Recyclability demand has Australian beverage makers switching to rPET bottles

As recycled polyethylene terephthalate (rPET) containers can drastically lower carbon emissions and help promote a circular economy, the consumer demand for recyclable packaging is on the rise, forcing more Australian beverage manufacturers to switch from PET to rPET bottles, says GlobalData, a leading data and analytics company.

Australia has set ambitious targets to build a circular economy. The National Packaging Targets envisages 100% of packaging produced in Australia to be reusable, recyclable, or compostable by 2025. PET bottles are one of the major contributors to single-use plastic waste in Australia, as it accounted for 86.9% of rigid plastics unit volumes in 2021.

To meet the packaging targets, beverage producers are in a race to adopt rPET bottles and make their packaging portfolio more eco-friendly. Major soft drinks producers such as Coca-Cola, Pepsi, and Asahi have already adopted 100% rPET bottles for their popular brands.

Packaging manufacturers are also developing new bottle designs to support the transition to rPET. For instance, the KHS Group launched Loop LITE, a fully recyclable, lightweight, 100% rPET bottle with an inner glass lining and a tethered cap. Beverage makers are incentivized by the growing consumer interest in sustainable packaging. Recyclability has become a key factor that Australians are actively looking for when making product purchases.

In GlobalData’s Q3 2022 survey, 74% of Australian respondents said that recyclable packaging claims were a nice-to-have factor or essential/key driver of their product purchases, compared to 68% in Q2 2022. This indicates opportunities for beverage brands to build consumer loyalty through eco-friendly product packaging.


About the author: Suneera Joseph is a consumer analyst at GlobalData.