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What's happening with soft plastic recycling?

Repurposing the material is making a comeback in Australia, but widespread solutions remain elusive.

soft plastics surrounded by question marks in speech bubbles
Last updated: 21 January 2025
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Need to know

  • Soft plastic recycling is ramping up again in Australia after the collapse of REDcycle in 2022
  • Drop-off schemes are returning to supermarkets and some homes are getting their soft plastics collected for re-processing
  • But disruptions continue to hamper progress and experts say some effective recycling solutions may prove controversial

Two years after the collapse of REDcycle revealed shortcomings in Australia's recycling infrastructure, local efforts to give soft plastics a second life are re-emerging.

But participants say there still isn't enough capacity for a return to a national collection scheme, with disruptions continuing to hit local recyclers.

Meanwhile, experts fear effective solutions, such as turning soft plastics into oil for use as an energy source, may not be received positively by consumers.

Who's currently collecting soft plastics for recycling?

Following the collapse of REDcycle, new drop-off and collection initiatives are promising to ensure this ubiquitous, yet difficult-to-recycle material isn't automatically consigned to landfill.

Supermarket collection

Coles, Woolworths and Aldi were partners of REDcycle, which, at its peak, was collecting millions of pieces of soft plastic every day from shoppers at 2000 supermarkets across Australia.

The plastic was then being passed onto manufacturers to be repurposed into new products.

But by late 2022, according to the supermarkets, a 300% increase in collection volumes since 2019 was colliding with a dramatic reduction in recycling capacity.

This was accompanied by a pandemic-induced downturn in demand for recycled products, leading to plastic being stockpiled. REDcycle was paused and dissolved soon afterwards.

Now, the supermarkets are back with a more limited collection scheme operating in over 120 stores across Melbourne, Sydney and parts of regional New South Wales.

Visitors can drop clean, dry soft plastics with the "Check locally", "Return to store", or "Store drop off" Australasian Recycling Label into special bins at these outlets.

three recycling logos full-width

Clean and dry soft plastics with the above labels are accepted by supermarkets taking part in the latest collection effort.

Council pick-ups and drop-offs

Some local councils are also encouraging residents to bring in their soft plastics for recycling, accepting drop-offs at their local waste management facilities.

Others are going a step further and offering limited collections of soft plastics from homes in the manner of traditional kerbside recycling.

Several councils in Sydney and regional New South Wales have partnered with Recycle Smart to provide residents with these occasional free or subsidised pick-ups.

In areas where they haven't partnered with councils, Recycle Smart collects soft plastics for a fee, as do other commercial services.

Other councils in New South Wales have partnered with Curby to give residents the option of putting their soft plastics in special tagged bags inside their regular kerbside recycling bins.

The federal government has also helped fund industry plans to get brands using soft plastics to contribute money to the recycling process

Curby, which has also worked with councils in South Australia, supplies branded bags and tags to participating residents to ensure their soft plastics can be easily separated from other materials during the recycling process.

Government and industry initiatives

State and federal governments are also getting involved – Queensland authorities are planning to trial various methods of collecting and processing soft plastics in different parts of the state.

Meanwhile, other state governments have joined with the Commonwealth to provide financial grants to recycling companies to help them process more soft plastic.

The federal government has also helped fund industry plans to get brands using soft plastics to contribute money to the recycling process.

What's happening with the soft plastics being collected?

worker at plastic recycling centre

Collectors have partnered with several recycling companies to repurpose stockpiled plastics.

These new initiatives are being met with scepticism from some consumers, with the supermarkets running collections admitting they need to "restore trust" in soft plastic recycling.

The retailers are also coming under scrutiny from the ACCC, which is concerned by their slow progress in clearing thousands of tonnes of plastic left over from REDcycle.

Coles, Woolworths and Aldi assumed responsibility for these and are working with recyclers to process them, along with the plastics they're currently collecting.

Several of their partners also process plastics accrued by other collectors, and what they do with the material varies widely.

For example, New South Wales-based IQ Renew processes supermarket plastics as well as those collected by Curby.

The recycler says it repurposes these materials for use in hard plastic products such as benches, bollards and posts, as well as in new soft plastic films.

Transforming soft plastics into a material that can be added to concrete or asphalt to make it stronger is another common approach.

This is being pursued by Close the Loop and the Centre for Regenerative Design and Collaboration (CRDC) – Victorian processors also helping tackle the supermarkets' plastic stockpile.

Disruptions continue to delay progress

But these efforts are being hit by similar disruptions to those that led to the undoing of REDcycle.

In a recent report, Coles, Woolworths and Aldi admitted they will take longer than expected to clear the largest of the REDcycle stockpiles.

Some of the reasons for this can be seen in the problems facing individual recyclers.

firefighters after fighting fire

Fires at processing facilities have caused havoc with attempts to recycle soft plastics.

A fire at the premises of Close the Loop, REDcycle's largest processing partner, is considered a key reason for the loss in demand that led to the end of the pioneering scheme.

Close the Loop has returned as a partner in the supermarkets' latest attempt at sustainable soft plastic disposal, but has again suffered disruptions.

The company was recently forced to pause processing for several months after an equipment failure.

"We've been hit twice, but we're resilient," Steve Morriss, head of circular economy at the company, tells CHOICE.

He says processing has restarted and is optimistic about the business' future, but admits that soft plastic is a "very complex" waste stream.

Experts say Close the Loop isn't alone in facing difficult conditions and warn disruptions will continue as the soft plastics recycling industry finds its feet.

"As it does become mature in Australia, you will see a lot of fluctuation in how much gets recovered and how much gets stockpiled," says Dr Ben Madden from the University of Technology Sydney's Institute for Sustainable Futures.

"Consumers can expect a lot of ups and downs and starts and stops," he adds.

With their current program, the supermarkets say they're being careful to not exceed "limited local recycling capacity".

And while they have recently expanded collections to new stores, they admit there isn't yet enough capacity in Australia to support a nationwide deposit scheme.

Effective methods may prove controversial

Experts say new recycling techniques could boost capacity, but admit they may not receive complete public support.

APR Plastics, a recycling partner of Recycle Smart and some local councils, has been experimenting with attempts to turn soft plastics into oil. This oil can then be refined and used in new plastic products, but also as an energy source.

APR isn't alone in this ambition – Victorian refiner Viva Energy has previously announced plans to upgrade its facilities to be able to process oil made from plastic waste.

This feedstock would be used in the production of new plastic products, but also vehicle fuels.

Plastic experts admit this approach could face stigma but say it's one of the most effective ways to deal with plastic waste.

"That's really the way we're headed," says Dr Melissa Skidmore, a senior research scientist working with the CSIRO's Ending Plastic Waste initiative.

"It's infinitely more useful [than other forms of recycling] because you basically turn that plastic back into virgin material," she says.

You basically turn that plastic back into virgin material

Dr Melissa Skidmore, CSIRO

By breaking soft plastic down to its chemical building blocks, the process allows it to be reused in more ways, including in fuels, but also new food-grade packaging.

But experts say this approach is currently far from constituting a significant solution.

In the meantime, Dr Skidmore says consumers should maintain faith in current efforts to tackle soft plastic waste.

"Have confidence, but be patient because, unfortunately, this area is moving very slowly."

How to use less soft plastic

Don't have a recycling scheme near you, but want to do your bit to stop most soft plastic ending up in landfill? Follow these tips:

  • Use reusable shopping and fresh produce bags at the supermarket.
  • Buy loose fruit and vegetables (they're often cheaper than packaged).
  • Use food covers/beeswax wrap and reusable containers instead of cling wrap and sandwich bags.
  • Opt for more products such as toilet paper or tissues that come in cardboard boxes without plastic wrappings or attachments.
  • Buy food items such as grains, rice and pasta from bulk food stores.

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