Australia’s food and beverage (F&B) industry is at a crucial turning point in its move toward sustainable packaging. Increasing regulatory requirements, rising consumer expectations, and mounting environmental pressures are accelerating the shift away from the traditional linear “take–make–dispose” approach toward a circular economy model. This transition is not only environmentally necessary but also presents substantial commercial potential for innovation, efficiency, and value generation.
Sustainable packaging has become a priority across the entire value chain. The Sustainable Packaging Trends Report published by Australia’s Food and Beverage Accelerator (FaBA) serves as a practical guide for this transformation. It highlights 12 major trends grouped into four priority areas that are influencing the future of packaging in Australia. The following overview examines these trends and outlines compliance considerations for industry stakeholders operating in this rapidly changing environment.
Priority Area 1: Waste Governance for Sustainable Development
This priority area addresses the policy- and regulation-driven forces pushing the sector toward systemic change, from global commitments to domestic regulatory frameworks.
Trend 1: Strengthening Packaging Waste Regulation
Packaging regulation is becoming increasingly stringent and multifaceted. Governments are deploying measures such as bans on single-use plastics, environmental levies, and Extended Producer Responsibility (EPR) programs. EPR policies require producers to take responsibility for their products beyond consumer use, including end-of-life management. In Australia, the Australian Packaging Covenant Organisation (APCO) has embedded EPR principles into its 2030 Strategic Plan, with eco-modulated fees intended to finance the recovery of difficult-to-recycle materials.
Trends 2 and 3: Pollution Prevention and Systemic Transformation
Momentum is building at both international and national levels. Australia is actively involved in negotiations for a legally binding United Nations Plastic Treaty, anticipated by 2025. At the national level, APCO is driving coordinated action through tools such as the Sustainable Packaging Guidelines (SPGs) and the Australasian Recycling Label (ARL), which promote consistency, transparency, and stakeholder education.
Trend 4: Unlocking Economic Value Through Circularity
The economic case for circular systems is becoming clearer. According to the report, approximately AUD 900 million worth of recyclable material was sent to landfill in 2021–22. Government programs such as the Recycling Modernisation Fund aim to expand recycling infrastructure and reposition waste as a valuable resource rather than a cost burden.
Priority Area 2: Circular Packaging Design
This area shifts the focus from policy to implementation, emphasising packaging design that supports circular outcomes.
Trend 5: Designing for Recycling
Recyclability remains the foundational requirement for sustainable packaging. Emphasis is placed on aligning designs with existing mechanical recycling systems by prioritising mono-material structures and eliminating problematic elements such as certain pigments, labels, and adhesives.
Trend 6: Designing for Compostability
Compostable packaging is gaining relevance, particularly were food contamination limits recyclability. In Australia, products labelled as compostable must comply with strict standards, such as AS 4736 for industrial composting. Unsupported “biodegradable” claims pose significant regulatory and reputational risks.
Trend 7: Designing for Reuse
Reusable and refillable packaging models are expanding, including refill-at-home, refill-on-the-go, return-from-home, and return-on-the-go systems. While these approaches require substantial operational changes, they offer a pathway to eliminating single-use packaging altogether.
Priority Area 3: Packaging’s Role in Sustainable Food Life Cycles
This priority area extends beyond disposal to consider packaging’s impact throughout the product life cycle, including food waste prevention and emissions reduction.
Trends 8 and 9: Reducing Food Waste and Carbon Emissions
Balancing reduced packaging with food protection remains a key challenge. Packaging plays a critical role in preserving food quality and extending shelf life, thereby reducing food waste. At the same time, companies face growing pressure to lower Scope 3 greenhouse gas emissions associated with packaging materials, production, and transport. Lightweight designs and increased recycled content are among the primary mitigation strategies.
Trend 10: Enabling Informed Consumer Choices
Sustainability considerations increasingly influence consumer purchasing behaviour. On-pack ESG-related claims can drive sales growth, but they also carry heightened risks of greenwashing. Regulators are intensifying oversight, requiring all environmental claims to be accurate, substantiated, and transparent.
Priority Area 4: Technological Innovation in Sustainable Packaging
Advances in technology are opening new pathways for material recovery and alternative feedstocks.
Trend 11: Next-Generation Recycling Technologies
Advanced and chemical recycling technologies are emerging as solutions for materials that are difficult to recycle mechanically, such as soft plastics. These processes break polymers down into their base components, enabling the production of high-quality, food-grade materials. Australian companies, including Samsara, are already leading innovation in this field.
Trend 12: Bio-Based Packaging Innovation
A growing range of packaging materials derived from renewable sources—such as sugarcane by-products, cassava starch, and mycelium—are entering the market. While bio-based materials can reduce dependence on fossil fuels, it is essential to differentiate between “bio-based” and “biodegradable,” as these characteristics do not necessarily overlap.
Compliance Guidance for Industry Stakeholders
In light of these trends, food and beverage companies should take strategic actions to manage compliance risks and capture emerging opportunities.
Build Collaborative Partnerships
Addressing packaging sustainability requires collaboration across the value chain. Companies should work closely with material suppliers, recyclers, researchers, and policymakers to share expertise, co-invest in infrastructure, and scale effective solutions.
Adopt a Systems-Based Approach
A circular economy depends on collective responsibility. Organisations should align objectives across stakeholders and support business models—such as EPR frameworks—that fairly distribute costs and rewards while encouraging sustainable design.
Use Data and Digital Solutions
Digital technologies are critical enablers of circular systems. Tools such as blockchain for traceability, smart sensors for food quality monitoring, and AI-driven recycling and material design can significantly improve efficiency and transparency.
Invest in Research and Development
Sustainability trade-offs should be treated as innovation opportunities. R&D investments in areas such as edible packaging, concentrated products, and packaging derived from agricultural waste can address multiple challenges at once.
Scale Up Proven Solutions
To deliver real impact, successful pilots must be expanded into mainstream practice. This requires rethinking business models, investing in scalable reuse and recycling technologies, and overcoming barriers related to cost, infrastructure, and market adoption.
