Australia Green Packaging Market Projected to Reach USD 8,060.58 Million by 2033

Market Overview
The Australia green packaging market size was valued at USD 5,424.00 Million in 2024 and is projected to reach USD 8,060.58 Million by 2033. The market is expected to grow at a CAGR of 4.50% during the forecast period 2025-2033. Growth is driven by government mandates, compliance-driven procurement, rising consumer eco-awareness, and innovations in recyclable, compostable, and biodegradable packaging solutions, alongside retail sustainability alignment.

For more details, refer to the Australia Green Packaging Market
https://www.imarcgroup.com/australia-green-packaging-market

How AI is Reshaping the Future of Australia Green Packaging Market
• AI-powered analytics are enhancing supply chain optimization and procurement strategy development, improving efficiency in sourcing sustainable packaging materials.
• Machine learning algorithms are accelerating R&D in biodegradable materials and plant-based plastics by simulating material properties and environmental impact.
• AI-driven consumer insights and behavior research enable brands to better understand eco-conscious consumer preferences, facilitating tailored sustainable packaging solutions.
• Automated quality and compliance checks, powered by AI, ensure adherence to national packaging sustainability mandates like the 2025 National Packaging Targets.
• AI-enabled process automation is helping companies reduce packaging waste and optimize design to reduce weight and multi-material complexity.
• Intelligent tracking and closed-loop recycling systems, supported by AI, are improving circular economy participation and packaging recovery efficiency.

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Australia Green Packaging Market Growth Factors
The Australia green packaging market is driven by regulatory pressure and environmental initiatives from the federal and state government. To meet the 2025 National Packaging Targets, all companies in consumer goods sectors must package items in recyclable, compostable, or reusable materials by 2025 to minimize how much they contribute toward landfill (Australia Packaging Covenant Organization (APCO)). All packaging is to be recyclable or reusable for 2025 and have targets for 70% recycling and 50% recycled content. This puts additional requirements and incentives to redesign existing and new food, drink, cosmetics and pharmaceuticals packaging and is expected to support much of the resulting market growth.

Another reason is changing retailer priorities to meet growing demand from environmentally conscious consumers. In Australia, many consumers consider the environmental impact, particularly of packaging, when purchasing a product. The growth of sustainable consumer packaging includes plant-based plastics and bio-films, recyclable board packaging and compostable mailers. Supermarkets and private label products have invested heavily in sustainable packaging to meet consumer demand. R&D centers and and related companies work together to innovate and develop materials, reduce weight and lower the environmental impact of packaging ink and adhesives.

Thirdly, the market is sustainably transformed through industry-led initiatives and through innovation. Visy, Novelis and Rio Tinto have a project under the motto "Re-In-Can-Ation". The project will offer 15 million sustainable cans. This will save 1235 tonnes of carbon dioxide. Recycling remains a challenge only 64% of aluminum cans go through recycling. Companies such as SIG and Ahlstrom developed recyclable and compostable packaging. Sustainable options are more available now. Such partners innovate for circular economy transition toward consequent strong market growth.

Australia Green Packaging Market Segmentation
Packaging Type Insights:
• Recycled Content Packaging
• Paper
• Plastic
• Metal
• Glass
• Others
• Reusable Packaging
• Drum
• Plastic Container
• Others
• Degradable Packaging

End Use Industry Insights:
• Food Industry
• Beverage Industry
• Healthcare Industry
• Personal Care Industry
• Others

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

Key Players
• Visy
• Novelis
• Rio Tinto
• SIG
• Ahlstrom

Recent Development & News
• March 2025: Visy, Novelis, and Rio Tinto launched the "Re-In-Can-Ation" initiative, piloting 15 million sustainable cans to reduce carbon emissions by 1,235 tonnes. This cross-industry effort promotes circular economy goals and addresses Australia's aluminium recycling challenges.
• July 2024: SIG introduced its recycle-ready bag-in-box water packaging in Australia, eliminating aluminum and using recyclable SIG Terra RecShield material. This innovation supports meeting the Australian 2025 National Packaging Targets and enhances packaging recyclability.
• April 2025: Ahlstrom received home compostability certification from the Australasian Bioplastics Association for its PFAS-free Sulpack® parchment paper, aiding customers in Australia and New Zealand to achieve sustainable packaging objectives with natural grease barriers.

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