What’s the future of sustainable packaging in Australia?

To make this happen, the government has introduced key policies:

• National Plastics Plan 2021: Bans the export of unsorted mixed plastic and phases out PVC packaging labels.
• Australasian Recycling Label (ARL): By the end of 2023, 80% of supermarket products were expected to carry this easy-to-understand recycling label. The ARL has also been rolled out to business-to-business packaging, which accounts for 27% of plastic packaging in Australia.
• Recycling and Packaging Regulations Reform (2024): Exploring the best way to reform Australia’s packaging regulations to minimise packaging waste and pollution and build a circular economy for packaging.
• State-based legislation: States have also introduced their own laws and regulations, such as the impending ban on plastic produce-stickers in South Australia.

However, in 2025, it’s clear that the goals remain out of reach.

That said, thereis some good news. Currently, 86% of all packaging in Australia can be recycled, which is a bit shy of the 100% target, according to figures released in December. Recycled content has reached 40%, compared with the 50% goal.

While paper, metal and glass are performing well, plastic remains a challenge. Only around 10% of plastic packaging contains recycled content, and 19% of plastic packaging is recycled – well below the 70% target.

Jennifer Macklin from Monash University’s Sustainable Development Institute said the goals were “ambitious”.

“If you think about taking the multitudes of different types of packaging – packaging on your household food and groceries from a supermarket, packaging on what businesses receive,or even packages in the health and medical sectors – it’s used across our entire economy.

“That's a huge shift to make in seven years to change how that packaging is designed [and] what it’s made from in order to be 100% recyclable.”

But this isn’t the end. APCO has unveiled a 2030 Strategic Plan, which includes financial incentives for members who incorporate sustainability into their packaging designs by using recycled content and the right materials.

At the same time, the Australian Government is ramping up regulation reforms to reduce waste, increase recycling ratesand foster a circular economy. For example, the Department of Climate Change, Energy, the Environment and Water (DCCEEW), has proposed banning, or phasing out, chemicals and materials that impede recyclability.

• Recycling infrastructure: Australia still lacks facilities to process many sustainable materials. Our local recycling capabilities aren’t set up to efficiently handle new materials, such as compostable plastics, and we rely heavily on exporting waste for processing.
• Consumer confusion: Many consumers don’t know what can and can’t be recycled. Issues such as date labelling also contribute to food waste. This confusion leads to contamination and wasted effort in recycling, making it harder for businesses to meet sustainability goals. Brands that invest in sustainable packaging need to invest in educating consumers as well.
• Supply chain issues: Sourcing sustainable materials at scale is tricky. Some businesses are also concerned about performance. For example, fibre-based packaging and compostable materials often need additional coatings to maintain product freshness, which can impact recyclability.

Ultimately, overcoming these obstacles will require a coordinated approach, balancing cost, supply chain solutions and consumer education.

• Refillable & reusable models: Nestlé’s high-barrier paper refill packs allow customers to refill their glass Nescafé jars at home, reducing packaging weight by 97%. Refill stations in supermarkets and retail outlets are expected to expand, and subscription services for refillable products will become more common.The World Economic Forum’s Future of Reusable Consumption Report recorded a rise in global patent filings for refill innovations and predicted that companies embracing refill solutions will benefit financially as consumers feel “a deeper sense of connection with brands, particularly those associated with admired principles of sustainability”.
• Plastic alternatives: Aussie startup Great Wrap has developed compostable stretch wrap made from food waste, and brands are exploring seaweed-based films to replace plastic snack packaging. Meanwhile, researchers in Japan have developed a durable plastic that dissolves in water.

How do these innovations play out in the real world? See how these seven brands are pioneering eco-friendly packaging.

The role of technology in sustainable packaging

Technology is driving big improvements in sustainability, reshaping how packaging is designed, used, and disposed of.

Unsurprisingly, one of the key technologies driving change is artificial intelligence. AI-powered design tools are helping brands test different materials and optimise packaging to reduce waste. Machine-learning algorithms are being used to analyse data to determine the most efficient use of packaging materials. For instance, these AI systems can optimise box sizes and material usage and predict performance metrics for different designs.

For example, an AI model created by Amazon called The Package Decision Engine is able to determine the most efficient type of packaging for each item it learns about, which helps reduce the number of cardboard boxes, air pillows, tape and mailers used to send purchases to customers.

Another technology making waves is blockchain. Brands can use blockchain to authenticate their environmental claims, for instance, by providing verifiable data on sourcing and processing of packaging materials. This transparency strengthens brand reputation and loyalty in a market increasingly wary of greenwashing.

Then there’s connected packaging. This offers a direct channel for brands to educate consumers on proper recycling or disposal methods while promoting the brand’s environmental efforts. By scanning QR codes on the packaging, consumers can instantly access sustainability information, recycling instructionsand interactive content about the environmental benefits of sustainable packaging.

For example, Mondelez is using on-pack QR codes to send customers to Snacking Right, a site that explains the company’s sustainability progress and how everyone can play a role in reducing their environmental impact. The site provides consumers with information about how to recycle, as well as stories about the dairy-farming families that supply fresh milk to the Cadbury brand.