How Policy Momentum in Australia, the EU, and North America Is Reshaping Global RPET Demand

Sept 2025

From EU WFD reforms to Australia’s Circular Economy Framework, regulatory change is accelerating global demand for certified, high-quality recycled PET and HDPE.

Recycled PET (rPET) has become a globally strategic material as brands, governments, and consumers push for higher sustainability standards. The rapid rise in policy-driven demand is transforming the global plastics market, and the ripple effect is reshaping supply chains across Asia and Australia.

The EU has set the tone with its Waste Framework Directive, Packaging and Packaging Waste Regulation (PPWR), and Extended Producer Responsibility frameworks. These policies require mandatory PCR percentages and introduce strict traceability rules to eliminate unverifiable recycled content claims.

In North America, Canada has introduced progressive national plastic regulations, while U.S. states like California, Washington, and Colorado now require minimum recycled content in beverage bottles and other packaging formats. These policies are backed by enforcement mechanisms and penalties, making compliance essential for brands.

Australia’s Circular Economy Framework further accelerates this shift. The country aims to reduce landfill, increase domestic recycling, and elevate the quality standards of recovered plastics. APCO-led packaging targets encourage businesses to adopt more recycled content with a strong emphasis on documentation and transparency.

The combined effect of these policies is unprecedented global demand for certified, clean, traceable recycled materials—particularly rPET suitable for bottle-to-bottle and food-contact applications. However, supply of high-quality rPET remains constrained in Europe and the United States, pushing brands and manufacturers to search for alternative sourcing regions.

Australia is emerging as a stable and reliable supplier due to its clean waste stream, strong regulatory controls, and increasing investment in advanced recycling capabilities. As its capacity continues to grow, Australia will play a larger role in supplying Asia’s manufacturing ecosystem with high-quality, export-compliant rPET.

For Asia—home to the world’s largest PET fiber and packaging industries—the ability to secure high-quality upstream rPET is becoming a central competitive factor. Factories that integrate traceable feedstock into their operations can better meet global brand expectations, unlock new export opportunities, and strengthen ESG performance.

As policy momentum continues to intensify, the global RPET landscape will be defined not only by supply and demand—but by transparency, documentation, and the strength of cross-border partnerships.