In recent years, sustainability has moved from a niche concern to a mainstream priority, reshaping how consumers shop and companies operate—especially within Australia’s rapidly expanding e-commerce sector. With the continual growth of online shopping, packaging waste has increasingly come under scrutiny. Against this backdrop, compostable packaging has emerged as a promising alternative, gaining noticeable traction across the industry. Here, we take a closer look at how widely compostable packaging is being adopted by online retailers in Australia, what’s driving this shift, and where the trend is headed.
How Widely Is Compostable Packaging Being Used?
Compostable packaging is designed to fully break down in composting conditions, turning into water, carbon dioxide, and organic matter—without leaving behind microplastics or toxins. More Australian e-commerce businesses are now integrating these materials into their operations.
According to the latest annual report from the Australian Packaging Covenant Organization (APCO), compostable packaging was used by approximately 15% of e-commerce businesses in 2022—a significant jump from just 8% in 2020. The same report projects that adoption could climb to 30% by 2025, reflecting a strong and sustained upward trend.
Further supporting this outlook, Statista reports that the overall sustainable packaging market in Australia is expanding at a compound annual growth rate (CAGR) of 12.5% between 2021 and 2026. E-commerce applications—particularly compostable mailers, biodegradable protective fillers, and other planet-friendly formats—are cited as major contributors to this growth.
What’s Driving the Shift?
Several key factors are accelerating the move toward compostable packaging in Australian e-commerce:
1.Growing Consumer Environmental Awareness
Shoppers are increasingly making choices based on environmental impact. In a 2021 survey conducted by McKinsey & Company, 65% of Australian consumers said they prefer buying from brands that use sustainable packaging. This sentiment is pushing online retailers to adopt greener alternatives.
2.Government Policies and Targets
Australia’s National Packaging Targets require that all packaging be reusable, recyclable, or compostable by 2025. This clear regulatory signal has prompted many companies to rethink their packaging strategies and accelerate the transition to compostable options.
3.Corporate Sustainability Commitments
Major e-commerce platforms—including Amazon Australia and Kogan—have publicly committed to reducing their environmental footprint. Switching to compostable packaging is one of the tangible steps these companies are taking to meet their climate goals.
4.Innovation in Materials
Advances in bioplastics and compostable material blends have led to more functional, affordable, and aesthetically pleasing packaging. Companies like ECOPRO are at the forefront of this innovation, producing specially designed 100% compostable bags for e-commerce uses such as shipping envelopes and product packaging.
ECOPRO: Leading with Fully Compostable Packaging
ECOPRO has established itself as a specialist in producing 100% compostable bags tailored for e-commerce needs. Their range includes shipping mailers, resealable bags, and garment packaging—all made from plant-based materials like cornstarch and PBAT. These products break down completely in industrial composting facilities, offering brands a practical way to reduce plastic waste and connect with environmentally aware customers.
Overcoming Challenges, Embracing Opportunities
Although compostable packaging is on the rise, it’s not without challenges. Cost remains a hurdle—compostable options are often more expensive than conventional plastic, which can be a barrier for smaller businesses. In addition, composting infrastructure in Australia is still developing, meaning that not all consumers have access to appropriate disposal methods.
Still, the future looks encouraging. As production scales up and technology improves, prices are expected to fall. Better composting systems and clearer labeling—coupled with consumer education—will also help ensure that compostable packaging fulfills its environmental potential.
The Path Ahead
Compostable packaging is becoming an established part of Australia’s e-commerce landscape, supported by consumer values, regulatory frameworks, and corporate initiative. With suppliers like ECOPRO offering specialized, reliable solutions, the shift toward truly sustainable packaging is well underway. As awareness spreads and infrastructure catches up, compostable materials are poised to play a central role in Australia’s transition to a circular economy.
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Post time: Sep-22-2025
