Case Study | 25 August 2025
How a Food Packaging Manufacturer Revamped Its Biodegradable Film Line Using Strategic Market Intelligence
Posted by : Abhishek Bhardwaj
A leading food packaging manufacturer took the bold step of shifting from conventional plastic films to biodegradable alternatives to meet rising sustainability goals and changing customer preferences. However, mid-implementation, the company hit a saturation stage, facing hurdles related to material durability, shelf-life performance, and regulatory misalignment. To confront these unforeseen circumstances, the company collaborated with Research Nester to develop a data-backed implementation pathway, supported by technical feasibility research and market intelligence.
An overview:
- The company is a U.S.-based food packaging manufacturer operating for over 35 years. It supplies films, laminates, and custom pouches to major players in the frozen food, dairy, bakery, and ready-to-eat sectors across North America.
- Increasing consumer demand for eco-friendly packaging and government regulations on single-use plastics pushed the company to take up biodegradable alternatives to traditional polyethylene and polypropylene films.
- In 2021, the company introduced a new variant of starch-based and PLA (polylactic acid) biodegradable films under its GreenEdge innovation program aimed at lowering plastic pollution in landfills.
- Soon after launch, many challenges surfaced, such as poor tensile strength, reduced shelf-life of packed food, and complaints from clients about non-compatibility with high-speed form-fill-seal (FFS) machines.
- To realign its strategy and restore customer trust, the company reached out to Research Nester for support in solving technical, operational, and market-centric pain points.
The Story
The company, a known leader in flexible food packaging, had long relied on conventional multilayer plastic films to provide high-barrier performance and durability. By mid-2020, industry trends and increasing public pressure around plastic waste started influencing buyer behavior. Retailers began demanding greener, eco-friendly options, and food brands actively sought to differentiate themselves using compostable or biodegradable packaging.
To stay ahead of the curve, the company initiated the GreenEdge Program, a sustainability-focused transformation project focused on substituting 40% of its plastic product line with biodegradable films by 2025. By Q3 of 2021, the first phase began with the launch of starch-based blends and PLA films, targeting bakery wraps and produce bags. But the results were not what the leadership expected. Several technical faults arose, as mentioned below:
- The films did not perform well under humid conditions, hampering the shelf-life of food.
- Some formulations were overly brittle, causing tearing during production.
- The new materials didn’t integrate well with customers’ high-speed packaging equipment.
- The company’s R&D took regulatory certifications and compostability standards very lightly in some U.S. states and Canadian provinces.
This led to bulk order cancellations from two major food clients and an overall revenue drop of 19% in Q4 2021. In parallel, competitor companies were gaining ground with bio-based films that had better durability and certifications. Encountering a reputational and financial risk, the company turned to Research Nester to conduct a market deep-dive, technical feasibility study, and identify actionable routes for material improvement, client retention, and product re-launch.
Our Solution:
The key challenge originated from the company’s aggressive time-to-market strategy and a lack of future planning around regional compliance and production alignment. In response, Research Nester provided a three-dimensional, customized consulting solution as listed below.
1. Technical Benchmarking:
- A comparative analysis of existing biodegradable films in North America, Europe, and the Asia-Pacific.
- Benchmarking the performance and cost of starch-based, PLA, and PBAT films under fluctuating humidity and temperature conditions, with evaluations of seal strength and shelf-life durability.
2. Operational Alignment Strategy:
- Suggestions to enhance material formulations for high-efficiency packaging operations.
- Custom insights into how leading CPGs were adapting their machinery to accommodate biodegradable films.
- Process audit of how films are transported, stored, and utilized before sealing, improving pre-use shelf conditions.
3. Market Compliance & Certification Review:
- A full list of compostability and biodegradability regulations across 12 U.S. states and Canada.
- Support in achieving compliance with ASTM D6400, EN 13432, and BPI certification standards.
- Assistance with verifying claims and communicating them in line with eco-labeling regulations.
A few additional insights and suggestions included:
- Employing multilayer hybrid films with compostable outer layers and moisture-resistant inner layers for enhanced performance.
- Collaborating with machine manufacturers to co-develop compatible solutions and standard operating procedures (SOPs) for customers.
- Engaging with municipal waste programs to assure end-of-life recyclability or composting of the new films.
Results
For over 30 years, the food packaging company has consistently grown its operations, supplying packaging solutions to more than 600 food producers and managing 22 manufacturing facilities across North America. Its core product offerings included cling films, microwaveable pouches, barrier trays, and resealable bags.
Following the launch of GreenEdge:
- Annual revenue fell from $180 million in 2020 to $147 million in 2021, largely owing to the biodegradable film failure.
- Internal satisfaction metrics showed a drop in customer approval ratings from 88% to 61%.
After following Research Nester’s strategic guidance, the following results were achieved:
- By the second quarter of 2022, the company reformulated its biodegradable film, opting for PBAT-laminated PLA to improve strength and heat resistance.
- Successfully grabbed BPI compostability certification for three product lines.
- The company introduced a co-branded pilot program with a top frozen food manufacturer, using 10 million PLA bags across more than 200 retail locations for in-market testing.
- By Q1 2023, the company’s revenue rebounded to $176 million, and predictions for Q4 2023 were at $195 million, marking an all-time high.
Client return rates got better, and three former customers renewed their contracts for biodegradable packaging supply. Internally, the company established an R&D steering committee to analyze future green innovations with greater focus and data-driven alignment.
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