Sydney, May 11, 2026, 04:08 AEST
Woolworths Group Ltd’s revived soft-plastics recycling program is now operating in more than 700 supermarkets across five Australian states, putting a visible store-level sustainability push back in front of shoppers after the collapse of REDcycle in 2022. The rollout has collected and processed about 40 million pieces of soft plastic, or 310,000 kilograms, under the renewed scheme.
The timing matters. Woolworths is trying to repair its value message while customers remain under cost-of-living pressure and investors watch margins. Last month, the company trimmed the top end of its fiscal 2026 earnings-growth expectations for Australian Food, citing fuel costs and spending to retain customers, even as quarterly sales beat market forecasts.
Trust is also part of the story. The Australian Competition and Consumer Commission has alleged Woolworths made false or misleading “Prices Dropped” claims on 266 products between September 2021 and May 2023; Woolworths has disputed the allegations and the case remains a key reputational overhang for the supermarket chain. ACCC
The recycling scheme began as a trial in five Victorian Woolworths stores in February 2024 and has since expanded, with selected South Australian stores joining last week, the company said. The collected material is being turned into products used in stores, including wall panelling and Woolworths own-brand bread bags made with 30% recycled plastic.
Rob McCartney, managing director of Woolworths 360, said customers had “continued to advocate for soft plastic recycling,” adding that the retailer was pleased to give shoppers the option again. Woolworths is working with Australian recyclers including saveBOARD, iQRenew and Plascrete. Inside FMCG
Woolworths is not moving alone. Coles and Aldi are also rolling out soft-plastics recycling bins, 9News reported, as the industry tries to rebuild a collection system nearly four years after REDcycle’s collapse left stockpiles in warehouses. Australian Council of Recycling chief executive Suzanne Toumbourou said remaking the material takes “a lot of grit” and technical skill. 9News
The company has tied the program to its wider sustainability agenda. Woolworths’ new plan sets five priority areas — climate and nature, waste and circularity, human rights, social impact, and health and nutrition — with 14 goals and timelines. Simon Lowden, its chief group public affairs, communication and sustainability officer, called the plan a mix of “ambition and pragmatism.” Woolworths Group
The scale is large, and awkward. Woolworths says Australia consumes about 70 billion pieces of soft plastic, or 538,000 tonnes, each year, with 84% ending up in landfill. Soft plastics usually include flexible packaging such as bags, wrappers and pouches, which often cannot be handled by standard household recycling systems.
For investors, the recycling program is unlikely to shift near-term earnings on its own. Woolworths shares last closed at A$33.60 on May 8, down 1.64%, before Monday trading; the ASX says normal cash-market trading begins at about 09:59:45 Sydney time and runs to 16:00.
But there is a clear risk. The scheme still depends on enough processing capacity, demand for recycled products and steady participation by shoppers, brands and rival retailers. Separately, the pricing case could keep the public focus on grocery credibility rather than recycling bins; University of Melbourne trust expert Nicole Gillespie told the Guardian that the ACCC case had already cast a “shadow of suspicion” over supermarket promotions. The Guardian
For Woolworths Group, the immediate gain is practical rather than dramatic: a service customers had lost is back in hundreds of stores. The harder test is whether shoppers see it as part of a broader reset, or just another aisle-side promise at a time when price, trust and margins are still doing most of the talking.
