SYDNEY, May 10, 2026, 08:06 (AEST)
Woolworths Group has reintroduced soft-plastic recycling bins in over 700 supermarkets spanning five states, marking the return of its extensive in-store collection network after several years. According to the retailer, selected stores in South Australia were added to the program this week. The rollout follows a trial that kicked off in five Victorian stores back in February 2024.
The timing isn’t subtle. Supermarket recycling in Australia has faced pressure since REDcycle folded in 2022, cutting off shoppers’ main option for recycling soft plastics like bread bags and chip packets. According to The New Daily, REDcycle’s parent company ended up liquidated after stockpiles surfaced across Victoria, NSW, and South Australia.
The move also puts local recycling infrastructure to the test against growing public appetite. According to Woolworths, customers have dropped off close to 40 million soft plastic items—about 310,000 kilograms—since the relaunch kicked off.
The material isn’t going out as ordinary waste. According to Inside FMCG, Woolworths has teamed up with saveBOARD, iQRenew, and Plascrete, sending collected plastics into new store items—think wall panels and its own bread bags, which now use 30% recycled plastic.
Rob McCartney, managing director at Woolworths 360, said shoppers “continued to advocate” for the service. iQRenew now has a NSW facility able to handle 14,000 tonnes of soft plastics annually, according to McCartney, and saveBOARD’s building products are in place at 170 Woolworths stores. Packaging News
When it comes to soft plastics—think flexy wrappers and bags, not those hard bottles or tubs—9News notes they’re still off-limits for standard kerbside recycling. Coles and Aldi are joining the push, setting up their own drop-off bins, so Woolworths isn’t acting alone. It’s a broader comeback for supermarket soft plastic takeback. “It’s work that needs grit, and technological prowess,” Australian Council of Recycling CEO Suzanne Toumbourou told 9News. 9News
The framework is moving beyond a temporary fix, settling into a formal industry setup. Back in November, the Australian Competition and Consumer Commission handed Soft Plastic Stewardship Australia an eight-year green light to operate a voluntary recycling initiative. The program, pulled together by Woolworths, Coles, ALDI, Nestlé, Mars and McCormick Foods, expects companies to chip in for managing the packaging they produce and sell. According to ACCC Deputy Chair Mick Keogh, the scheme brings “environmental benefit.” ACCC
Barry Cosier, who heads Soft Plastics Stewardship Australia, described the Woolworths rollout as “just the start.” According to him, nearly 70% of Australians now have easy access to soft-plastic recycling through supermarket collection points. Supermarket News
In-store rollout is moving ahead, but kerbside efforts are trailing. According to SPSA’s public collection page, kerbside commercialisation kicked off July 1, 2025, spanning nine councils in NSW, South Australia, and Victoria. Wider kerbside and drop-off access hinges on future authorisations and commercial deals.
Still, there’s a catch: collection sometimes outruns both processing power and the appetite for recycled goods. Under the ACCC authorisation, SPSA must release yearly performance figures, submit to third-party reviews in the third and seventh years, seat a minimum of two independent directors on its board, and steer clear of exclusive deals with processors. These checks aren’t just box-ticking—last time, the scheme was derailed by swollen stockpiles and a market that didn’t want the material.
For Woolworths, the immediate challenge isn’t as splashy as the rollout itself: it comes down to keeping bins tidy, making sure customers get straightforward store lists, and showing that material actually ends up in products. The return’s in progress. The real question? How it holds up over time.
