Australia Green Packaging Market

Australia Green Packaging Market Overview:

The Australia green packaging market size reached USD 5,424.00 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 8,060.58 Million by 2033, exhibiting a growth rate (CAGR) of 4.50% during 2025-2033. Government packaging mandates, compliance-driven procurement, circular economy participation, consumer eco-awareness, demand for recyclable and compostable materials, innovation in plant-based and biodegradable solutions, and retail sustainability alignment are some of the factors positively impacting the market.

Australia Green Packaging Market Trends:

Regulatory Pressure and Sustainability Mandates Across Supply Chains
Australia has implemented a clear roadmap for reducing environmental waste, with federal and state governments introducing strict policies focused on packaging sustainability. The 2025 National Packaging Targets, spearheaded by the Australian Packaging Covenant Organization (APCO), have made it mandatory for companies to adopt recyclable, compostable, or reusable packaging across all consumer goods sectors. Retailers, manufacturers, and importers are now compelled to shift away from single-use plastics and non-degradable materials, aligning procurement and production with certified sustainable alternatives. Industry collaboration has increased, with brands participating in circular economy programs and integrating closed-loop systems for packaging recovery. The Australian government's overhaul of packaging regulation, launched in 2024, aims for a circular economy and includes several key sustainability targets. By 2025, all packaging in Australia must be recyclable or reusable, and 70% of packaging will be recycled. Additionally, the Australian Packaging Covenant (APCO) is working towards increasing the recycled content in packaging, with 50% of packaging made from recycled materials by 2025. The new regulations also emphasize improving the recycling rate of packaging, with a particular focus on reducing single-use plastics and boosting waste management systems across the country. This regulatory environment has created not only compliance incentives but also competitive pressure, pushing both multinationals and domestic firms to redesign product packaging across food, beverage, cosmetics, and pharmaceuticals. Businesses are also responding to legal and reputational risks tied to non-compliance. As a result, the Australia green packaging market share has grown, supported by public-sector enforcement and rising stakeholder demand for visible environmental responsibility. Legislative backing, combined with active industry alignment, is positioning green packaging not just as an ethical choice, but a regulatory necessity embedded across supply chains.

Retail Rebranding, Eco-Consumer Demand, and Material Innovation
Major Australian retailers and consumer brands are actively reshaping their product strategies around environmental responsibility, directly addressing consumer expectations. Growing numbers of Australians now make purchase decisions based on a product’s environmental impact, including its packaging footprint. Together, these trends are advancing Australia green packaging market growth, particularly across foodservice, e-commerce, and FMCG sectors. This shift is accelerating the adoption of plant-based plastics, biodegradable films, compostable mailers, and recyclable board packaging across retail and logistics operations. Private label brands are also gaining traction by offering fully sustainable packaging at accessible price points, enhancing their visibility across mainstream supermarkets. These developments are further supported by investments in local R&D and collaboration with material science firms. Businesses are optimizing packaging formats to reduce weight, eliminate multi-material components, and use inks and adhesives with lower ecological impact. On March 24, 2025, Visy, Novelis, and Rio Tinto launched "Re-In-Can-Ation," a cross-industry initiative to promote sustainable packaging in Australia. The pilot phase aims to introduce 15 million sustainable cans, reducing carbon emissions by 1,235 tonnes. This initiative highlights the importance of increasing recycled aluminium content, with the goal of addressing Australia’s recycling challenges, where only 64% of aluminium cans are currently recycled. The project will help create a more sustainable packaging industry and advance Australia's circular economy goals. As scalable innovations reach commercial maturity and align with both brand messaging and price sensitivity, the Australia green packaging market outlook remains strong. Sustainability-driven consumer behavior, retailer accountability, and advancements in eco-materials will continue shaping the direction of packaging innovation.

Australia Green Packaging Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on packaging type and end use industry.

Packaging Type Insights:

• Recycled Content Packaging
  • Paper
  • Plastic
  • Metal
  • Glass
  • Others
• Reusable Packaging
  • Drum
  • Plastic Container
  • Others
• Degradable Packaging

The report has provided a detailed breakup and analysis of the market based on the packaging type. This includes recycled content packaging (paper, plastic, metal, glass, and others), reusable packaging (drum, plastic container, and others), and degradable packaging.

End Use Industry Insights:

• Food Industry
• Beverage Industry
• Healthcare Industry
• Personal Care Industry
• Others

The report has provided a detailed breakup and analysis of the market based on the end use industry. This includes food industry, beverage industry, healthcare industry, personal care industry, and others.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Green Packaging Market News:

• On July 16, 2024, SIG launched its recycle-ready bag-in-box packaging for water in Australia, marking a major sustainability achievement in the packaging sector. The new design, which eliminates aluminum, replaces it with SIG Terra RecShield, a recyclable material, and meets the Australian 2025 National Packaging Targets. This innovation aims to reduce plastic use and improve the recyclability of packaging, with the product expected to hit supermarket shelves by mid to late September 2024.
• On April 7, 2025, Ahlstrom received Home compostability certification from the Australasian Bioplastics Association for its Sulpack® product range. Sulpack® is a PFAS-free parchment paper developed for packaging applications like butter wraps and cheese interlayers, offering a natural grease barrier. This certification enables Ahlstrom's customers in Australia and New Zealand to meet sustainability goals and supports Ahlstrom's commitment to sustainable packaging solutions.

Australia Green Packaging Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia green packaging market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia green packaging market on the basis of packaging type?
• What is the breakup of the Australia green packaging market on the basis of end use industry?
• What is the breakup of the Australia green packaging market on the basis of region?
• What are the various stages in the value chain of the Australia green packaging market? 
• What are the key driving factors and challenges in the Australia green packaging?
• What is the structure of the Australia green packaging market and who are the key players?
• What is the degree of competition in the Australia green packaging market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia green packaging market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia green packaging market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia green packaging industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.