Five key trends reshaping Australia's packaging sector

Jet Technologies has identified five packaging trends it expects to shape the Australian market through 2026, driven by regulatory change, the return of soft plastics recycling, persistent cost pressures and faster product cycles.

Packaging providers also face looming deadlines under new national rules that will introduce mandatory packaging standards across Australia. Proposed changes include removing harmful chemicals from packaging, mandatory recycling labelling and minimum thresholds for recycled content.

These measures sit alongside renewed attention on soft plastics following the collapse of REDcycle. Soft plastics recycling regained momentum in 2025 with the opening of a large-scale facility in New South Wales. The plant receives material from trials in Queensland, New South Wales, South Australia and Victoria, as well as some return-to-store programs.

Household budget constraints are also shaping packaging decisions. Inflation remains above the Reserve Bank of Australia's 2-3% target range, weighing on consumer confidence and raising concerns about potential future interest rate rises.

Recyclable materials

The first trend is continued innovation in recyclable materials, particularly technically recyclable soft plastics. Global development has improved performance, shelf life and cost efficiency compared with early alternatives.

"What we're seeing today is a very different generation of materials," said Daniel Malki, General Manager at Jet Technologies. "In many cases, recyclable options now outperform earlier structures and are far more viable for commercial use," said Malki.

Malki said Australia is moving at a different pace than overseas markets. "Early adopters have already made the move, but most brands are waiting for legal obligations to arrive, which won't likely be until FY27," he said. "Even where recyclable structures offer comparable performance and cost, we find that clients are hesitant to act without regulatory pressure," he said.

Compliance barriers

The second trend is the operational and administrative burden of compliance. Organisations face rising costs and heavier documentation demands, particularly around recyclability claims where collection and processing systems remain uneven.

Packaging changes can also require capital investment. Many brands cannot shift to new structures without upgrading machinery, slowing adoption even as materials improve.

"Supporting clients through these challenges will be a defining role for packaging companies in 2026," Malki said. "Preparation for upcoming regulatory requirements will become a core part of customer relationships," he added.

Value and function

The third trend highlights how cost-conscious consumers are influencing pack formats and product presentation. Brands are adjusting formats rather than raising prices, including downsizing packs such as coffee moving from 1kg to 700g. Others are passing on price rises while adding 10-15% extra volume as a value signal.

Functionality is another driver, particularly in food and beverage. High-protein, wellness and performance claims are contributing to frequent product variations, which can result in short-run stock keeping units with limited time on shelf.

"This pace of change creates real complexity for brands and converters," said Malki. "Packaging needs to support frequent artwork updates, smaller batch sizes and faster turnaround without the cost burden of traditional print methods," he added.

Digital print

The fourth trend is rising demand for digital print and packaging interactivity. Brands are looking for production methods that can scale volumes up or down without committing to long runs. There is also growing use of embellishments and customisation for shorter campaigns and more frequent design changes.

Interactivity is becoming more common through QR codes and connected packaging, linking consumers to recipes, product information and sustainability details. The features can also give brands more data on engagement.

"Interactive packaging is becoming a practical tool rather than a novelty," said Malki. "It allows brands to share recipes, product information or sustainability details, while also creating opportunities to better understand their customer base," added Malki.

Behaviour shifts

The fifth trend reflects changing consumer behaviour. Sustainability remains important, but affordability has become the primary purchasing driver for many households. Jet Technologies linked the shift to more families eating at home and continued growth in grocery volumes, which can influence demand for specific formats and pack sizes.

Jet Technologies is an importer and distributor across several industrial sectors, and has expanded from its Sydney base into New Zealand and parts of South-East Asia. In print and packaging, it supplies packaging materials and printing technologies and operates demonstration centres in Sydney and Melbourne.

Looking ahead, packaging organisations that invest in digital capability, align production with client needs and guide brands through regulatory change are expected to be best positioned for growth.