London-based Shellworks ferments plant waste to make biodegradable plastic and pigment alternatives for the cosmetics industry. The company raised £11 million ($15 million) in a Series A round led by Paris-based impact firm Alter Equity. Also investing: JamJar Investments, Founder Collective, LocalGlobe, Third Sphere and former GitHub CEO Nat Friedman.
Shellworks says it has reached cost-parity with glass, aluminum and other non-plastic packaging materials. “The conversation around sustainable materials has been dominated by the perception that they’re too expensive for mass adoption,” said Shellworks’ Insiya Jafferjee. “At just a fraction of plastic’s scale, we’re already cost-competitive with alternatives like glass and aluminum. As we scale further, we’ll only get more competitive.”
Shellworks’ packaging is used by natural make-up brands, including Wild which was acquired by Unilever last year, Hair by Sam McKnight, Pamela Anderson’s Sonsie.
Policy push
Shellworks is responding to global demand for sustainable packaging, which hit nearly $314 billion last year and is expected to nearly double by 2035. In Europe, new packaging regulations mandate greater use of recycling and recycled materials; the EU is mulling policy additions to support bio-based alternatives.
Separately, University of Cambridge spin-out Sparxell last month raised €4.2 million ($5 million) in pre-Series A funding led by Swen Capital Partners to make plant-based pigments for packaging, cosmetics and textiles.
Beauty group L’Oréal selected startups developing packaging from seaweed, sugarcane and other plant-based materials as part of the €100 million ($116 million) accelerator it runs in partnership with Cambridge’s Institute for Sustainability Leadership.
