The Future of Fibre-Based Packaging: Sustainability & Innovation

Fibre-based packaging is emerging as a leading sustainable solution in the packaging industry. As we move through 2025, Australia is witnessing a significant shift toward fibre materials, driven by sustainability, regulatory changes, and consumer demand for eco-friendly alternatives.

The Rise of Fibre Packaging

According to the Australian Packaging Covenant Organisation (APCO), fibre-based packaging now accounts for over 50% of all packaging in Australia, with a commendable 65% recovery rate. Corrugated board leads the way with a 73% recovery rate, highlighting the recyclability of fibre-based solutions.

Despite these achievements, about 1.3 million tonnes of fibre-based material still end up in landfills annually, showing the need for better waste management and recycling practices. The industry has been growing at a 5.6% compound annual growth rate (CAGR), outpacing other materials like plastic and glass, reinforcing its increasing dominance in sustainable packaging.

Sustainability & Industry Regulations

As sustainability regulations evolve, industry leaders are pushing for fair policies that recognise fibre’s strong environmental performance. Some advocate that fibre packaging should not face the same regulatory pressures as plastic under extended producer responsibility (EPR) schemes. Balanced policies will help maintain the competitiveness of Australian packaging manufacturers.

E-Commerce & Market Trends

The booming e-commerce sector is further fueling the demand for fibre packaging. Global online sales are expected to reach $1.3 trillion by 2025, requiring efficient and sustainable packaging solutions. Many large corporations, including Amazon, have transitioned to recyclable fibre-based packaging, setting new industry standards.

Challenges & Opportunities

While fibre-based packaging is a key driver of sustainability, challenges remain. The high volume of fibre waste in landfills indicates a need for improved recycling systems and consumer education. Additionally, businesses must ensure that sustainable solutions meet practical demands for durability and product protection.

To address these concerns, industry collaborations are forming, such as the Label & Packaging Coalition, which promotes best practices and regulatory advocacy to strengthen fibre packaging’s role in a circular economy.

Moving Forward

The future of fibre packaging in Australia looks bright. As companies prioritise sustainability, fibre-based solutions offer an eco-friendly alternative without compromising functionality. By embracing these innovations, businesses can align with consumer expectations and contribute to a greener future.

As the industry continues to evolve, fibre packaging will play a pivotal role in shaping a more sustainable packaging landscape—one that balances environmental responsibility with efficiency and performance.