AbstractBusinesses are turning to bio‐based, compostable plastic packaging as a circular economy solution to global plastic pollution. However, there is a lack of proper waste management systems for collection and processing. Through an international research initiative, a social innovation lab was undertaken in Brazil, Canada, Poland and the United Kingdom to understand and address key barriers in closing the bio‐based plastic packaging loop. Based upon a qualitative data set of 100 stakeholder interviews and three phases of workshop activities in each country, a grounded model was generated to illustrate how competing views and actions are inhibiting a circular system for bio‐based plastic packaging. Key issues were the lack of end‐of‐life processing infrastructure, contamination in processing facilities and absent or ineffective regulation. A systemic approach that includes shared responsibility for infrastructure, simplified packaging design and materials and equitable regulation to reduce susceptibility to greenwashing can improve collaboration to meet circular goals.