The invention relates to new thermoplastic polymer compositions, primarily using biodegradable polycaprolactone (PCL) and protein hydrolysate from leather industry waste, ideal for creating compostable products with performance and cost similar to traditional non-biodegradable materials. This novel composition enhances processability without requiring compatibilizing additives, leading to high-performance, homogeneous products suitable for various applications such as films, tubes, and bags. The research aims to improve environmental sustainability in the tanning industry by integrating polymer production with waste valorization, offering significant market advantages for low-impact materials.