Woolworths Expands Soft Plastics Recycling to 500 Stores

Woolworths is preparing to significantly expand its soft plastics recycling programme, aiming to have collection points in 500 stores over the next year. This move marks a major step in the supermarket’s effort to address Australia’s growing soft plastic waste problem and rebuild trust following the collapse of REDcycle.

Currently, only 120 Woolworths stores are participating in the initiative. The company plans to increase that number by more than fourfold, extending across metropolitan areas of Sydney, Melbourne, southeast Queensland, Adelaide, and the ACT.

Limited Recycling Capacity a Major Obstacle

One of the key challenges in rolling out the scheme nationally is the limited capacity for soft plastic recycling within Australia. Unlike hard plastics, soft plastics—such as bread bags, food wrappers, and plastic film—are harder to process and can typically only be recycled once or twice before the material degrades too much for reuse.

Woolworths said the expansion will be paced carefully to avoid overwhelming local recyclers. A spokesperson explained that the company is working closely with new and existing recycling partners to help scale operations responsibly. Several new recyclers have begun operations in the past year, gradually increasing national processing capability.

They added that the Soft Plastics Taskforce, formed in response to REDcycle’s failure, has been instrumental in restarting collections and coordinating an interim solution while a longer-term plan is developed.

Towards a National Stewardship Scheme

The Taskforce—comprising Woolworths, Coles, and ALDI—was established to address the soft plastics crisis, manage existing stockpiles, and lay the groundwork for a future-ready system. A more permanent, industry-led soft plastics stewardship programme is currently in development. The aim is to bring together all stakeholders—manufacturers, retailers, and recyclers—to create a unified system for handling household soft plastics.

The proposed scheme is designed to support the circular economy, where plastic materials are reused, repurposed, or recycled instead of ending up in landfill.

Why Soft Plastics Are So Problematic

Soft plastic waste remains one of the most difficult forms of plastic to manage. In Australia alone, around 538,000 tonnes of soft plastic are discarded each year. Without adequate recycling infrastructure, most of it ends up in landfill, contributing significantly to environmental degradation.

Soft plastics break down quickly during the recycling process, making them less versatile than rigid plastics. This means their recycling needs to be tightly managed to ensure any recovered material can still be used meaningfully.

Building effective systems for these materials is critical—not only to reduce waste but to ensure Australia transitions toward a more sustainable, circular waste model.

Collaboration Driving Progress

Supermarkets involved in the Taskforce do not operate recycling facilities themselves. Instead, they partner with independent recycling companies that have the technical expertise to handle soft plastics. These collaborations are crucial to developing the necessary infrastructure and scaling it to meet demand.

To facilitate this cooperation, the Australian Competition and Consumer Commission (ACCC) has granted the supermarkets authorisation to work together through the Taskforce. This approval currently extends to 31 July 2026, allowing continued coordination and joint planning.

As part of the expansion, Woolworths plans to reinstate soft plastic collection bins at the front of its stores—returning a familiar and convenient recycling option for customers.

The Road Ahead

While the road to a comprehensive soft plastics solution remains challenging, the expansion signals growing momentum. The collaborative approach between supermarkets, government bodies, and recyclers is seen as essential for success.

Woolworths says it remains committed to supporting the development of a sustainable recycling ecosystem, working closely with industry partners to scale responsibly. The upcoming national stewardship programme is expected to play a central role in ensuring the system can meet demand in the long term, both environmentally and economically.

With soft plastics accounting for such a large portion of Australia’s waste problem, the expansion of in-store recycling is a timely and necessary step towards a cleaner, more circular future.

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