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Avery Dennison Collaborates with Leading Recycler and Converter to Advance PET Bottle Recycling in Indonesia

By CJ Koh, Director, Segment Development, ASEAN

Published on 29 Aug 2025

Explore how Avery Dennison, in collaboration with Amandina and Master Label, revolutionized PET bottle recycling in Indonesia. Through innovative pressure-sensitive labels, they enhanced both sustainability and shelf appeal for a leading FMCG brand, setting a new standard in eco-friendly packaging.

Overview

As the global push for sustainable packaging grows, the recycling of PET bottles faces significant challenges—often due to labels that hinder recycling efficiency. We, at Avery Dennison, understood these industry-wide issues and took a proactive approach to accelerate circular packaging solutions in Indonesia. We partnered with Amandina, a leading recycler in the country, key converter Master Label, and a high-impact FMCG company whose flagship sauce product is a market leader among nearly 20 competing brands. This collaboration spanned multiple areas, including technical validation, joint brand engagement, aligned education efforts, and highlighting the benefits of end-to-end recyclability. The result was a seamless transition from traditional wet-glue (WG) packaging to pressure-sensitive (PS) labels on PET bottles—a shift that not only enhanced recycling efficiency, but also preserved the product's strong shelf appeal. The initiative created a strong model for collaboration between brands, recyclers, converters, and solution providers in Indonesia.

A Strategic, Multi-Faceted Approach

Avery Dennison began by identifying a key brand in the focused segment—one that had both scale and intent for sustainability transformation. Understanding that successful label transition required not only brand commitment, but also validation and technical expertise of recyclers and converters, Amandina and Master Label joined as strategic partners.

As a converter and direct supplier to the brand, Master Label played a key role in the packaging shift from WG to PSL. With technical expertise and a close relationship with the brand’s packaging team, they supported the transition by providing samples, facilitating trials, and showcasing the operational and branding benefits of PSL. Their hands-on approach and agility helped accelerate the brand’s decision.

Plastic bottles collected for recycling/Amandina

View of recycling facility/Amandina

The Challenge

The challenge impacted two key stakeholders—recyclers and FMCG brands—slowing progress in both recycling efficiency and sustainability efforts.

Recycling Bottlenecks with WG Labels: Amandina faced recycling difficulties from PET contamination linked to adhesive residues from WG labels. These residues, along with label fragments, slowed down their operations and compromised the quality of the recycled PET.
Pain Points for FMCG Brands: A global FMCG brand, committed to achieving sustainability goals while maintaining its iconic shelf appeal, experienced recyclability limitations with WG labels. They needed a solution that could improve the recycled output of their packaging while retaining their product's shelf appeal, particularly for their market-leading sauce brand.

The Solution

Recognizing these challenges, PS labeling technology was introduced as a solution that enhances both packaging aesthetics and recyclability, addressing key industry needs simultaneously.

Improved Recycling Efficiency: PS labels ensure superior removability, leaving no adhesive residue behind. This greatly minimizes contamination in recycling streams, enabling the production of higher-quality recycled PET.
Enhanced Shelf Appeal: PS labeling upgraded the FMCG brand’s sauce product to a clean, premium appearance, ensuring stronger consumer appeal in a competitive market.
Alignment with Sustainability Goals: By adopting PS technology, the FMCG brand demonstrated its commitment to circular packaging solutions, helping meet regulatory requirements and advance its eco-friendly objectives.

"PS labeling technology has been a game changer for us as recyclers," said Emmeline Hambali, Group Managing Director, Amandina. "By eliminating contamination in the recycling process, we are now able to enhance the value and usability of recycled PET materials. This project proves that innovative solutions like PS labels can have measurable impacts across the entire recycling ecosystem."

Intensive washer/Amandina

Converting and printing/Master Label

A Collaborative Impact

The collaboration between Avery Dennison, Amandina, Master Label, and the FMCG brand highlights the transformative potential of industry-wide cooperation in tackling complex sustainability challenges. Through this label transition, the FMCG brand is not only shaping consumer behavior but also driving advancements in PET recycling practices, proving PSL as a sustainable solution that drives packaging circularity.

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