still struggle to reach the market because they lack integration with existing industrial processes. Without early collaboration between innovators and manufacturers, even strong technical solutions struggle to scale. 

“For sustainable materials to reach market scale, performance must include not only barrier or strength but also processability. How easily new materials integrate into existing lines is pivotal to achieving scale,” says Giorgia Scetta, Circular Materials Manager at MassChallenge Switzerland.

A new generation of startups, supported by MassChallenge Switzerland, is changing that by designing materials that perform on today’s lines while meeting future sustainability standards.  

Pack2Earth — Compostable packaging that performs like plastic 

MassChallenge alum Pack2Earth develops home-compostable, bio-based materials with high-barrier options that run on existing equipment, combining compostability with the protective qualities expected from plastics. 

“Our biobased materials don’t start to compost until they encounter a high concentration of microorganisms. They are shelf-stable, with high barriers to water vapour, oxygen and grease that ensure a long shelf-life,” explains Françoise de Valera, Co-founder & CEO. 

Ease of adoption is central to their strategy. “They work seamlessly in the same machinery and molds as fossil-based plastic, at the same cycle speeds, with no CapEx required. That makes them very quick and easy to adopt,” de Valera says.

Participation in MassChallenge Switzerland gave Pack2Earth direct access to corporates and mentors. 

“We are in active discussions and pilots with corporates we met through the programme, and one of the mentors is now our COO and a shareholder. We couldn’t ask for more!” 

After raising € 1.6 million of its € 3 million seed round, Pack2Earth is now backed by major VCs and scaling revenues while advancing its AI material formulation project to speed up development. 

FluxPolymers — Enabling recyclable high-barrier packaging  on polyolefin films  

Germany-based Flux Polymers has developed a UV-reactive primer that enables strong adhesion of high-barrier coatings such as AlOx on polyolefin films (PP and PE), facilitating fully recyclable mono-material packaging. The  patented ultra-thin polymer layer chemically binds to the surface, transforming otherwise inert films surface into smooth, polar substrates, while requiring only 5-10% of the material used in traditional primers and remaining negligible during recycling.  

“Flux Polymers’ UV-reactive primer can be applied using standard roll-to-roll coating equipment and cured within milliseconds under UV light, making integration into existing packaging production lines fast, cost-efficient, and requiring only minimal CapEx ,  typically just the addition of a UV lamp,” explains Dr. Anita Luxenhofer, co-founder & CEO/CTO 

Through MassChallenge Switzerland, Flux Polymers strengthened its connections with corporate R&D teams to extend validation of its coating technology to a wider range of packaging and processing conditions. 

Earthodic — Lignin-based coatings for recyclable paper 

Initially founded in Australia, Earthodic transforms lignin, a natural by-product of the pulp and paper industry, into bio-based coatings that improve the barrier properties of paper packaging while keeping it fully recyclable. 

“Earthodic’s coatings are manufactured using readily available ingredient-blending equipment and applied on existing paper-coating lines under standard conditions, meaning no reduction in output or new CapEx,” explains Anthony Musumeci, Co-founder & CEO. 

The company has raised just over USD 5 million and is scaling with packaging and chemical partners, having operations across the USA and Australia. It showcased its technology during Nestlé and SIG demo days run with MassChallenge Switzerland, illustrating how the programme connects corporates with innovators across its ecosystem. 

N&E Innovation — Packaging that protects food naturally 

Other startups are exploring how packaging itself can actively protect food. Singapore-based N&E Innovation developed ViKang, an additive made from food waste that prevents the growth of bacteria and fungi. The additive extends shelf life while keeping packaging recyclable and food-safe. 

“We created ViKang to prove that packaging can protect food and still remain recyclable. It’s about safety, shelf life, and circularity working together,” explains Founder Didi Gan. 

Through MassChallenge Switzerland, the team refined its regulatory strategy, built industry connections, and gained insights into global sustainable packaging trends. “The programme helped us focus on certifications, which is crucial in such a tightly regulated sector,” she adds. 

N&E Innovation now has strong traction in Asia and plans to expand into Europe this year, using the UK as its launchpad. “We look forward to working with distributors, collaborators, and European-based manufacturers that are looking for sustainable packaging to join us on this revolutionary journey,” says Didi. 

A shared goal: circularity at industrial scale 

From compostable films, high-barrier and recyclable coatings, to lignin-based barriers, these startups represent the new generation of packaging innovation. Their diversity of approaches reflects a common objective: to make circular packaging and seamless integration into existing manufacturing lines the new performance standard.  

The challenge remains significant: scaling production, achieving cost parity, and integrating new materials into complex global supply chains will demand continuous iteration and close collaboration among manufacturers, regulators, and public institutions. Yet, progress is accelerating, and the transition to circular packaging is no longer optional, but inevitable.  

 “Circular packaging will only scale if it fits smoothly into existing supply chains,” says Matt Lashmar, Managing Director of MassChallenge CH 

From challenge to change 

At MassChallenge Switzerland, startups like Pack2Earth, FluxPolymers, Earthodic, and N&E Innovation show how sustainability and functionality can converge. 

Through its annual Sustainable Materials Challenge, MassChallenge connects innovators with R&D, sustainability, and innovation leaders from global corporates such as Bühler, Givaudan, Mars, Omya, dsm-firmenich, Louis Dreyfus Company, Tate & Lyle, and SIG, enabling pilots, co-development, and scale-up opportunities. 

If you’re building solutions for circular, bio-based, or low-carbon materials and are ready to validate them on industrial lines, 👉 apply to the Sustainable Materials Challenge 2026: apply.masschallenge.org/mcch-sustainable-materials-challenge-2026, before November 17.