Nestlé and PepsiCo are among six FMCG companies joining forces to try to speed up the development of paper-based alternatives to flexible plastic packaging.

The PaperFlex Consortium, convened by the Ellen MacArthur Foundation and operated by (RE)SET, also includes Colgate-Palmolive, Mars, Procter & Gamble and Unilever.

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In a statement today (16 September), the group said it “will focus on markets where flexible plastic packaging is widely used and where a lack of collection and recycling systems could increase their likelihood of ending up in the environment.

“For those markets, the consortium aims to design alternatives that are recyclable as collection systems improve, and biodegradable in the event they unintentionally end up in the environment.”

Flexible plastic packaging is widely used for products including confectionery, snacks and personal-care goods.

The consortium will focus on technologies such as biodegradable coatings and other materials that can provide product protection, preserve shelf life and improve consumer usability, while performing more effectively on production lines.

Sander Defruyt, Ellen MacArthur Foundation strategy lead for plastics, said: “Responsible paper-based flexible packaging solutions don’t yet exist at the performance, scale and cost required.”

The initiative comes as confectionery and other food companies struggle to reduce their reliance on flexible plastics.

In 2024, flexible plastic accounted for 49% of Mars’ packaging, compared with 68% at Mondelez International and 25% at Ferrero, according to Ellen MacArthur Foundation data.

Paper-based alternatives have attracted investment, but they have yet to deliver the combination of performance, scale and cost required for widespread adoption.

The foundation’s report earlier this year identified these gaps as key barriers.

Paper has limited barrier properties, can tear during production and is difficult to seal without additional coatings or layers, according to Unilever.

These challenges are particularly significant for products containing fat or moisture, as well as liquids such as laundry detergent and shampoo.

In a statement, Pablo Costa, Unilever global head of packaging, said: “No single company can address the cost, infrastructure and scaling barriers alone. Collaborations and partnerships are absolutely crucial to helping solutions reach the market more quickly, increase collective impact and reduce costs over time.”

In a comment published alongside the launch announcement, Gilles Demaurex, Nestlé head of global packaging development, said: “Nestlé believes that paper-based flexible packaging can play a valuable role in addressing virgin plastic reduction and minimising flexible packaging waste and pollution.

“By joining our efforts under the PaperFlex Consortium, promising paper innovations will be developed and deployed responsibly at scale faster and at lower cost.”