Fibre-based packaging is delivering innovation, opportunity, and sustainability in Australia – there is much to be optimistic about in 2025, writes Kellie Northwood, CEO, Visual Media Association (VMA).
Fibre-based packaging has emerged as the leader in sustainable packaging, offering strong environmental benefits alongside functional advantages for industry and consumers. In the context of the VMA’s Label & Packaging Coalition, formed in 2024, the latest Australian Packaging Covenant Organisation (APCO) report, and the Department of Climate Change, Energy, the Environment and Water (DCCEEW) packaging consultation, this article explores the promise, challenges, and opportunities for fibre-based packaging in Australia, a sector redefining packaging standards globally.
Promise of fibre-based packaging
APCO's Australian Packaging Consumption and Recovery Data 2022-23 report, recently released, highlights fibre-based packaging as a top performer in Australia’s packaging landscape. Representing over 50 per cent of all packaging placed on the market, this segment achieved a recovery rate of 73 per cent of corrugated board and overall fibre-based packaging recovery rate of 65 per cent. Despite this, approximately 1.3 million tonnes of paper and paperboard still end up in landfill annually, which will continue to be the industry’s focus in 2025 and beyond. These figures reflect a strong performance from the fibre-based sector, however, as an industry we encourage consideration of more than recovery rate targets, as fibre-based packaging to landfill carries other credentials worth noting, such as being a carbon store and carrying compostability principles.
The report shows an impressive growth trajectory for fibre packaging, which experienced a compound annual growth rate (CAGR) of 5.6 per cent from 2017–18 to 2022–23. This exceeds population growth and outpaces other materials like glass and plastic.
Fibre-based is the packaging solution that we urge the government to remain cautious in overregulating at a local level, that may see Australia’s packaging producers at an unfair and non-competitive position over international packaging producers.
Sustainability and fibre
Australia’s packaging regulations are at a crossroads. We recognise this and the VMA’s role is to consolidate a unified voice into government and related industry bodies to ensure the technical expertise of mills and producers have influence in future guidelines for best practice sustainability outcomes. The VMA has argued that fibre-based packaging’s strong environmental performance justifies its exclusion from punitive measures under extended producer responsibility (EPR) schemes and further restrictive regulations across a vibrant, high-employing and responsible manufacturing sector.
The VMA’s submission into the DCCEEW’s Packaging Guidelines Consultation advocates for tailored regulation to packaging sectors, that recognises the fibre-based sector’s strengths while focusing on higher-risk materials such as plastics and metals.
Our submission emphasised that fibre packaging aligns with international sustainability standards, including certifications from PEFC, FSC, and an existing global standard with our compliance with CEPI. Further, we are engaging in science that reflects a global shift toward Nature Positive and renewable resource substrates. Fibre-based substrates not only reduce carbon emissions but also promote circularity through recyclability and renewable raw materials, which we urge the government to consider with as strong a criteria allocation as recycled content or recovery rates alone.
Challenges and opportunities
While fibre-based packaging is a clear leader from its sustainable principles, challenges remain:
Recovery and Recycling Rates: Despite high recycling potential, collection rates for fibre packaging dropped from 68 per cent in 2021–22 to 65 per cent in 2022–23. Enhancing recovery systems and recycling infrastructure will be critical to reversing this trend.
Regulatory Landscape: The VMA warns of the risks posed by blanket regulations that fail to account for the strengths of fibre packaging. Over-regulation or misaligned standards could disincentivise the use of fibre in favour of less sustainable options.
Global Competition: With Oceania representing just 0.6 per cent of the global carton and paperboard market, Australia must ensure that regulatory frameworks do not disadvantage local manufacturers or deter international investment.
Infrastructure Investments: Expanding recycling and recovery infrastructure is essential to supporting the circular economy for fibre packaging. VMA argues for dedicated funding mechanisms to address these gaps effectively.
Economic and Consumer Drivers
The rise of e-commerce has significantly bolstered the demand for corrugated and paperboard packaging. In 2024, approximately 17.08 million Australians shopped online monthly – a 45 per cent increase from 2020. Corrugated and paper pouches have become integral to meeting the logistics needs of this growing sector.
The e-commerce boom is expected to sustain the demand for fibre packaging, with projected global sales nearing $1.3 trillion by 2025. Furthermore, shifting consumer preferences for environmentally friendly packaging provides an additional catalyst. Australians increasingly favour products packaged in renewable, recyclable materials, aligning with global trends that prioritise sustainability.
Fibre-based packaging solutions are a commonly recognised recycled solution through kerbside household waste streams. Increased regulations in this sector can disrupt current improvements, something that could set us backwards, rather than focusing on continual improvement, which we at VMA are adamant the government should consider.
Global Influence
The global push to eliminate plastic pollution, supported by treaties and regulations, opens the door for fibre-based alternatives. Australian manufacturers are already exploring innovations, including enhanced recyclability and renewable substrates, to lead this charge.
Drawing inspiration from European models like CEPI’s recyclability standards, Australia has the opportunity to position itself as a global leader in sustainable packaging. The industry’s trajectory, as highlighted by the VMA membership, depends on fostering a supportive regulatory environment and continued investment in innovation, rather than increasing regulation for minimal, if any, sustainability gain.
The Path Forward
The VMA’s submission outlines several recommendations for advancing the fibre-based packaging sector:
National harmonisation: Establish consistent regulations across states and territories to streamline compliance and support innovation.
Education and collaboration: Foster partnerships between government, industry, and consumers to promote best practices in recycling and sustainable packaging design guidelines (SPGs) in a more collaborative and all-industry inclusive approach.
Focus on design innovation: Encourage the development of new applications for fibre-based packaging in consultation with the industry and technical experts, to expand its utility and sustainability.
Expand sustainability definitions: Recycled content, recyclability and recovery rates are a small element to define the environmental credentials of a substrate. Including consideration of renewable resource, Nature Positive credentials and carbon are critical improvement areas to embrace.
The VMA continues to champion fibre-based packaging as a cornerstone of Australia’s sustainable future. By addressing infrastructure gaps, refining regulations, and promoting innovation, this sector stands ready to meet the evolving demands of consumers, businesses, and policymakers alike. Fibre-based packaging is not just an industry success story, it is a template for how sustainability can drive both economic and environmental progress. Let’s grow it, not restrict it with red tape.
