This article first appeared in the February 2025 issue of ProPack.pro, authored by APCO’s Chris Foley
The packaging industry faces several significant challenges in 2024, including navigating an increasingly complex regulatory landscape, managing the costs associated with sustainable packaging, and overcoming technical barriers in recycling processes.
Additionally, there is a critical need for investment in domestic infrastructure, particularly in recovery systems, to support a more circular economy.
Despite the change that still lies ahead, 2024 demonstrated the industry’s resilience and collective determination to build a thriving circular economy for packaging in Australia and beyond. To maintain momentum in 2024, many businesses took proactive steps to align with evolving consumer and regulatory expectations around sustainability.
A significant milestone was the widespread adoption of the Australasian Recycling Label (ARL), with more than 1,000 businesses now part of the program and more than 500,000 SKUs featuring the ARL across Australia and New Zealand.
In response to the collapse of soft plastic recycling, businesses stepped up to develop innovative solutions. The Soft Plastic Taskforce, led by Woolworths, Coles, and Aldi is trialing new in-store collection systems in Melbourne, Sydney, and Newcastle to create a scalable model for a nationwide rollout. Similarly, the Australian Food and Grocery Council’s National Plastics Recycling Scheme (NPRS) is piloting kerbside soft plastic collection in select regions to assess the collection of soft plastic packaging via recycling/ yellow lid bins and other methods.
In 2024, the ANZPAC Plastics Pact also achieved a major milestone by securing funding to launch Circular Pacific Plastics, a project addressing waste management in the Pacific Island nations.
2025 will continue the trends seen in 2024, with greater emphasis on moving early and quickly to get ahead of emerging mandates, standards and regulatory reform. Some predictions on what we’ll see include:
Preparing for packaging mandates:
In 2025, businesses will have an increased focus on packaging design standards ahead of emerging mandates. Traceability and data will become critical, ensuring compliance and enabling informed decisions as regulations take effect.
Now is the time for businesses to use the Sustainable Packaging Guidelines (SPGs) to assess their packaging.
PFAS in packaging: PFAS (per- and polyfluoroalkyl substances) will remain a key area of focus. These fluorinated compounds are widely used in applications, but their resistance to degradation makes them significant environmental pollutants. When used in compostable packaging, PFAS also disrupt organic waste streams. APCO will continue to lead industry efforts on this issue, with the release of a PFAS Discussion Paper outlining the next steps for a national phase-out. As public attention on PFAS shifts from water contamination to packaging, industry action will follow.
Recycled content on the rise: The demand for recycled content in packaging will continue to grow, driven by both consumer expectations and legislative pressures. However, barriers such as price and adoption will still pose challenges for the industry. The 2030 Strategic Plan will look to address these barriers for brand owners and packaging manufacturers.
Businesses should commit to three key actions in 2025:
- Use APCO’s SPGs to review their existing packaging or design and specify new packaging: Brand owners are encouraged to explore circular solutions, such as reusable systems and closed-loop recycling, while collaborating with stakeholders across the supply chain to achieve sustainable outcomes and meet regulatory requirements. Ultimately, packaging should balance sustainability with functionality, accessibility, and clear communication to support consumers in making sustainable choices.
- Apply the ARL on packs to help consumers dispose of the used packaging: The ARL helps consumers dispose of packaging correctly by providing clear, consistent guidance for each packaging component. By reducing confusion, the ARL improves recycling rates and supports a circular economy.
- Improve their packaging data collection and traceability: This ensures compliance with upcoming mandated packaging design standards and recycled content laws. Accurate data is critical to demonstrate compliance, support eco-modulated fees, identify improvement opportunities and enhance credibility.
In 2025, APCO’s main priority will be supporting our members and the broader packaging industry to lay the groundwork for implementation of the APCO 2030 Strategic Plan, unveiled in August 2024. This plan aims to provide economic incentives for material circularity and achieve National Packaging Targets.
A key focus will be member and system engagement to finalise our eco-modulated fee model, which will incentivise brand owners to eliminate or reduce packaging, adopt reuse models, and transition to recyclable materials and formats. Funds raised through this model will be strategically invested in overcoming economic barriers in the downstream recycling system, driving progress toward national packaging targets.
