FMCG giants form paper packaging consortium to replace flexible plastics
Key takeaways
- Unilever, Nestlé, PepsiCo, P&G, Colgate-Palmolive, and Mars have joined an Ellen MacArthur Foundation consortium to advance paper-based flexible packaging.
- Members will invest in biodegradable coatings, material trials, and collection and recycling systems to reduce flexible plastic waste.
- The initiative seeks scalable, cost-effective solutions while addressing fiber sourcing, packaging performance, and food waste concerns.

The Ellen MacArthur Foundation has launched The PaperFlex Consortium, featuring major FMCG companies Unilever, Nestlé, PepsiCo, Procter & Gamble, Colgate-Palmolive, and Mars, to “accelerate the development” of paper-based packaging.
The consortium, supported by France-based sustainability consulting firm (Re)Set, aims to create paper alternatives to flexible plastics and strengthen collection and recycling systems to divert plastics away from landfill and the environment.
Bio-based materials will also play a role in the project, with the FMCG companies investing in trials for biodegradable coatings and other technologies designed to foster a circular packaging economy.
“Responsible paper-based flexible packaging solutions don’t yet exist at the performance, scale, and cost required,” says Sander Defruyt, strategy lead for plastics at the Ellen MacArthur Foundation.

“This consortium signals strong demand for them, and real ambition from six consumer goods companies to help scale them.”
He adds that the consortium is open to other FMCG companies, innovators, suppliers, and investors. “The faster we develop such solutions, the sooner they reach the markets that need them most.”
The founding six members are able to develop packaging strategies for their own “independent interests” alongside the goals of the consortium.
Scaling paper packaging
The Ellen MacArthur Foundation says that flexible plastic packaging, including sachets, wrappers, and pouches, is the “fastest-growing type” of plastic packaging worldwide, with scalable recycled solutions currently “not widely available.”
Unilever’s Annual Report for 2025 indicated that it has either met its 2025 plastic packaging goals or is on track to meet its future goals. It also indicated that this year, it will increase its focus on the transition to paper-based flexible packaging.
Pablo Costa, head of packaging, digital and transformation, R&D at Unilever, says: “Our dedicated teams are accelerating the development of next-generation paper-based packaging that can be scaled while delivering the experience consumers expect.”
“Through the consortium, we are helping bring together the expertise, investment, and shared learning needed to accelerate innovation and support a responsible transition at scale.”
However, in conversation with Packaging Insights, Greenpeace USA’s global plastics campaign lead Graham Forbes warned that “switching from virgin plastic to another problematic material like paper is just shifting the burden elsewhere.”
Moreover, other experts noted that for certain products, switching materials does not always lead to enhanced sustainability benefits, as it risks poor production protection and increased food waste.
The Ellen MacArthur Foundation says that while the consortium is “crucial” for reducing reliance on plastic packaging, it is also important to ensure that paper fibers are sustainably sourced.
Industry group initiatives
While major FMCG players’ contribution to global plastic waste production has been noted in scientific studies, increasingly, there are cross-sector industry initiatives that aim to foster a circular economy for packaging and reduce plastic pollution.
Allison Lin, global VP of healthy planet and chief circularity officer at Mars, points out that industry partnerships with structured legal oversight, clear guardrails on permissible topics, and an independent third-party convenor can help “accelerate the development of more sustainable packaging in ways that no single company could achieve alone.”
Recently, in the UK, Nestlé, KFC, and McDonald’s backed the Keep Britain Tidy packaging waste reduction pilot, which focuses on collection and recycling initiatives.
“Nestlé believes that paper-based flexible packaging can play a valuable role in addressing virgin plastic reduction and minimizing flexible packaging waste and pollution,” says Gilles Demaurex, Head of Global Packaging Development at Nestlé.
“By joining our efforts under the PaperFlex Consortium, promising paper innovations will be developed and deployed responsibly at scale faster and at lower cost.”
Similarly, Mondelēz International, PepsiCo, and Constantia Flexibles are trialing invisible digital watermarks through the HolyGrail 2030 consortium to help identify and sort flexible packaging for food-grade mechanical recycling in Belgium.











