Nestlé and PepsiCo Join PaperFlex Consortium to Advance Paper Packaging
Nestlé and PepsiCo have joined forces with four other major FMCG companies to accelerate the development of paper-based alternatives to flexible plastic packaging through the newly formed PaperFlex Consortium.
Convened by the Ellen MacArthur Foundation and operated by (RE)SET, the consortium brings together Nestlé, PepsiCo, Colgate-Palmolive, Mars, Procter & Gamble and Unilever. The initiative aims to address technical and economic barriers that have slowed the adoption of paper-based flexible packaging.
The consortium will focus on markets where flexible plastic packaging is widely used and formal collection and recycling systems remain limited. Its objective is to develop alternatives that can become recyclable as collection infrastructure improves while also being biodegradable if they unintentionally enter the environment.
Flexible plastic packaging is widely used for products such as confectionery, snacks and personal-care products. However, replacing it with paper presents significant technical challenges. Paper has limited barrier properties, can tear during manufacturing and can be difficult to seal without additional coatings or material layers.
The PaperFlex Consortium will explore technologies including biodegradable coatings and other material solutions designed to provide product protection, preserve shelf life and improve consumer usability while also performing efficiently on production lines.
The initiative comes as FMCG and food companies face increasing pressure to reduce their dependence on flexible plastic packaging. According to Ellen MacArthur Foundation data, flexible plastic accounted for 49% of Mars’ packaging in 2024, compared with 68% for Mondelez International and 25% for Ferrero.
Although paper-based packaging has attracted significant investment, achieving the required combination of performance, scalability and cost remains a major challenge. The Ellen MacArthur Foundation identified these gaps in a report published earlier this year.
The technical challenges become particularly complex for products containing fat or moisture and for liquid products such as laundry detergents and shampoos, where packaging must provide strong barrier protection and reliable sealing.
Unilever’s Pablo Costa said collaboration will be essential to overcome the cost, infrastructure and scaling barriers facing the industry. Nestlé’s Gilles Demaurex also highlighted the potential of paper-based flexible packaging to reduce virgin plastic use and minimise flexible packaging waste and pollution.
Through collaborative research and development, the six companies aim to accelerate promising paper-based packaging technologies and support their responsible deployment at greater scale and lower cost.
