Why Sustainable Packaging Matters for Aussie Businesses in 2025

Why Sustainable Packaging Matters for Aussie Businesses in 2025

in News

In 2025, sustainable packaging isn’t just a buzzword—it’s a strategic necessity for Aussie businesses big and small. From meeting national targets and pleasing conscious consumers to cutting costs and future‑proofing your brand, greener packaging delivers real advantages. Here's why your business should be paying attention—right now.

1. Meeting Australia’s 2025 National Packaging Targets

The Australian Packaging Covenant Organisation (APCO) has introduced national targets to ensure packaging is:

100% reusable, recyclable or compostable

70% of plastic packaging recycled or composted

50% average recycled content

Phased-out problematic single-use plastics

As 2025 approaches, these targets are becoming more than just goals—they are being backed by stronger regulations. Businesses that fall behind risk facing penalties, losing competitive edge, and damaging consumer trust. Taking action now allows smoother compliance and long-term cost savings.

2. Australia’s Shift Towards a Circular Economy

Australia’s packaging strategy now emphasises circularity—designing products and packaging to remain in use as long as possible, reducing waste and environmental harm.

This approach includes:

Stronger governance and regulation

Designing for end-of-life reuse or recycling

Optimising product and packaging lifecycle

Adopting next-gen innovations like compostables and bio-based materials

For packaging providers like Evopack, that means offering solutions that are recyclable, compostable, or reusable from day one.

3. What Aussie Consumers Expect in 2025

Australian consumers are not only aware of environmental issues—they’re willing to pay more for solutions. Recent studies show that over 80% of global consumers support sustainable packaging, with Gen Z and Millennials leading the trend.

Consumer behaviours shaping the market:

Clear, honest labelling that shows how to dispose of packaging

Minimal, reusable, or refillable designs

Visible commitment to environmental standards

Inconsistent or misleading packaging confuses customers and weakens brand credibility. Smart, simple, and sustainable packaging helps build trust and drive repeat purchases.

4. Financial Benefits for Businesses

While some businesses fear that sustainable packaging is expensive, it can actually lead to long-term savings and better performance:

Lower material and waste disposal costs

Avoidance of fines or compliance fees

Access to sustainability grants and incentives

Reduced packaging size and weight improves shipping efficiency

Sustainable packaging is an investment that pays off—financially and reputationally.

5. Innovation Creates Brand Differentiation

Forward-thinking Aussie brands are embracing innovation to stand out from competitors. These are some emerging trends:

Bio-based and compostable materials: like PLA, paper, and seaweed packaging

Refill and reuse models: such as pouches or subscription-style packaging

Smart packaging: with QR codes for recycling instructions or traceability

Minimalist design: less packaging, more brand impact

These innovations don't just help the planet—they show your customers you’re one step ahead.

6. Avoiding Greenwashing

One of the biggest risks in 2025 is greenwashing—making environmental claims that can’t be backed up. To maintain credibility:

Use certified recyclable or compostable materials

Clearly label packaging with accurate disposal instructions

Avoid vague claims like “eco-friendly” unless supported by data

Communicate openly about your sustainability journey

A transparent approach helps customers connect with your values and stay loyal to your brand.

7. A Practical Plan for Aussie SMEs

If you're ready to make the switch, here’s a step-by-step guide to move toward sustainable packaging:

Audit your current packaging: Understand what you're using, and where waste occurs

Set realistic goals: Use APCO guidelines as your benchmark

Choose sustainable materials: Ensure they match product needs and disposal methods

Work with the right suppliers: Like Evopack, who specialise in eco-conscious packaging

Add clear disposal labels: Educate your customers on how to dispose of packaging properly

Test, learn, and adjust: Start small, collect feedback, and refine your designs

Promote your progress: Share your journey through marketing and product messaging

These actions don’t just improve your footprint—they show customers that you’re serious about change.

8. Aussie Brands Leading the Way

Some big Australian names are already setting the standard for sustainable packaging:

Major supermarkets have begun switching from plastic to paper and reusable options

Leading eCommerce platforms have adopted 100% recyclable mailers

Food and beverage brands are moving to compostable or recycled-content packaging

These shifts show that sustainable packaging isn’t just for niche markets—it’s now the baseline expectation.

9. The Future of Packaging in Australia

Looking ahead, these trends are expected to accelerate:

Tighter national regulations on recyclability and recycled content

More government funding for circular economy infrastructure

Increased availability of composting and closed-loop recycling systems

Demand for smarter packaging technologies

Consumer pressure driving continual improvement

Businesses that adapt early will have a stronger, more resilient position in this fast-changing landscape.

10. How Evopack Can Help

At Evopack, we understand the unique needs of Australian businesses when it comes to sustainability. We offer:

Expert knowledge of local regulations and packaging trends

A wide range of eco-conscious materials including rPET, paper, PLA and kraft board

Custom solutions designed for both functionality and brand impact

Help with packaging labelling and ARL compliance

Flexible, small-to-large order volumes ideal for start-ups and scale-ups

Whether you’re a boutique brand or an established enterprise, we’ve got the tools to help you lead the change.

Conclusion

Sustainable packaging is no longer a niche option—it’s the new normal for Aussie businesses in 2025. With shifting consumer expectations, tighter regulations, and clear commercial benefits, there’s never been a better time to upgrade your packaging game.

By embracing circular design principles, selecting better materials, and being transparent with customers, your business can stand out while doing what’s right for the planet.

Need support making the switch?
Evopack is ready to partner with you for a more sustainable future—designed and delivered right here in Australia.