Bpacks, a UK-based developer of the first bark packaging technology that integrates easily into existing production streams, replacing plastic materials, is thrilled to announce the successful completion of a €1M deal at the pre-seed stage with investors. Bpacks is completely based on the circular economy, producing 100% home compostable packaging. Bpacks’ composite material allows the production of bark packaging forms using standard manufacturing equipment for plastics and pulp moulding technology. This eco-friendly packaging extends the shelf life of perishable items like meat, vegetables, and fruit up to 7 days and helps reduce food waste more than 42%.
To respond to the demand from FMCG retailers regarding the transition to green materials and the extension of product shelf life, Bpacks has partnered with Serbian retailer Gomex, which has over 300 stores in Southern Europe, realizing the commercialization of tree-bark technology.
“ESG principles and sustainability are central to our company’s mission, and we’re proud to be pioneers in offering innovative, tree bark-based packaging to our customers. By introducing this ground-breaking, eco-friendly packaging, we aim to lead by example and inspire more sustainable practices across our industry. The Bpacks solution will benefit not only end users but also our company by reducing product write-offs, enhancing shelf life and minimizing waste. This aligns seamlessly with our ESG values and sets a new standard for sustainability within our industry,” - says Dimitrije Stojanović, CEO of Gomex.
“Our product is universal in nature and made of up to 80% industrial by-products, meaning it can help manufacturers of food and beverages, cosmetics and beauty products and household items without causing environmental harm. Furthermore, our packaging solution, due to the natural properties of bark, has a high antibacterial index and increases the shelf life of products, meeting the demands of our clients. Aiming to secure a seed round by March 2025, we intend to build our own pellet manufacturing facility and establish the supply chain by providing materials for plastics manufacturers and directly for our clients,” says Lev Bolshakov, сo-founder of Bpacks.
The global rigid packaging market size reached 218 billion USD in 2023 and is projected to hit around 366 billion USD by 2034, expanding at a CAGR of 5%. The world volume of wood waste is expected to become a new market that allows the production of packaging worth at least €100B.
“The sustainable innovation of a company like Bpacks marks an important step for retailers looking to reduce their environmental footprint without sacrificing quality or increasing the cost for customers. Bpacks demonstrates how eco-friendly practices can seamlessly integrate into mainstream markets, setting a new standard for packaging solutions. Thanks to this, we can expect Bpacks to achieve over €40M at 30% EBITDA by 2028,” — says Mikhail Taver, advisor and member of the Board of Directors at Bpacks.
Bpacks has a team of eight with an R&D center in Belgrade with 5 scientists who have submitted Bpacks innovation to the patent bureau this year. The company plans to establish operations in Spain in 2025, and is currently in the active stage of raising money for setting up the manufacturing facility of pellets and packaging products in Spain that will allow it to address the needs of the European packaging market and begin operations in the USA.