The Ellen MacArthur Foundation on 13 October 2026 published a policy agenda, Circular by nature, calling for bio-based plastics, textiles and chemicals to be governed by rules distinct from those for fossil-derived materials. The foundation wants EU packaging and plastics legislation, now being finalised, to separate claims of bio-based origin from claims of verified circularity, and warns that unmanaged bio-based and compostable plastics can contaminate conventional recycling streams.
Why this mattersProducers of bio-based polymers face a push to redefine EU recyclability and compostability rules just as the legislation is being settled, affecting how their materials are classed.
- The report, titled Circular by nature, was published on 13 October 2026.
- The foundation argues bio-based plastics, textiles and chemicals need policy treatment separate from fossil-derived material rules.
- It calls for regulators to separate claims of material origin from claims of circularity in EU packaging and plastics legislation now being finalised.
- The agenda states bio-based content alone is not a credential; verified material circulation through reuse, recycling or controlled biodegradation is what counts.
- The foundation warns that compostable and bio-based plastics entering conventional recycling streams can contaminate bales and degrade output quality.
- The document sets no binding rules itself; it is framed as directions for lawmakers to convert into law.
Nestlé has set a new target to cut virgin plastic use by 12% to 17% by 2030 against a 2018 baseline, replacing its earlier goal of recyclable packaging alone. The company expects most of the reduction to come from higher recycled content, followed by material reduction and paper substitution, with reuse, refill and alternative materials making up the rest. The plan takes into account Nestlé's planned roughly USD 3.4bn sale of a stake in its water business.
Why this mattersA target shift by one of the largest packaging buyers toward recycled PET and paper substitution will steer demand and investment across recycled-content and fibre-based packaging suppliers.
- Nestlé targets a 12% to 17% cut in virgin plastic use by 2030 versus a 2018 baseline.
- Recycled content is expected to deliver 50% to 60% of the planned reduction, from about 21% recycled content in plastic packaging as of 2025.
- Reduction and elimination measures, including paper swaps, are expected to contribute 30% to 40% of the improvement.
- Alternative materials and reuse or refill solutions are expected to contribute the remaining 10% to 15%.
- Nestlé's total plastics packaging use fell to 0.86 million metric tons in 2025 from 1.7 million tons in 2018.
- The target factors in Nestlé's planned roughly USD 3.4bn sale of a stake in its water business.
Colgate-Palmolive, Mars, Nestlé, PepsiCo, Procter & Gamble and Unilever have become founding members of the PaperFlex Consortium, convened by the Ellen MacArthur Foundation and (RE)SET, to jointly fund and trial paper-based alternatives to flexible plastic packaging such as sachets, wrappers and pouches. The consortium targets markets where flexible plastic use is high but collection and recycling infrastructure is limited, and remains open to further brand owners, innovators, suppliers and investors. Each member will continue to make its own packaging decisions independently.
Why this mattersA joint R&D push by six of the largest packaging buyers could accelerate paper-based substitutes for flexible plastic, reshaping demand for converters and material suppliers.
- Colgate-Palmolive, Mars, Nestle, PepsiCo, Procter & Gamble and Unilever are founding members of the PaperFlex Consortium.
- The consortium is convened by the Ellen MacArthur Foundation and powered by (RE)SET.
- Work will cover technologies including biodegradable coatings to improve product protection, shelf life and manufacturing-line performance of paper-based materials.
- The initiative follows an Ellen MacArthur Foundation report published earlier in 2026, endorsed by 48 businesses, NGOs, investors and academics, setting six design criteria for paper-based alternatives.
- Flexible plastic packaging, including sachets, wrappers and pouches, is described by the Foundation as the fastest-growing type of plastic packaging globally.
- The consortium remains open to additional FMCG companies, innovators, suppliers and investors.
- The Ellen MacArthur Foundation says responsible paper-based flexible packaging does not yet exist at required performance, scale and cost.
- Research priorities include coatings, product protection, shelf life, consumer usability and manufacturing-line performance.
- The consortium targets flexible packaging formats sized A5 or smaller, including sachets, wrappers and pouches, in markets such as India, Indonesia and the Philippines that lack formal plastic collection systems.
- Ellen MacArthur Foundation said it has invited further companies to join the consortium.
- A separate EU flagship project, BIOWRAP, targets replacing over 100 million square metres of plastic bubble wrap within five years of the project ending, aiming for a 90% paper recycling material recovery rate
- Ellen MacArthur Foundation states commercially viable paper-based replacements do not yet exist at the performance, scale and cost required across all applications
- Unilever has doubled its packaging R&D spending and built a team of more than 60 material scientists focused on paper and barrier coatings.
- Unilever cites its 2024 UK launch of a grease-resistant paper-based Knorr stock cube wrapper as a reference case for the consortium's work.
- The Ellen MacArthur Foundation's 2030 Plastics Agenda for Business names small-format flexible plastic packaging as one of three key systemic barriers to tackling plastic waste.
- Coverage specifies the consortium targets small-format flexible plastic packaging such as sachets and pouches
- The Ellen MacArthur Foundation said no responsible paper-based flexible packaging solutions yet exist at the required performance, scale and cost.
Unilever has become a founding member of the PaperFlex Consortium, set up by the Ellen MacArthur Foundation and consultancy (Re)set to develop paper-based alternatives to plastic flexible packaging such as sachets, wrappers and pouches. Colgate-Palmolive, Mars, Nestle, PepsiCo and Procter & Gamble are also founding members, funding joint trials of materials intended to protect products and run on existing filling lines.
Why this mattersSix of the largest consumer goods groups backing paper flexibles as a group could accelerate converter investment in fibre-based barrier packaging for sachets and pouches.
- Unilever joined the PaperFlex Consortium in September 2026.
- Founding members also include Colgate-Palmolive, Mars, Nestle, PepsiCo and Procter & Gamble.
- The consortium was formed by the Ellen MacArthur Foundation and environmental consultancy (Re)set.
- Members will jointly fund and run trials of paper-based flexible packaging as a plastic alternative.
- Unilever says it has doubled its packaging R&D investment and employs more than 60 material scientists working on paper-based materials and barrier coatings.
- The consortium's launch builds on a 2026 Ellen MacArthur Foundation report backed by 48 companies, NGOs, investors and academics
- Six design criteria for the transition include recyclability, biodegradability and responsible sourcing of raw materials
- The consortium remains open to additional companies, suppliers, innovators and investors
