From Recycling Bin To Supermarket Shelf: How ALDI Is Scaling Circular Plastic Packaging In Australia

From Recycling Bin to Supermarket Shelf: How ALDI Is Scaling Circular Plastic Packaging in Australia

24-Oct-26

ALDI and Pact Group are turning Australian household plastic waste into millions of new supermarket bottles containing up to 50% recycled plastic

A partnership between Australian supermarket chain ALDI and packaging and recycling company Pact Group is demonstrating how post-consumer plastic waste can be converted into new packaging at significant commercial scale.

The companies announced that more than 19 million ALDI laundry and cleaning bottles and containers will be produced each year using up to 50% Australian recycled plastic. The programme will consume almost 800 tonnes of locally recycled plastic resin annually. (pactgroup.com)

The significance is that the material follows a clearly defined circular pathway:

Household plastic waste → collection → recycling → recycled resin → new packaging → ALDI products → supermarket shelves

From kerbside recycling to new bottles

The recycled material originates from household plastic collected through Australia's kerbside recycling system. It is processed at Pact's Circular Plastics Australia recycling facility in Melbourne, where it is converted into recycled plastic resin.

Pact then uses the resin to manufacture new laundry and cleaning bottles and containers for ALDI's own-brand products. The finished products are subsequently filled and distributed to ALDI stores across Australia. (pactgroup.com)

According to Pact, the programme will produce 19.3 million containers annually, consuming almost 800 tonnes of recycled resin. Seven laundry products have increased their recycled content to as much as 50%, while three additional household-cleaning bottles have also increased their recycled content to as much as 50%.

The companies say the recycled content in the seven laundry products has approximately doubled from previous levels.

The economics are important

One of the most significant aspects of the programme is the claim that the increase in recycled content has been achieved without increasing the cost to consumers.

Pact and ALDI say packaging design, manufacturing efficiencies and supply-chain collaboration helped make this possible. The use of coloured recycled resin was also cited as one way of offsetting the additional cost associated with higher recycled content. (pactgroup.com)

This is important because the availability and cost of consistent, high-quality recycled resin remain major challenges for packaging manufacturers.

The ALDI case demonstrates that long-term customer commitments, packaging design and recycling infrastructure can work together to improve the economics of recycled-content packaging.

Part of a longer-term partnership

The current programme is the latest stage of an ALDI–Pact relationship that began in 2023.

At that time, the companies announced a strategic partnership to provide ALDI suppliers with access to recycled plastic packaging for products including milk bottles, meat trays, fruit and vegetable punnets, beverage bottles, and health, beauty and cleaning products. (pactgroup.com)

ALDI subsequently set targets for increasing recycled content in its exclusive-brand packaging. The retailer says that by 2025 its exclusive-brand packaging had reached an average of 32.5% recycled content, while 91.9% met its recyclability or compostability criteria. (aldi.com.au)

The companies have now renewed their strategic partnership for another three years, with a continued focus on packaging design and affordable sustainable packaging.

A commercially relevant model for the plastics industry

The ALDI–Pact initiative illustrates an important principle for the circular plastics economy: recycled-content targets work best when there is a defined market for the recycled material.

In this case, the retailer provides demand, Pact provides recycling and packaging manufacturing capability, and household recycling provides the feedstock.

The result is a measurable commercial chain linking waste collection to recycled resin and then to new consumer packaging.

For recyclers, this provides a potential route to stable demand. For packaging manufacturers, it creates opportunities to develop products capable of incorporating higher levels of recycled polymer while maintaining performance and appearance. For retailers and FMCG companies, it provides a tangible way to demonstrate progress toward circular packaging.

The ALDI case is therefore less about achieving a particular 50% recycled-content number and more about demonstrating that collection, recycling, packaging manufacture and consumer demand can be connected at commercial scale.

With 19.3 million containers and almost 800 tonnes of recycled resin annually, the programme provides a concrete example of how that model can work in practice.