An Australian startup is redefining one of the most overlooked sources of waste in global supply chains: single-use pallet wrap. Used to stabilise goods in transit, stretch wrap accounts for up to 2% of global plastic waste, yet it has long been accepted as unavoidable waste. However, Bearhug’s founders saw a different future.
The idea began when Tom Field, working as a truck driver, witnessed firsthand how many tonnes of used pallet wrap were discarded each day. Even when pallets were reused, the plastic never was. Tom teamed up with long-time friend Max Higgins and Jonah Ng to build a durable, reusable alternative that could integrate into existing logistics systems.
Their solution is a high-strength reusable pallet wrap that can be used over 1,000 times, replacing up to 350 kg of single-use plastic per wrap. Today, Bearhug has more than 140 customers, including Amazon, and has helped avoid over 15 tonnes of soft plastic. But the innovation goes far beyond the wrap itself.
Developing a Holistic Circular Pallet Wrap System
Bearhug has developed an end-to-end reuse system that makes circular packaging practical at scale. Their world-first pooling model allows wraps to move through supply chains just like pallets, circulating between distribution centres, retailers and manufacturers before being collected and returned for reuse.
To support adoption, Bearhug works closely with customers to integrate the solution into daily operations. Many organisations begin by leasing wraps, allowing teams to trial reusable systems without upfront investment while reducing plastic waste from day one.
Recognising that 60% of global large-scale wrapping is automated, Bearhug is also developing the world’s first automated wrapping machine designed specifically for reusable pallet wraps. After successful demonstrations of their v1 prototype with several industry leaders, the team is now assembling their next-generation system, which will undergo its first commercial trial in December. This technology is designed to work seamlessly within existing automated workflows, removing one of the final barriers to widespread adoption and enabling reuse at the speed and scale global supply chains require.
How TRaCE Helped Accelerate Bearhug’s Growth
Bearhug was selected for the Climate 10 X Accelerator, a UNSW Founders program supported by TRaCE, which helps fast-track climate-tech startups by connecting them with world-class R&D expertise, prototyping infrastructure, and pathways to scale.
Through the 10-week program, Bearhug gained access to technical mentors, commercial advisors and partner networks that strengthened their strategy and prepared them for international expansion.
“The Climate 10 X Accelerator program came at the perfect time for us, leading into our European launch and pilot automated wrapping trial. Normally, working towards these milestones can get knocked off track by the hundreds of new tasks that come across your desk,” says Tom Field. “This program helped us recognise what the most important next step is, plan out, and rally the support to actually achieve it.”
Reflecting on the company’s next chapter, co-founder Max Higgins adds, “Bearhug expanding to Europe was not a matter of if, but when. Europe is a 30x larger market, with a strong reuse agenda (PPWR) and circularity already embedded in many supply chains. We’re excited for what the future holds for Bearhug in Europe.”
Why Europe Is the Next Frontier
Bearhug’s vision has always been global. Their recent move to Germany, with expansion plans into the Netherlands, marks a deliberate push into the European market. This is no coincidence as regulation is aligning in their favor.
Under the 2030 Packaging and Packaging Waste Regulation (PPWR), EU rules will soon mandate reusable pallet wrapping — up to 100% for domestic shipments and 40% for inter-EU movements. Bearhug’s timing positions them to meet that demand head-on with their reusable solution. The team is now actively engaging European FMCG (fast-moving consumer goods) distributors, automation partners for trials, and other scale-up collaborators across the EU.
A Circular Future for Global Supply Chains
From a problem spotted behind the wheel of a truck to a rapidly expanding circular economy startup preparing to scale across Europe, Bearhug’s journey demonstrates the impact of simple but powerful innovation.
With reusable wraps already in use across major Australian supply chains, a world-first automation system nearing its first trial, and global regulations driving demand for reusable solutions, Bearhug is positioning itself as a leader in the future of circular packaging.
