Woolworths Relaunches Soft Plastics Recycling After REDcycle Collapse

Key facts

• Woolworths has reintroduced soft plastics recycling collection points in over 700 stores across five Australian states.
• The new scheme aims to make it easier for families to recycle packaging during their weekly shop.
• The previous REDcycle supermarket scheme collapsed in November 2022.
• Over 12,000 tonnes of plastic were found hoarded in REDcycle depots across NSW, Victoria, and South Australia.
• Woolworths' new program has already collected and processed approximately 40 million pieces of soft plastic.
• Collected plastics are being transformed into items like in-store wall panelling and bread bags.
• Woolworths is collaborating with saveBOARD, iQRenew, and Plascrete for the recycling initiative.

Soft Plastics Recycling Returns to Supermarket Aisles

Consumers can once again deposit soft plastics at major Australian supermarkets, with Woolworths relaunching a national collection scheme. This initiative arrives more than three years after the abrupt collapse of the REDcycle program, which left consumers uncertain about the fate of their discarded packaging. The move signals a renewed effort by the retail giant to address the significant environmental challenge posed by soft plastic waste. Woolworths states that over 700 of its stores, spanning five states, will now accept a range of flexible packaging, including chip packets and lolly wrappers. This expansion follows a successful trial initiated in five Victorian stores in February 2024, with South Australian locations being the most recent to integrate the program this week. "With this initiative, we have made it easier for Aussie families to recycle their soft plastics as part of their weekly shop," a Woolworths spokesperson stated. The company aims to embed recycling into the routine of grocery shopping, thereby increasing participation and diverting more waste from landfill.

The Ghost of REDcycle Looms Large

The return of soft plastics recycling at Woolworths is shadowed by the dramatic failure of its predecessor, REDcycle. The privately operated scheme, which had been a fixture in Australian supermarkets, came to an unexpected halt in November 2022. This collapse left a significant void in the nation's recycling infrastructure for soft plastics. Investigations following REDcycle's demise revealed a disturbing reality: more than 12,000 tonnes of collected plastic were found hoarded across dozens of depots in New South Wales, Victoria, and South Australia. Retailers involved in the REDcycle scheme at the time maintained they were unaware of the true extent of the plastic accumulation and storage issues. This revelation cast a long shadow over consumer trust and the viability of supermarket-led soft plastics recycling. The failure highlighted systemic issues in the management and processing of collected materials, leaving many Australians questioning whether effective solutions could truly be implemented.

New Partnerships Drive Woolworths' Recycling Effort

Woolworths is forging new collaborations to ensure the success of its renewed soft plastics recycling program. The supermarket giant is working with recycling companies saveBOARD, iQRenew, and Plascrete. These partnerships are crucial for processing the collected materials and transforming them into new products. Some of the plastic collected through the new initiative is already being recycled into tangible items. These include in-store wall panelling used within Woolworths outlets and the company's own-brand bread bags. This circular approach demonstrates a commitment to creating value from waste and closing the loop on packaging. This strategy contrasts with the opaque operations that plagued the REDcycle scheme. By publicly detailing its recycling partners and the end-use of collected materials, Woolworths appears to be prioritizing transparency in its environmental efforts.

Scale of the Soft Plastic Challenge

The sheer volume of soft plastic packaging used annually underscores the importance of effective recycling solutions. Industry figures indicate that Australian manufacturers utilise more than 500,000 tonnes of soft plastic packaging each year. Historically, only a fraction of this material has been successfully recycled. Since the commencement of its new program, a significant collection rate. The company states its renewed recycling program has gathered and processed approximately 40 million pieces of soft plastic, equating to 310,000 kilograms, since its inception in 2024. This figure, while substantial, represents a small fraction of the total annual usage. The success of this initiative will depend on sustained consumer participation and the capacity of its recycling partners to handle the ongoing inflow of materials. The challenge remains immense, given the pervasive nature of soft plastics in everyday consumer goods.

Rebuilding Consumer Confidence

The collapse of REDcycle significantly eroded public trust in supermarket-led soft plastics recycling programs. Consumers diligently separated and returned their soft plastics, only to learn that much of it was not being processed as promised. This led to widespread disappointment and a sense of futility regarding recycling efforts. Woolworths' relaunch of a national scheme is an attempt to rebuild that confidence. By implementing a trial phase and partnering with specific recycling firms, the company is signaling a more robust and transparent approach. The visible use of recycled materials in their own stores and products may also serve to reassure customers about the program's efficacy. However, the memory of REDcycle's failure lingers. The long-term success of Woolworths' program will hinge not only on its operational efficiency but also on its ability to communicate progress and address any emerging issues proactively, thereby proving that a viable national soft plastics recycling system can indeed function.

The bottom line

• Woolworths has relaunched a national soft plastics recycling program across over 700 stores.
• The new scheme aims to restore consumer confidence after the 2022 collapse of the REDcycle program.
• Over 12,000 tonnes of plastic were found hoarded at REDcycle depots following its failure.
• Woolworths is partnering with saveBOARD, iQRenew, and Plascrete to process collected plastics.
• Collected soft plastics are being repurposed into items like wall panelling and bread bags.
• Australian manufacturers use over 500,000 tonnes of soft plastic packaging annually, with low recycling rates historically.