Woolworths has announced a new range of 'revolutionary' packaging products set to dramatically reduce plastic waste.

The new initiative will begin in 2021 and allow shoppers to purchase their favourite products in environmentally friendly reusable containers, rather than single-use plastic packaging.

In the video above, Woolworths confirms paper bags also set to make a comeback

"When finished with the product, the packaging is collected or can be dropped back in the store, cleaned, refilled and reused – creating a revolutionary circular shopping system," a Woolworths spokesperson said.

Examples of the new reusable packaging (right) and a Woolworths store (right) Credit: Supplied

"It will allow customers to sustainably consume a variety of commonly used products such as washing detergent, shampoo, juice or ice cream in customised, brand-specific, durable packaging," they added.

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The initiative, called 'Loop', has already done deals with companies like PepsiCo, Nestle, and Procter and Gamble.

Minister for Industry, Science and Technology Karen Andrews has congratulated Woolworths for taking the lead.

“I congratulate Woolworths for showing the initiative to embrace a recycling solution that will significantly reduce its waste packaging," Minister Andrews said.

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