Woolworths has struck a deal with Pact Group, an Australian food packaging maker, to reduce the use of new plastic. (PETER PARKS/AFP via Getty Images)
Household plastic items and bottles collected under the Container Recycling Scheme (CDS) will be turned into more sustainable food packaging products as Woolworths and Pact Group, the Australian food packaging manufacturer, have struck a deal to reduce the use of new plastic.
The supermarket giant is to overhaul the packaging of its own-brand products to make more use of recyclable plastic.
Woolworths, in its 2025 sustainability plan, sets out a target of halving the amount of new plastic used in packaging for its own-brand products by 2024.
Pact Group, which is listed on the ASX, will use its plastic recycling facilities across Australia to create more sustainable packaging for Woolworths 'own-brand milk, meat and beverage products.
The partnership with Pact Group comes as Woolworths works to phase out reusable plastic bags in its stores and as the Australian Retailers Association (ARA) calls on the government to develop a national plan to phase out single-use plastic products.
Woolworths 'head of sustainability Rob McCartney said the supermarket was trying to remove as much plastic packaging as possible, but needed it for some products, the Sydney Morning Herald reported.
"We are working to remove plastic from packaging such as baking trays, but [plastic] is necessary to protect the quality of some products and food safety, which is why replacing it [new plastic] with recycled plastic is the next best option."
The exact value of the agreement was not disclosed, but both companies said it represented "a multi-million Australian dollar investment in local recycling and manufacturing capacity".
The companies predict that about 18,000 tonnes of new plastic a year could be replaced by recycled plastic under the deal.
Consumer and environmental groups have been pressuring retailers to commit to reducing their use of single-use plastic, given the resurgence of products such as single-use coffee cups during the pandemic.
Noting that each state is taking different approaches to reducing the use of plastics, from shopping bags to take-out containers, the Australian Retail Association said last week the federal government should come up with a national plan to phase out single-use plastics.
Woolworths 'sustainability goals include halving the amount of new plastic used in packaging by 2024 and ensuring that packaging for its own-brand products contains at least 60 per cent recycled ingredients by 2025.
Last month, the company confirmed it would phase out the sale of 15 cent reusable plastic bags in Woolworths and Big W stores next year.
Coles, another supermarket giant, is also focusing on reducing new plastic in its stores this year. Coles Supermarkets has launched reusable bags containing 80 per cent recyclable plastic, 20 per cent of which comes from recycled Marine waste.
