Australia’s food and beverage value chain has been given a practical roadmap for driving the transition to more eco-friendly packaging, with the release of a new report from the Food and Beverage Accelerator (FaBA).
The 2025 Sustainable Packaging Trends Report, outlines priority action areas to help the food and beverage sector align packaging practices with growing consumer expectations, tightening regulatory demands, and the need for a circular economy. Produced by researchers at FaBA, including the report's co-author Professor Janet McColl-Kennedy from The University of Queensland Business School, the report signals that Australia’s packaging industry is approaching a generational shift.
“Adopting sustainable packaging is one of the most immediate and impactful ways Australia’s food and beverage sector can transition to a circular economy,” Prof McColl-Kennedy said. “Yet stakeholders often report difficulties navigating sustainable packaging, waste management, and circularity practices. Our report aims to provide clear, practical insights to inform decision-making.”
Casting a wide net for global insights
The research underpinning the report was extensive, McKoll Kennedy told PKN. The team conducted a systematic review of 1175 publications from 2019 to 2024, sourced from leading market research agencies, industry bodies, consultancy firms, and government organisations around the world. Materials ranged from detailed reports and case studies to webinars and interviews, all assessed for their relevance to sustainable packaging in the food and beverage sector.
In addition, the researchers spoke directly with five businesses to include illustrative case studies, ensuring the roadmap reflects both global best practices and on-the-ground Australian realities.
Priority action areas
The report identifies 12 trends grouped into four strategic priorities:
- Governing waste for sustainable packaging development: Emphasising stronger regulatory frameworks, global partnerships, and capturing economic value from circular models.
- Designing packaging for circularity: Prioritising recyclable, compostable, and reusable packaging designs to close the loop.
- Leveraging packaging design for sustainable food life cycles: Focusing on packaging’s role in reducing food waste, emissions, and supporting conscious consumption.
- Innovating technologies for sustainable packaging development: Exploring advancements in next-generation recovery methods and bio-based material solutions.
Dr Alexandria Gain, co-author of the report, stressed that businesses can no longer view sustainable packaging as optional. “Sustainability in packaging is no longer a choice, but a necessity,” Dr Gain said. “Our research equips businesses with data-driven insights to adopt environmentally responsible packaging while maintaining product integrity and brand value. From Australian compliance and global sustainability regulations to cutting-edge technologies, the report offers a balanced approach for making impactful decisions.”
Key recommendations for the value chain
For food and beverage companies – from producers to retailers – the report offers five key recommendations to drive change:
- Establish Collaborative Partnerships: Building strong collaborations across academia, industry, and government is vital to innovate and address resource gaps, especially for small and medium enterprises.
- Adopt an Ecosystem Mindset: System-wide coordination across the packaging value chain, supported by governance frameworks, will be critical to overcoming fragmented efforts and achieving collective goals.
- Leverage Data and Digital Technologies: Using AI, blockchain, and smart sensors can optimise packaging designs, improve recycling processes, and enhance supply chain transparency.
- Invest in "Win-Win" Innovation: R&D investment should target solutions that achieve multiple sustainability wins – such as developing packaging from food by-products or shifting to concentrated food forms like powders and tablets that reduce packaging needs.
- Accelerate Scaling of Solutions: Efforts must focus on scaling up emerging technologies such as compostable materials, next-gen recycling, and biodegradable bioplastics, while addressing infrastructure and cost barriers.
What this means for F&B
The findings make it clear that sustainable packaging innovation cannot be viewed in isolation. Businesses must think holistically – considering design, end-of-life management, supply chain collaboration, and consumer engagement – to unlock the full benefits of circular packaging systems.
With mounting pressure from regulatory reforms, global market shifts, and consumer expectations, the food and beverage sector faces an imperative to act swiftly and decisively. FaBA’s roadmap provides a timely and actionable guide to help businesses navigate the complexities ahead and position themselves for a future where sustainability is a fundamental business requirement.
The 2025 Sustainable Packaging Trends Report was supported by the Australian Government Department of Education through the Trailblazer Universities Program.
