A Merger That Melts Plastic Away

TerraSafe and DisSolves combine to offer dissolvable, plant-based packaging amid tightening US plastics regulations

30 Jun 2025

Two US-based sustainable packaging startups, TerraSafe Materials and DisSolves, have merged in a move aimed at accelerating the shift away from single-use plastics in the food sector. The newly unified company will operate under the TerraSafe name and focus on commercializsing plant-based, water-soluble packaging materials.

Backed by Generation Food Rural Partners, a fund supporting agri-food innovations in rural America, the merger combines TerraSafe’s bio-based materials expertise with DisSolves’ edible film technology. The deal is intended to speed up the development and scaling of alternatives that dissolve in water without harming food safety or the environment.

“We’re incredibly proud of what the teams at TerraSafe and DisSolves have achieved and excited about the positive environmental impact this merger will bring,” said Tom Mastrobuoni, Chief Investment Officer at Big Idea Ventures, an investor in the initiative.

The combined entity plans to target consumer goods companies, foodservice providers, and retailers under pressure to reduce their use of traditional plastics. Recent state-level regulations in the US, including California’s restrictions on packaging waste, have driven demand for compostable or dissolvable solutions.

TerraSafe says its materials dissolve safely in water at home or during industrial processing, with potential applications in single-serve food items, dry goods, and meal kits. The firm is currently working with early commercial partners on pilot deployments.

Analysts note the company still faces technical and commercial hurdles. It must demonstrate performance comparable to plastic in terms of shelf life, barrier protection, and cost. Convincing large brands to switch from established supply chains will also require strong proof of scalability and regulatory compliance.

Still, the move signals growing momentum in climate-conscious packaging. By consolidating R&D and manufacturing under one roof, TerraSafe aims to accelerate time-to-market and position itself as a viable supplier at an industrial scale.

If successful, the venture could help push plastic-free packaging from niche applications toward broader industry adoption.