Several of the sustainability aspects are already being enforced as binding regulations in countries like Japan and South Korea.
Each country has varied infrastructure abilities and different binding and aspirational targets. However, they all have the common goal of improving the recyclability performance of food and beverage packaging.
Recyclability performance is a measure of how much of a product’s material can be recycled at the end of its life cycle.
Recyclability is a central focus of the APAC region’s evolving Extended Producer Responsibility (EPR) regulations, as reflected in multiple draft policies and existing frameworks. Similarly, in Europe, the Packaging and Packaging Waste Regulation (PPWR) places strong emphasis on recyclability and the performance ratings of packaging materials, said Chen Huangyi, SIG sustainability manager for Asia Pacific South.
Chen shared these insights in a webinar hosted by SIG, titled “From Regulations to Circularity – The Future of Sustainable Packaging in Asia”.
It highlighted factors to consider in light of the circularity priorities of different countries.
How to improve recyclability performance?
According to the experts, firstly the packaging material must be able to be used for closed-loop recycling – where it is used to make new products.
It must also be straightforward to process in the paper mill, and should yield high quality recycled products that can be reused by people and the industry.
To meet these criteria, reducing material complexity and increasing paper content are ways to meet sustainability goals. This is especially crucial for regions constrained by limited recycling infrastructure.
“In this [APAC] region, there are definite infrastructure constraints, which is why we have simplified our packaging design by reducing the number of different materials used.
“Our aseptic carton solutions, which do not contain an aluminium layer, help streamline the recycling process by requiring only two materials to be separated instead of three.
“Additionally, by increasing the paper content in our Terra cartons, we aim to make them compatible with recycling systems that only process paper,” said Chen.
Chen added that a recent trial demonstrated that the fibre recovered from SIG’s aluminium-free Terra packs was stronger than that from market packs containing aluminium. This not only improves recyclability but also enhances the value of the recycled material.
Most significantly, it addresses the main challenges of recycling traditional paper pulp and polyAl, a mixture of the plastics and aluminium which have been used as functional barrier materials, caps and closures in beverage cartons.
Paper fibres from pulp recycling are low quality and do not pass food safety regulations. They can only be made into less advanced products such as secondary packaging or tissue.
As for polyAl, it can be upcycled into furniture, construction boards, and pallets. However, it is a challenging material to recycle for most markets, which do not have the infrastructure to upcycle the used materials. These used polyAI materials are eventually incinerated or moved to landfills.
Reducing reliance on landfills is part of the sustainability agenda for APAC and the EU, where governments have drawn up EPR and PPWR frameworks respectively.
Recycling infrastructure in APAC and the EU
The overarching trend points toward progressive tightening of EPR policies to curb plastic pollution and promote circular economy principles.
Overall, the EPR schemes require producers, brand owners, and importers to manage their packaging waste, either independently or through government-approved waste management systems.
Japan has had EPR regulations in place since 1995, initially covering specific materials and later expanding to include paper and plastic packaging in 2000. The system applies to both producers and importers, who can either manage their own recycling programmes or delegate the responsibility to the Japan Containers and Packaging Recycling Association (JCPRA). The annual recycling obligations and associated costs are published each year, and JCPRA members must pay an annual fee based on a formula that accounts for production volume, collection efforts, obligation coefficients, and recycling costs.
South Korea has a similar EPR system to Japan. Companies that fail recycling obligations face penalties in the form of a ‘recycling fee’ – in 2024, the recycling rate stands at 14.6% for aseptic packaging and 29.3% for chilled packaging. Additionally, since 2024, brands must display a mandatory recyclability grade label on packaging. To encourage sustainable packaging design, companies can also apply for the ‘Good Recycle’ certification, which rewards efforts to enhance recyclability.
China has a stringent EPR system, with legally binding packaging reduction quotas and strict recyclability labelling requirements. Notably, China’s Green Packaging Standards impose maximum weight limits on packaging to minimise waste at the source.
Australia is progressing toward a nationwide EPR system with eco-modulated fees. The fee structure is under discussion but will likely be similar to South Korea with certain discounts available to brand owners, whose packaging go above and beyond the obligated standards.
Australia is also banning problematic materials such as carbon black, oxo-degradables, and chemicals that hinder recyclability, such as PFAS. By 2040, targeted post-consumer recycled content levels are 50% for PET, 25% for PE & PP, and 75% for paper, with lower thresholds for specific items like paper cups.
Malaysia, Indonesia, Vietnam, and Thailand do not yet have fully legally binding EPR regulations, though they have introduced frameworks, roadmaps, or voluntary initiatives that are moving toward mandatory compliance.
As for the EU, the PPWR focuses on packaging sustainability, with a target for all packaging to be designed for recycling by 2030, meeting recyclability and performance standards of grade C or higher – meaning 70% of a packaging must be recyclable. Additionally, there is a minimum 10% recycled content requirement by 2030.
“The key takeaway is clear: governments are prioritizing sustainability, and urgent action is required. As an industry, we must accelerate sustainable innovations and work collectively to meet these targets.
“This also underscores the challenges brand owners face when operating across the region, as they must navigate varying EPR regulations, targets, and punitive measures,” said Chen.
