PepsiCo’s reusable packaging rethink stirs waste management debate

PepsiCo has scrapped its 20% reusable packaging by 2030 target. Instead, the beverage giant will now follow a broader agenda aimed at 97% of its packaging being reusable, recyclable, or compostable by the same deadline.

The company plans to focus on key packaging markets “where it anticipates its initiatives will have the greatest positive effect,” but waste management associations and environmental NGOs are voicing mixed responses to the change. 

Dan Cooke, director of Policy and External Affairs for the Circular Economy Institute and Chartered Institution of Wastes Management (CIWM), tells Packaging Insights that PepsiCo’s intention to further reduce its use of virgin plastic and improve packaging design to be more reusable, recyclable, and compostable is welcome from a circularity and resource-efficiency perspective. 

“It should be noted that there remain challenges with the integration of truly compostable packaging with established recycling systems in many countries.”

“It’s interesting to note PepsiCo’s refined sustainability goals in relation to packaging, which have obviously been carefully considered in a global context and incorporate decisions based on key impacts and practicable priorities.”

“Reusable packaging systems for some beverages are established in parts of the world and are likely to offer benefits in the wider transition to more circular systems.”

NGOs demand accountability

Oceana’s senior vice president of Strategic Initiatives, Matt Littlejohn, argues that PepsiCo’s removal of its reusable packaging target will have negative impacts.

“By killing its reuse goal, and other goals that would actually reduce plastic packaging, PepsiCo is hurting our oceans and the environment. PepsiCo is one of the largest polluters in the world according to the Break Free from Plastic Brand Audit and has a responsibility to address its plastic problem,” he explains.PepsiCo can reduce plastic pollution by moving toward reusable glass bottles, suggests Littlejohn.

“The best way for PepsiCo to reduce plastic pollution is not by abandoning goals but by dramatically increasing the use of refillable bottles — which can be used up to 50 times if made of glass.” 

Littlejohn stresses that a 10% increase in reusable beverage packaging by 2030 can eliminate the need for over 1 trillion single-use plastic bottles and cups and could prevent 153 billion of these containers from entering the world’s oceans and waterways.

“PepsiCo’s customers, employees, investors, and government officials who are concerned about the impact of plastics on our planet and health should hold the company accountable,” he says.

“This should include pushing the company to reduce products sold in single-use plastic packaging, increase products sold in reusable packaging, and report on the share of products sold in reusable formats.”

New circularity goals

In addition to cutting its reuse target, PepsiCo ditched its goal to “cut virgin plastic from non-renewable sources per serving” and scaled back other goals related to its plastic packaging use. 

PepsiCo asserts that by prioritizing efforts in key packaging markets, working to reduce its use of virgin plastic, and improving the design of its packaging, it will focus on investments that improve the packaging life cycle. 

The company says its “refined” packaging goal of continuing reusable, recyclable, or compostable efforts remains ambitious and will continue to require investment, innovation, and cross-sector collaboration to drive systemic change and support the business. 

PepsiCo says it is aware of the potential challenges its new goals might bring. “For example, India only passed laws allowing rPET for beverage packaging in 2023, with food packaging added this year, while China does not allow rPET inclusion in food-grade packaging,” the company highlights.

Following in Coca-Cola’s footsteps

The news follows a similar move from Coca-Cola last December, when the company erased its target to achieve 25% reusable packaging by 2030. While the company planned to continue reuse investments, NGOs called the move “frustrating.”