How are the biggest names in our industry driving the transition from flexible plastics into paper-based alternatives?
Reflecting on the findings of its recent report, the Ellen MacArthur Foundation (EMF) highlights the progress made by Unilever, Nestlé, Mars and more towards improved recyclability for flexible formats, and the challenges that remain.
Small-format flexible plastic packaging is described as ‘one of the most stubborn’ technical and economic challenges in recycling. According to the EMF, around 25,000 units leak into the world’s oceans every second, with a further 20 trillion set to enter the seas by 2040.
In its previous report, the EMF recommended paper as an alternative to flexible plastic packaging, and set out six ‘critical’ criteria – sourcing, production, performance, local recyclability, chemical safety and biodegradability – to maximize the transition’s environmental benefits.
It cautioned that, if handled improperly, a switch from plastic to paper could simply trade one set of environmental issues with another – leading to deforestation, high water consumption, or ongoing pollution from non-degradable coatings and inks.
The report also emphasized that material innovation would not solve the plastic waste crisis by itself. Any material substitution should be accompanied by efforts to scale effective collection and recycling systems, it concluded.
While the EMF states that most commercial-scale packaging does not meet all six of its criteria, it notes that brand owners are increasingly seeking to implement flexible paper at scale.
One example is Unilever’s commitment to distribute around 10-15 kilotons of paper-based flexible packaging by the end of 2028. The brand has embedded this progress into its Sustainability Progress Index reward framework and linked it directly to executive remuneration.
Unilever’s global head of Sustainability for Plastics, Jonathan Gill, has stated that the brand has reviewed around 3,000 technologies over five years of R&D, and is now ready to transition from research into deployment.
Meanwhile, Nestlé seeks to implement alternative packaging materials, including paper, as part of its wider efforts to reduce virgin plastics. The Nestlé Institute of Packaging Sciences was opened in 2019 to advance these efforts alongside packaging experts, research institutions, start-ups, and suppliers.
Additionally, Mars has taken the approach of accelerating development in coating and adhesive technologies; this is expected to widen the range of applications where paper-based packaging is possible.
On the topic of investment, Circulate Capital reportedly raised $220 million at the first close of its Asia Fund II in April. Alternative paper-based packaging innovation is said to rank high in its investment priorities, with a focus on markets where flexible plastics are most challenging, including India, Indonesia, Thailand, Vietnam, the Philippines, and Malaysia.
Specialist funds are playing their own role. For instance, Emerald Technology Ventures has invested in innovations across materials, business models, recyclable and reusable formats, including businesses Xampla, Cajo, and Vytal.
New Earth Ventures is also noted for financing next-generation materials, packaging intelligence, and supply chain optimization powered by artificial intelligence and machine learning technologies.
Overcoming challenges
EMF takes note of the challenges identified by companies, including the reality that paper often runs more slowly through existing filling lines – and, at current production volumes, costs more than conventional plastics.
Paper typically requires coatings, barrier layers, adhesives and inks to match the moisture resistance, grease resistance, and shelf-life performance of plastics across storage conditions and markets. All this must be achieved without sacrificing the paper’s recyclability or biodegradability.
Developments in biopolymer coatings, paper surface modification, and improved barrier layers are thought to be closing the gap between technical possibility and commercial viability. EMF raises the example of Atomic Layer Deposition, an emerging technology that uses ultra-thin layers to improve both performance and recyclability using less coating material.
Fibre innovators are also said to be transitioning from virgin woods to agricultural residues and other non-wood sources with ‘significantly lower’ land use and biodiversity impacts. Canopy’s Pack4Good initiative is highlighted as one example.
EMF goes on to highlight Ahlstrom’s pursuit of industrial scale, application expertise, and cross-value-chain collaboration alongside material innovation. VP Group Innovation Wouter Gabrielse underlines the company’s goal to keep investing in specialty fibre technologies and helping brands adopt more circular packaging solutions.
Open innovation models are increasingly targeting paper-based packaging. Amcor’s Lift-Off Winter 2025/26 Challenge sought out fibre-based R&D priorities such as home-compostable adhesives and high-performance barrier coatings, rewarding start-ups with joint development opportunities and potential investment of up to $500,000. Amcor has also partnered with start-up Kelpi to develop biobased coating technologies for paper packaging.
Rethinking Materials organized Kraft Heinz’s 2025 Global Innovation Challenge, which sought out flexible barrier solutions for paper and plastic packaging. Kalpana Systems’ spatial Atomic Layer Deposition technology took home the top prize.
Even so, the EMF observes that the cost gap between plastic and paper-based packaging solutions is still an issue, with home-compostable paper-based flexibles typically thought to be two to six times more expensive. Brands are not expected to close the gap alone, and collaboration with suppliers and policymakers is described as a ‘practical necessity’.
“Publishing a report is one thing,” the EMF concludes. “Turning its findings into sustained industry action is another — and that is where the Ellen MacArthur Foundation’s focus now lies.
“The six criteria provide a shared framework, but frameworks only create change when the right actors are working together to apply them.
“The months ahead will be telling. What gives us confidence is that the appetite for effort is there, across a wider range of actors than we have seen before on this issue.”
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