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A company has launched a fully compostable takeaway coffee cup which enables users to turn it into a pot plant as well.

The 'Grow Cup of Life' is accompanied by a 'Grow Kit' which includes a soil pellet and seeds for immediate recycling and planting either inside the home or outside.

The cup uses plant-based material for the thermal lining, making the cup 100 per cent biodegradable.

Once they rinse the cup, coffee drinkers can add the soil pellet and seeds, top with water, and watch the plant sprout. Once the seed has sprouted the whole cup can be buried in the ground or a pot.

The cup and kit was developed by Enviro-Grow to address the wastage caused by coffee cups.

One billion takeaway cups are used in Australia every year, and more than 90 per cent of those are sent to landfill.

The kit will initially be sold for $2.50 on top of the price of a coffee in various Melbourne cafes.

They are also being used by schools and community groups as a fundraising product.

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