Lindt & Nestlé: Advancing Circular Aluminium Packaging
A new European alliance is being formed by the European Aluminium Foil Association (EAFA) and Flexible Packaging Europe to tackle a significant sustainability challenge facing the packaging industry.
The initiative targets the recycling of small aluminium packaging formats, which continue to be lost within existing waste management infrastructure despite aluminium's well-established recyclability credentials.
According to the European Aluminium Foil Association, roughly 60% of aluminium packaging is recycled in Europe.
However, smaller packaging formats represent a persistent gap in this performance, slipping through current collection and sorting systems.
The alliance's formation could signal a coordinated industry response to improve recovery rates and advance circular economy principles for aluminium packaging across the continent.
Improving recycling at scale
The alliance has established a focused objective: to significantly enhance the recycling performance of small aluminium packaging, including coffee capsules.
The initiative centres on creating the necessary infrastructure and processes to ensure these formats can be effectively collected, sorted and recycled at both high quality and scale.
This approach could support a circular economy model in which aluminium remains in productive use rather than being diverted to disposal.
Aluminium foil also saves more resources than are consumed in its production throughout its value and supply chain.
"We need to join forces in the value chain to make progress particularly with small aluminium packaging in order to achieve the PPWR (Packaging and Packaging Waste Regulation) targets," says Guido Aufdemkamp, Executive Director of EAFA.
"This alliance provides a shared foundation to improve collection, sorting and recycling in a targeted way."
Guido explains that the alliance will identify bottlenecks in waste management that hinder recycling performance and conduct relevant studies supporting practical implementation of measures.
"We also rely on the experience in our network of national aluminium recycling organisations and other existing initiatives to put in practice the necessary actions," he says.
Addressing regulatory and infrastructure gaps
The upcoming Packaging and Packaging Waste Regulation has highlighted the urgency for action across the sector.
- The EU's Packaging and Packaging Waste Regulation (PPWR), replacing the older Directive, sets comprehensive rules for all packaging on the EU market.
- The regulation is aiming to cut waste, boost reuse/recycling and harmonise standards through design requirements (like recyclability by 2030) and recycled content mandates.
- It is likely to impact manufacturers, retailers and consumers to reduce environmental impact and foster a circular economy.
While aluminium generally achieves high recycling rates, smaller items continue to underperform.
These include:
- Coffee capsules
- Chocolate foils
- Cheese foils
- Dairy lids
- Small containers
Although modern, large-scale sorting facilities possess the capability to separate these formats, this capacity is not uniformly available across Europe.
The result is that substantial volumes are currently incinerated and only partially recovered through bottom ash treatment, an approach that will not satisfy future recycled-at-scale requirements under forthcoming regulation.
The expanding implementation of deposit return schemes for beverage containers is reshaping household recycling streams throughout Europe.
As these schemes remove beverage containers from the waste stream, sorting plants could have an opportunity to redirect their focus towards other packaging formats, including small aluminium items.
The alliance intends to use this transition period to identify specific bottlenecks in waste management systems and support targeted improvements in collection, sorting and recycling infrastructure.
Cross-industry commitment to circularity
Sixteen companies from across the aluminium and packaging value chain have confirmed their participation, with the alliance scheduled to launch on 1 January, 2026.
Among the main companies involved are:
The participants span the full value chain, including producers of aluminium foil, flexible packaging, coffee capsules and semi-rigid containers, alongside suppliers, brand owners and fillers.
This collaborative structure could reflect a recognition that recycling challenges require coordinated action across multiple stakeholders to strengthen the circular economy for small aluminium packaging.
The alliance's shared foundation approach could provide a framework for addressing systemic barriers that have prevented smaller formats from achieving comparable recycling rates to larger aluminium packaging items.
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Guido Aufdemkamp
Executive Director