The chief executive of ASX-listed packaging company Pact Group says customers are willing to pay a “green premium” for items made from recycled plastic as the group signed an agreement with Woolworths to supply recycled plastic for the supermarket giant’s home brand products.

The agreement means that by 2024 Pact will be supplying Woolworths with up to 18,000 tonnes of packaging items across beverages, milk containers, fruit trays, meat trays and washing liquid bottles.