How to Make Your Packaging More Eco-Friendly?
Now here is the question most Australian operations have been putting off. Not because the answer is hard to find but because acting on it feels like a disruption to everything already running smoothly on the floor. So what if the real disruption is not switching to eco friendly packaging, but waiting until the regulations force the change on a timeline that does not suit your operation? Starting in 2026, Australia’s National Packaging Regulations move from voluntary to mandatory. Compliance is no longer optional. Businesses that have been relying on voluntary APCO participation as their compliance position will need to reassess and the time to do that is now, not when the enforcement notice arrives. The sustainable packaging market in Australia reached USD 13.6 billion in 2025 and is projected to reach USD 24.6 billion by 2034. IMARC Group 2025 This is not a fringe trend. It is a structural shift in how Australian packaging works and here is what that means for your operation and where to start.
What Is Eco-Friendly Packaging and Why Does It Matter for Australian Businesses in 2026?
Eco friendly packaging is packaging designed to minimise environmental impact across its full lifecycle from raw material sourcing and manufacturing through to end of life recovery. In the Australian context, eco friendly packaging meets one or more of three criteria established by APCO: it is reusable across multiple cycles, recyclable through existing Australian recovery infrastructure, or compostable through industrial or home composting facilities.
Eco friendly packaging matters for Australian businesses in 2026 because compliance has shifted from voluntary to mandatory. New National Packaging Regulations taking effect in 2026 require businesses to meet APCO’s sustainability targets 100% reusable, recyclable, or compostable packaging and 70% plastic recycling rate. Operations that have not begun transitioning face regulatory risk, retail supplier requirements, and the commercial pressure of 51% of Australian consumers now prioritising sustainability in purchasing decisions.
Now if we look at the consumer side of this, the numbers are significant. Industry Today 2025 reports that 51% of Australian shoppers now prioritise sustainability in purchasing. And here is the thing that preference is not sitting quietly in consumer surveys. It is showing up in retailer requirements. Woolworths and Coles have both made public commitments to eliminate problematic plastics and increase recycled content from their supplier base. So what happens when your retail buyer starts asking for your packaging sustainability credentials and your operation has not yet started the transition?
What Are the Three Main Types of Eco-Friendly Packaging and Which Is Right for Your Operation?
The three main types of eco friendly packaging are reusable packaging designed for multiple cycles, recyclable packaging that enters existing Australian recovery streams, and compostable packaging that breaks down under specific conditions. For most Australian warehouse and manufacturing operations, recyclable is the most practical starting point as it requires no new recovery infrastructure. Reusable suits closed loop supply chains. Compostable suits food service and fresh produce where industrial composting access exists.
Reusable Packaging
Designed for multiple cycles in manufacturing, warehousing, and transport bins, tanks, pallets, and returnable containers. Higher upfront cost, lower cost per cycle over time. Best suited to closed loop operations where packaging is recovered and returned. The circular economy model is developing rapidly as businesses implement returns programs and refill systems across Australian supply chains.
100% Recyclable Reusable Kraft Paper Bag — Eco Friendly Sustainable Packaging Australia | Gateway Packaging
Recyclable Packaging
Made from materials that can be collected and processed through existing Australian recycling infrastructure paper, cardboard, glass, some plastics, and aluminium. The most practical transition path for most Australian operations because it uses infrastructure already in place. Domestic reprocessing capacity has nearly doubled since 2018-19, from 1.85 million tonnes to 3.45 million tonnes. Waste Management Review 2024
Compostable Packaging
Breaks down into natural elements under specific industrial or home composting conditions. Important distinction compostable and biodegradable are not the same. Biodegradable materials require microorganisms to break them down and have no defined timeline. Compostable materials have a certified breakdown timeframe but require access to industrial composting facilities, which remain limited across Australia outside metropolitan areas. Australia’s biodegradable packaging market reached USD 2.148 billion in 2024. IMARC Group 2024
💡Now here is the part of this conversation most operations miss. What if minimising packaging is actually more impactful than switching materials? The average Australian consumer uses 146 kilograms of packaging per year 111kg at home and 35kg away. Waste Management Review 2024 Business to business packaging adds another 116kg per person. So before switching every material, the first question worth asking is: does your product actually need as much packaging as it currently uses? Minimising the amount of packaging is the fastest, cheapest, and most impactful first step and it reduces the volume of material that needs to be made recyclable or compostable.
How Can Australian Operations Practically Transition to More Eco-Friendly Packaging
1. Minimise first reduce packaging before switching materials
Now here is where to start. Before ordering eco friendly alternatives, audit what your operation currently uses. Assess each product for its actual protection needs during transit. What if reducing the amount of packaging is achievable without reducing protection? Smaller cartons, less void fill, right sizing the packaging to the product each of these reduces material cost, storage footprint, and the volume of packaging that needs to be made recyclable or compostable.
2 Trial alternatives before committing to full-scale switch
So what happens when an operation orders eco friendly alternatives in bulk before testing them? The materials arrive, do not perform the way standard materials did, and the operation either absorbs the cost or switches back. The correct approach is to order samples, trial them in real operational conditions, and assess performance on your actual loads and surfaces before committing. Gateway Packaging’s team can help identify the right alternatives for each specific application before the switch.
3 Replace standard plastics with recyclable alternatives by application
Now think about each plastic component in your current packaging operation one at a time. Replace standard bubble wrap with Phoenix recyclable bubble film with 50% recycled content. Replace plastic void fill with honeycomb paper wrap or BioFill. Replace plastic acrylic tape with water activated kraft tape that recycles with the carton. Replace plastic poly mailers with paper padded mailers. Each switch reduces plastic in the packaging stream without requiring an operation wide overhaul.
Electric Water Activated Tape Dispenser — Eco Friendly Kraft Paper Tape Machine for Australian Warehouse Carton Sealing | Gateway Packaging
4 Label packaging clearly for its reuse and recycling options
What if your customers and supply chain partners do not know which parts of your packaging can be recycled? Recyclable packaging that ends up in general waste because it was not labelled is still packaging that goes to landfill. Adding clear “how to recycle” or “how to reuse” labels helps downstream recipients make the right disposal decision. Australian Recycling Label program guidelines are available through APCO for operations that need standardised labelling. Ask your supplier whether print options are available on packaging materials before ordering.
5 Explore stretch film efficiency and thin gauge options
Now here is one that gets overlooked in the sustainability conversation. Eco friendly stretch films with up to 30% post industrial recycled content reduce virgin plastic use without changing the wrapping process. Paxum® Nano thin gauge film at 15um can reduce film consumption by up to 65% per pallet compared to standard film. Less film per pallet means less plastic placed on market per cycle a direct, measurable contribution toward APCO compliance that does not require a new machine or a new process. Gateway Packaging
How Do Reusable, Recyclable, and Compostable Packaging Compare for Australian Operations?
| Packaging Type | Best Application | Infrastructure Required | Upfront Cost | APCO Compliant | Practical for Most Operations |
|---|---|---|---|---|---|
| Reusable | Reusable: Closed-loop supply chains, B2B transport | Reusable: Returns and recovery system | Reusable: Higher | Reusable: Yes | Reusable: Closed-loop only |
| Recyclable paper and cardboard | Recyclable paper and cardboard: Carton sealing, void fill, mailing | Recyclable paper and cardboard: Existing kerbside and commercial | Recyclable paper and cardboard: Comparable | Recyclable paper and cardboard: Yes | Recyclable paper and cardboard: Yes most practical |
| Recyclable soft plastics | Recyclable soft plastics: Stretch film, bubble film | Recyclable soft plastics: Soft plastics drop-off or commercial | Recyclable soft plastics: Comparable | Recyclable soft plastics: Yes | Recyclable soft plastics: Yes with recycled content |
| Compostable | Compostable: Food service, fresh produce, retail | Compostable: Industrial composting facility | Compostable: Higher | Compostable: Yes | Compostable: Where composting access exists |
| Biodegradable | Biodegradable: Limited verify conditions | Biodegradable: No standard infrastructure | Biodegradable: Varies | Biodegradable: Verify per product | Biodegradable: Limited without industrial process |
What Australian Regulations Apply to Eco-Friendly Packaging in 2026?
2026 Mandatory Packaging Regulations What Changes Now
Now here is the regulatory change that moves this from a nice to have into a business obligation. Starting in 2026, Australia’s National Packaging Regulations shift from a voluntary APCO participation model to mandatory compliance. Businesses will be required to report packaging data, design packaging for recovery, and meet established sustainability benchmarks. APCO’s role transitions from advisory to enforcement. Grounded Packaging 2025
The four National Packaging Targets that now carry mandatory weight are: 100% of packaging reusable, recyclable, or compostable; 70% of plastic packaging recycled or composted; 50% average recycled content in packaging; and phase out of problematic and unnecessary single use plastic packaging. APCO National Packaging Targets For Australian operations that have not yet begun transitioning, the regulatory timeline has arrived. The question is whether the transition happens on your terms or on a deadline that disrupts your operation.
Gateway Packaging’s Eco-Friendly Solutions for the 2026 Transition
Gateway Packaging Sustainable Solutions Range
Gateway Packaging’s full eco products range covers every transition from standard plastic packaging to APCO compliant alternatives. For protective packaging, Phoenix bubble film with 50% recycled content and 100% recyclable replaces standard bubble wrap. For void fill, Honeycomb Paper Wrap and BioFill void fill eliminate plastic from the protection stream entirely. For carton sealing, water activated kraft tape is tamper evident, plastic free, and fully recyclable with the carton.
For pallet wrapping, eco friendly stretch films with up to 30% post industrial recycled content reduce virgin plastic per pallet without changing the wrap cycle. For cold chain applications, the cold chain solutions range covers gel packs, insulated carton liners, thermal bags, and ThermaWeave pallet covers to replace polystyrene.
For void fill, air cushion films and the air cushion machine provide on demand protective packaging without single use plastic. Void fill paper and eco friendly wood wool provide natural fibre alternatives for wrapping and cushioning. For eco friendly tapes, sustainable packaging tape and sustainable warning tape replace standard PVC options. For mailing and despatch, paper padded mailers, bubble mailing bags, Ecolopes, and Jiffy utility bags replace plastic poly mailers. For packaging papers, kraft brown paper rolls and packaging paper provide biodegradable wrapping and void protection. Gateway Packaging’s team can assess your current packaging line and confirm the right eco friendly specification for each application before the switch. Visit Gateway Packaging’s sustainability page for the full range.
Key Takeaways
- Starting in 2026, Australia’s National Packaging Regulations shift from voluntary to mandatory. Businesses must meet APCO’s sustainability targets, report packaging data, and design packaging for recovery APCO moves from advisory to enforcement.
- Minimising the amount of packaging is the fastest and most impactful first step before switching materials. Reducing packaging volume lowers material cost, storage footprint, and the total volume that needs to meet recyclability requirements.
- Recyclable packaging using existing Australian recovery infrastructure is the most practical transition path for most operations. Paper, cardboard, and kraft-based materials recycle through infrastructure already in place without requiring new facilities.
- Compostable and biodegradable are not the same specification. Compostable packaging has a certified breakdown timeframe under industrial composting. Biodegradable has no defined timeline and may not break down without the right conditions.
- 51% of Australian consumers now prioritise sustainability in purchasing decisions, and major retailers including Woolworths and Coles have committed to requiring sustainable packaging credentials from their supplier base. The commercial case for the transition exists independently of the regulatory case.
Key Statistics
- $13.6B – Australian sustainable packaging market in 2025, projected to reach $24.6B by 2034 at 6.84% CAGR IMARC Group 2025
- 51% – of Australian shoppers prioritise sustainability in their purchasing decisions in 2025 Industry Today 2025
- 146kg – of packaging used per Australian consumer per year 111kg at home and 35kg away from home Waste Management Review 2024
The transition to eco friendly packaging is no longer a future planning item for Australian operations it is a 2026 compliance requirement. The practical steps are available, the product alternatives are stocked, and the regulatory direction is confirmed. Gateway Packaging supplies the full range of APCO aligned eco-friendly packaging alternatives for Australian warehouse, manufacturing, FMCG, and logistics operations, with the expertise to match the right sustainable specification to every application on your floor.
Q1: What is eco-friendly packaging and what makes it different from standard packaging?
Eco friendly packaging is designed to minimise environmental impact across its full lifecycle. In Australia, it meets one or more of three APCO criteria: reusable across multiple cycles, recyclable through existing Australian recovery infrastructure, or compostable under industrial or home composting conditions. Standard packaging has no requirement to meet any of these criteria. From 2026, meeting APCO’s criteria moves from voluntary to mandatory under new National Packaging Regulations.
Q2: What is the difference between compostable and biodegradable packaging?
Compostable packaging has a certified breakdown timeframe under controlled industrial or home composting conditions and must meet Australian Standard AS 4736. Biodegradable packaging breaks down through microbial action but has no defined timeline and may require specific conditions unavailable in standard disposal. For APCO compliance, compostable is the more credible and verifiable specification. Biodegradable claims without certification should be verified carefully against current Australian standards.
Q3: When do Australia’s mandatory packaging regulations take effect and what do they require?
Australia’s new National Packaging Regulations take effect in 2026, shifting APCO compliance from voluntary to mandatory. Businesses will be required to report packaging data, design packaging for recovery, and meet established sustainability benchmarks including 100% reusable, recyclable, or compostable packaging and 70% plastic packaging recycled or composted. APCO transitions from an advisory body to an enforcement mechanism under the new framework.
Q4: What is the most practical first step for an Australian operation transitioning to eco-friendly packaging?
The most practical first step is minimising packaging volume before switching materials. Auditing current packaging against actual protection requirements often reveals over-packaging that can be reduced without compromising product safety. After minimising, switching individual plastic components to recyclable alternatives one at a time — bubble wrap, void fill, tape, mailers — is more manageable than a full operation overhaul and allows performance testing before full commitment.
Q5: What eco-friendly packaging alternatives does Gateway Packaging supply for Australian operations?
Gateway Packaging’s eco products range covers Phoenix bubble film with 50% recycled content, honeycomb paper wrap and BioFill void fill, water activated kraft tape, eco friendly stretch films with recycled content, paper padded mailers, Jiffy utility bags, cold chain solutions including ThermaWeave pallet covers, eco friendly wood wool and packaging papers, and compostable and kraft paper tapes. All are APCO aligned and stocked for same day despatch across Australia.
The Bottom Line
Now here is where this lands. 2026 is not a future consideration it is here. The mandatory regulations are in effect, the consumer pressure is real, and the retail supplier requirements are tightening. Gateway Packaging supplies the eco friendly alternatives that make the transition practical. Start with one application, trial the alternative, confirm it performs, and switch. One conversation with the Gateway Packaging team gets that process started.
Ready to transition to eco-friendly packaging before the deadline?
Tell Gateway Packaging’s team which plastic packaging components your operation currently uses. We will identify the right APCO compliant alternatives and confirm performance and cost before you commit to the switch.
Disclaimer: Market statistics sourced from IMARC Group Australia Sustainable Packaging Market 2025 (imarcgroup.com), Industry Today Australia Sustainable Packaging Market 2025 (industrytoday.co.uk), IMARC Group Australia Biodegradable Packaging Market 2024 (imarcgroup.com), and Waste Management Review APCO Report 2024 (wastemanagementreview.com.au). Regulatory information regarding 2026 National Packaging Regulations is sourced from Grounded Packaging APCO 2030 Strategy 2025 (groundedpackaging.co) and APCO National Packaging Targets (apco.org.au). This content is summarised for general context only and does not constitute legal or regulatory advice. Consult apco.org.au for current membership, reporting, and compliance obligations applicable to your operation.