The rapid growth of e-commerce has brought convenience to consumers, but it has also raised concerns about its environmental impact, particularly the excessive use of single-use plastic and Styrofoam packaging, which contribute to greenhouse gas emissions and climate change.
While major corporations like Amazon are making efforts to reduce packaging waste, the reality is that approximately half of the 380 million tons of plastic produced each year are for disposable purposes, such as product packaging and Styrofoam.
Innovative companies like TemperPack, Green Cell, and Cruz Foam, which are leading the charge in creating more eco-friendly and biodegradable packaging solutions. California-based startup Cruz Foam, in particular, stands out by utilizing an unconventional source “shrimp shells”. (news: CNBC)
Cruz Foam CEO John Felts explained, “We’ve developed a process that allows us to transform this waste into large-scale alternatives to plastics.” The key ingredient in their foam is chitin, a substance found in shrimp shells, insects, and fungi. This material is not only biodegradable but can also be composted or naturally degrade in landfills, earning it the label of “earth digestible.” Moreover, as it’s derived from waste, the production costs are lower compared to other bio-based materials. This shrimp shells startup doesn’t manufacture the packaging themselves; instead, they provide the material to packaging companies.
Felts emphasized, “We collaborate with existing manufacturers, which enables us to quickly achieve economies of scale and cost-effectiveness.” Cruz Foam has already formed partnerships with companies like Rivian and Whirlpool, and investors are recognizing the immense potential in this market.
Dan Fishman, co-founder of Regeneration.VC, a firm supporting Cruz Foam, noted, “The market for sustainable packaging is substantial, given the increasing number of municipalities, states, and countries banning polystyrene and single-use plastics. Additionally, with corporate commitments to sustainability, there’s a significant business opportunity.”
Cruz Foam offers a range of products, from eco-friendly cold packaging for food to protective wraps as alternatives to bubble wrap. However, the sustainable packaging industry is diverse, with other companies exploring natural materials such as seaweed, mushrooms, waste wool, and recycled pulp.
Cruz Foam has secured funding from investors including Helena, Sound Waves, At One Ventures, and One Small Planet, with total funding reported at $18 million.
