The role of bioplastics in Australia’s packaging transition

As Australia accelerates its transition to a circular economy, bioplastics, particularly certified compostable products, are emerging as a critical enabler in packaging. With mounting pressure to reduce plastic pollution and divert organic waste from landfill, bioplastics are no longer a peripheral solution – they are central.

Where we stand

Globally, bioplastics production is set to more than double by 2029, reaching 5.73 million metric tonnes. In Australia, the market is projected to grow at a CAGR of 11.8 per cent, surpassing USD 1.1 billion by 2033. Packaging is leading this growth, driven by consumer demand for sustainable alternatives and regulatory moves away from single-use plastics.

Yet despite this momentum, Australia’s circularity rate lags – just 5.4 per cent compared to the global average of 7.2 per cent. Access to food organics and garden organics (FOGO) services remains fragmented, and infrastructure to process compostable packaging is still developing.

The role of certified compostable packaging

Certified compostable bioplastics are designed to safely break down in commercial or home composting systems, leaving no toxic residues. They offer a practical solution for food-contaminated items – such as takeaway containers, produce bags, and foodservice ware – that are challenging for recycling facilities to process.

These materials do more than manage end-of-life. They support cleaner organics streams, reduce the often ‘unpleasantness’ in food waste separation, and improve participation in FOGO programs.

Challenges ahead

Despite their benefits, certified compostables face barriers:

●     Fragmented regulation: Australia lacks a harmonised national policy, leading to inconsistent acceptance across states and councils. 

●     Greenwashing and confusion: Misleading claims about “biodegradable” products undermine trust and contaminate compost streams. Clear labelling and third-party certification are essential. 

●     PFAS concerns: The Australasian Bioplastics Association (ABA) mandates that certified products contain no intentionally added substances (NIAS). Independent testing ensures total fluorine levels remain below 100 ppm, aligning with global best practice.

The power of certification

Certification under Australian Standards AS 4736 (commercial composting) and AS 5810 (home composting) is the cornerstone of trust. It guarantees products perform as claimed, break down safely, and produce high-quality compost. In the past year, ABA certifications under AS 4736 have grown by 35%, and AS 5810 by nearly 60% – a clear sign of rising demand and awareness.

Scaling the opportunity

Retailers like Coles and Woolworths are replacing plastic produce bags with certified compostable alternatives, cutting millions of plastic bags annually. Councils are integrating certified liners into FOGO programs, and foodservice providers are seeking compostable solutions to meet sustainability goals.

To truly scale, we must go beyond caddy liners. High-volume sectors such as hospitals, aged care, and hospitality generate substantial food waste, and compostable packaging enables hygienic, efficient collection.

The road ahead

To unlock the full potential of bioplastics in Australia, we need coordinated action across policy, infrastructure, and education. Harmonising policy and labelling standards across states and councils will reduce confusion, while investment in organics processing infrastructure will ensure these materials are effectively composted rather than landfilled. Equally important is education. Consumers, councils, and composters require clear guidance on certification, correct disposal, and the difference between genuinely compostable products and misleading “biodegradable” claims. Enforcing certification standards also helps combat greenwashing and builds trust in the sector, ensuring that certified compostable packaging can truly deliver on its promise: reducing landfill, closing nutrient loops, and supporting a cleaner, more efficient waste system.

Certified compostable packaging is a powerful tool in the circular economy. When used correctly, it closes the loop between food use and nutrient recovery, reduces landfill emissions, and supports cleaner, more efficient waste systems. The opportunity is here. With collaboration across industry, government, and the community, we can scale solutions that are good for business, good for the planet, and good for future generations.