Bio degradable packaging is not really suitable for composting yourself. Most of it takes a really long time to break down naturally or requires high composting temperatures that can be hard to achieve in a home compost pile. This is true even for basic stuff like cardboard and paper. You also need a lot of "green"[1] (high nitrogen) composting material to balance out cellulose from packaging.

The net result is that this is still an industrial process. Though probably less energy-intensive than recycling.

Source: we have a compost pile and it's not all sunshine and roses.

[1] https://www.thespruce.com/composting-greens-and-browns-25394...

They also sometimes coat your "compostable" bowls/plates/boxes in PFAS: https://www.cbc.ca/news/science/pfas-compostable-food-packag...