What Happened to Soft Plastic Recycling in Australia, And What’s Coming Next

In 2022, soft plastic recycling in Australia hit a major roadblock when REDcycle, the main collection program for plastic bags and wrappers, collapsed. Supermarkets paused their drop-off schemes. Suddenly, Australians who had been dutifully separating their plastic were left with nowhere to take it.

But behind the scenes, a quiet rebuild has begun. And this time, it’s designed to be stronger.

At the heart of this transformation are two key players:

● APCO (Australian Packaging Covenant Organisation), a government-backed group that oversees packaging sustainability.
● SPSA (Soft Plastics Stewardship Australia), an industry-led coalition of supermarkets, brands and recyclers working together to rebuild the soft plastic system.

These organisations are planning a national solution. In the short term, companies that make or sell packaged goods will voluntarily fund soft plastic recovery programs. From 2027, a new system called EPR (Extended Producer Responsibility) is expected to kick in. It means companies that make the packaging will be financially responsible for collecting and recycling it.

That’s where recyclers come in. iQ Renew, APR Plastics, and Close the Loop are already processing soft plastics into new materials. APR, for example, transforms wrappers into oil through advanced recycling. Close the Loop turns plastics into railway sleepers and asphalt additives. These companies need a steady, clean stream of soft plastic to keep running—and expanding.

To help with that, kerbside soft plastic trials are happening in selected councils. Many supermarkets have restarted drop-off points too. It’s early days, but we’re moving in the right direction.

What’s clear is this: Australians care. When given a chance, people want to recycle their soft plastics. But they also need infrastructure, clear guidance, and trust that it’s worth the effort. 19

● Future Post blends the plastics with other materials to make items like plastic fence posts, garden products and parking bumpers.
● saveBOARD, based in Hamilton, blends soft plastics with other recycled fibres to create low‑carbon building boards for construction and insulation.

By compacting soft plastics at home, taking them to drop-off points, and asking brands what they’re doing to support recycled content, we can all be part of the shift.

The future of soft plastic recycling depends on all of us—industry, government, and everyday people—pulling in the same direction. Let’s make sure this time, we get it right.