Sustainable packaging in Australia: Everything you need to know

In today’s world, “sustainability” is more than just a buzzword, in fact, it should be a crucial consideration across all industries – especially when it come to packaging.

Sustainable packaging focuses on minimising the environmental impact of both the packaging your business uses as well as the way the products you sell are packaged – from raw material sourcing to production, distribution, and end-of-life disposal.

Here’s what you need to know about sustainable packaging:

What is sustainable packaging?

Sustainable packaging is any type of eco-friendly material used to wrap, store, ship or shelve products. Designed to have a minimal negative impact on the environment, it uses materials that are renewable, recyclable, or biodegradable, as well as minimises the amount of packaging used.

Some common types of sustainable packaging include:

Recyclable materials: Paper, cardboard, glass, and some types of plastic can be recycled into new products.

Biodegradable materials: Materials like cornstarch, bamboo, and sugarcane can decompose naturally without harming the environment.

Reusable materials: Containers, bags, and other packaging that can be used multiple times.

Australian regulatory compliance

In 2018 Australia established the National Packaging Targets, that aimed to make all packaging reusable, recyclable, or compostable by 2025.

The four targets are:

• 100% reusable, recyclable, or compostable: All packaging must meet this criteria.
• 70% of plastic packaging recycled or composted: A specific focus on plastic due to its environmental impact.
• 50% average recycled content: Encourages the use of recycled materials in packaging (this has been revised up from 30% in 2020)
• Phase out of problematic and unnecessary single-use plastic: Aims to reduce reliance on such packaging.

APCO Australian Packaging Covenant Organisation) is responsible for hitting these targets through industry collaboration and guidance. You can seeing how the country is tracking against these targets here: https://apco.org.au/national-packaging-targets 

The Australian regulations emphasise designing packaging for recovery, reuse, recycling, and reprocessing, aligning with circular economy principles.

Where to find more information:

Australian Packaging Covenant Organisation (APCO): https://apco.org.au/
Australian Government: https://www.dcceew.gov.au/

Why is sustainable packaging good for business?

Aside from the obvious – doing the right thing for the environment and reducing the footprint of your business – sustainable packaging can bring several benefits to your business:

1. Enhances your brand’s image

Most customers are becoming ever more eco-conscious and will prioritise sustainability. By using eco-friendly packaging, you are demonstrating your commitment to environmental responsibility to those customers. By introducing sustainable practices, including using sustainable packaging, you can only improve your brand’s reputation and build trust with the your customer base.

2. Increases customer loyalty

By offering sustainable packaging you’ll build a loyal customer base. Customers who value sustainability are more likely to become repeat customers and brand advocates when they know that your business takes sustainability seriously with action.By using sustainable packaging, you can also set yourself apart from your competitors and give your business a competitive edge.

3. Cost savings

While there’s no denying that the old plastic bag is cheap to buy, there are some cost benefits from choosing to use sustainable packaging:

• Lighter and less packaging can result in lower shipping costs
• Less waste produced by your business means you’ll have lower disposal costs

This article was originally published in July 2019 and has been updated.

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