When a small team of determined innovators set out to reimagine a world without plastic bags a few years ago, their investigations led them to a sustainable product unlike anything the world had ever seen.
Reusable faux plastic bags that disappear when they come into contact with water.
“It didn’t take long for us to have a dig around and see what was readily available and where the gaps were in the market,” Cassava Bags Australia’s Head of Innovation, Chun Lau says.
The four co-founders quickly realised that a lot of the products on the market simply broke down into microplastics, which was still doing environmental damage. They began hunting for a product that would break down completely, but nothing exists.
The team discovered that a starchy root vegetable called the cassava plant could hold the key to a radical rethink when it comes to plastic.
Known to be a resilient crop, there are 303 million tonnes of cassava plants grown annually, making it a valuable resource. Their discovery has led to the cassava plant now being considered one of the most promising resources in the plastic-free world due to its sustainability.
This innovative material replicates the properties of traditional plastic, but is 100% biodegradable and compostable, which can dissolve in water.
"We raised just shy of $600,000 the first time, which gave us a pool for some further research and development so we could improve our product. We also created a water resistant range, and developed custom solutions for a range of companies.”
CHUN LAU – CASSAVA BAGS FOUNDER
“Our products don’t release toxins, chemicals or microplastics. Instead, they decompose into carbon dioxide, water and biomass, which are all naturally occurring substances. Our bags are also safe for aquatic life, which means they won’t cause harm if they end up in water bodies,” Lau explains.
Since its launch, Cassava Bags Australia has been revolutionising the world of single use plastics with its new plant-based bio-resin. And it is determined to take its innovative and growing product lines and services global, as it forces strategic partnerships with companies dedicated to taking urgent action against single-use plastic.
“Single use plastic has been around for years dominating the industry, and we’ve been accustomed to that convenience. But we’re offering customers the chance to make a simple switch, without changing the convenience.”
The bags can be reused, and a range of other products are being developed, including disposable cups with lids, straws, takeaway containers, cutlery, mailer bags and pet waste bags in the pipeline.
Cassava Bags was recently awarded the Bupa Global Plastic Innovation Award, which underscores its commitment to driving sustainability.
The company earns revenue from direct sales, partnerships with distributors, licensing and via research and investment. It is committed to the United Nations Sustainable Development Goals.
It’s also diversifying its revenue channels and expanding partnerships to enable it to capture sustainable market share and foster further growth. The company has a strong commitment to building a profitable business through creating sustainable, earth-friendly solutions. “And when our products are no longer needed, they can be dissolved in water safely or composted, leaving no toxins or microplastics behind,” Lau says.
“We invest heavily in research and development to improve our products and create new sustainable options. We offer comprehensive solutions that cover all aspects of sustainable product development and delivery,” Lau says.
“The continuous development of new products and our ongoing collaborations with partners across various industries are key parts of our growth strategy and not only broaden our reach, but allow us to contribute more significantly to the broader push towards better sustainability efforts,” he says.
“Our approach is aligned with the growing demand for eco-friendly products and practices, positioning us for success in the global marketplace.”
Through our ongoing research and development efforts, strategic partnerships and dedication to the United Nations Sustainable Development Goals, Cassava Bags Australia is well positioned to drive growth and make a positive impact on society and the environment,” Lau says.
Initially, the co-founders self funded their innovative product line, blowing through their collective personal finances and securing loans from family and friends, which they knew wasn’t sustainable for long-term growth. “This business always had massive potential. We just needed to fund the growth to get there,” Lau says.
The team approached a few banks in search of a business loan, but because they weren’t yet operational, they were turned away.
“We were looking for some sort of investment because we really believed in our products and wanted to make a start. We knew we had a great case for investors who were keen to be part of our journey.”
Eventually, the team approached Birchal and instantly found their crew. “We were buoyed by the idea of getting like-minded people on board. We could see Birchal was a great way to build a community,” Lau says.
Cassava Bags advice & insights
Be clear on market size
Our approach is aligned with the growing demand for eco-friendly products and practices, positioning us for success in the global marketplace.
Think outside the box
Be creative in an equity crowdfunding campaign in how you reach and engage both existing client lists and new investors.
Be relentless in your effort
Jump on the media and be relentless with communicating with existing clients and with building your marketing lists to ensure a successful campaign.
“We raised just shy of $600,000 the first time, which gave us a pool for some further research and development so we could improve our product. We also created a water resistant range, and developed custom solutions for a range of companies and organisations striving for greater sustainability targets,” Lau says.
A second equity crowdfunding raise with Birchal added a further $761k towards propelling the company towards an exciting future of global expansion. “We had such a great experience last time that we wanted to come back. We know that as a company, we present a great opportunity in terms of increasing profit share and hopefully one day bringing back a good return through dividends,” Lau says.
The goal is simple: get the product into the hands of new customers, and secure new distribution deals. “We realise there’s a lot more potential there, and we’ve just got to spread the word about what we’re doing, which will open up new avenues for us,” he says.
Cassava Bags has prevented about 1,000 tonnes of single use plastic being circulated in the economy, and has made around $800,000 in revenue since its first equity crowdfunding campaign in early 2022.
Of course, there have been plenty of hurdles along the way. Like so many businesses, timing the payments after an order has been placed by a customer can often leave them without cash flow for up to 90 days, which is no mean feat for a startup.
Balancing this issue takes time to perfect, he says.
“The second hurdle is pricing. We’re three or four times dearer than plastic purely due to the nature of our product, so it can take some time to prove our worth with some customers,” he says.
“We learned that it’s really important to get out there, and think outside the box during a crowdfunding campaign. If you have existing clients, jump on the media and be relentless with your market and build your marketing lists to ensure a successful campaign.
Bolstering the number of investors behind the brand will enable the team to start purchasing much larger quantities of the raw materials in the products, which will drastically bring down the cost of the product. “This makes it much more affordable for everyone to use,” he says.
While there are of course a range of sustainable packaging players in the market, the growth of Cassava Bags only helps to grow the broader pie. In some ways, the industry is quite different, because the main focus here is not to make money, but to save the planet,” Lau says.
