Packaging has become one of the most powerful strategic levers in the food and beverage value chain. Once treated as a back-end cost, it now shapes everything from shelf appeal and logistics efficiency to regulatory compliance and export access, according to the latest analysis from Australia and New Zealand Banking Group.
The ANZ Food for Thought Summer 2025/26 report argues that beyond the role of containment, packaging is increasingly central to competitiveness, sustainability and growth.
The shift reflects a combination of scale and scrutiny. According to data from the Australian Packaging Covenant Organisation, (APCO) Australians use around seven million tonnes of packaging each year – roughly 264kg per person – spanning paper, glass, plastics, metals and wood. That volume has pushed packaging reduction and recyclability from optional sustainability goals into hard commercial requirements. Governments, retailers and consumers are all demanding packaging that does more with less, without driving up costs.
ANZ describes packaging today as a “freshness system, billboard and logistics tool all in one”. Lighter packs reduce fuel use and freight costs. Right-sized formats increase pallet density and reduce breakage. Designs that are easier to recycle help brands meet regulatory expectations and avoid landfill. Even seemingly minor design changes, such as shifting a juice bottle from round to square, can materially improve transport efficiency, shelf fit and consumer convenience.
Regulation raises the bar
Regulation is accelerating the pace of change. In the European Union (in line with the Packaging and Packaging Waste Regulation [PPWR]), all packaging must be recyclable by 2030, with limits also being placed on empty space and waste generation. These rules apply not just to European producers, but to any brand exporting into the region. As a result, many companies are now designing for the toughest global market first.
Australia is also tightening its approach. A draft national packaging design framework aims to ensure packaging is recyclable “in practice”, with proposed minimum recycled content thresholds and clearer on-pack labelling. Container deposit schemes now operate nationwide, while several states have introduced restrictions on specific single-use plastics. Brands are increasingly expected to adopt packaging formats that work consistently across all jurisdictions.
ANZ’s report highlights how small design decisions can materially improve recyclability. Clear plastic bottles with small, easy-peel labels and tethered caps are easier for sorting technology to identify and process, resulting in cleaner recycled material and higher rates of bottle-to-bottle recycling rather than down-cycling into lower-value products.
Innovation reaches everyday packaging
While sustainability goals are tightening, innovation is increasingly visible in everyday food and beverage formats. Wineries are moving away from heavy glass towards lighter bottles, cans and bag-in-box solutions that reduce transport emissions, improve safety and suit outdoor occasions. Beverage producers in major markets are adopting tethered caps to ensure lids and bottles are recycled together. In Australia, the NSW Plastics Plan 2.0 includes introducing tethered lids for plastic bottles by 2030.
Food packaging innovation is also increasingly focused on extending freshness and reducing waste. Modified-atmosphere packaging slows spoilage in products such as fresh pasta and sliced cheese. Salad bags use laser-cut micro-perforations to prevent fogging while allowing leaves to “breathe”. Bakery packaging incorporates oxygen-control features to extend shelf life without preservatives.
High-pressure processing, which uses water pressure rather than heat to neutralise microbes, is enabling brands to switch from complex multi-layer pouches to clear, single-plastic tubs that are easier to recycle. Edible plant-based coatings on produce such as avocados and mangoes are also reducing the need for plastic wraps while maintaining quality during export.
Designing for recyclability
A major theme is the move toward packaging that is recyclable by design. Multi-material structures are being replaced with single-plastic formats that sorting systems can easily detect. Black plastic trays are giving way to clear alternatives, cardboard sleeves are being removed from yoghurt tubs, and shiny metallic snack packaging is being redesigned to improve recyclability.
Soft plastics remain the most challenging category due to their light weight and layered construction. While infrastructure limitations persist, brands are gradually simplifying materials and improving labelling to guide consumers. Clear disposal instructions – whether “bin at home” or “return to store” – are becoming essential rather than optional.
Price, convenience and export access
ANZ notes that packaging changes often require significant investment, particularly for smaller brands. New formats can mean new machinery, revised line settings and redesigned cartons. However, the report argues that these changes also present opportunities to differentiate on shelf, reduce waste and unlock export markets.
For exporters, packaging acts as a passport. Products are increasingly tailored to local regulations, retail systems and recycling schemes, from deposit markings and crate-friendly formats in Germany to slim cans and multilingual labelling in Asia and the Middle East. Smart packaging decisions made at the factory can open multiple markets simultaneously.
The bottom line, the ANZ report concludes, is that packaging is no longer an afterthought. The most successful formats keep food fresh, use less material, move efficiently through supply chains and align with recycling systems as they exist today. When that story is communicated clearly on pack, packaging itself becomes a reason for shoppers to choose a product – rather than leave it behind.
