European Packaging Groups Form Alliance to Lift Recycling of Small Aluminium Formats

The European Aluminium Foil Association and Flexible Packaging Europe have launched a new industry alliance aimed at improving the recycling performance of small aluminium packaging, including coffee capsules, as the European Union prepares to enforce stricter rules under its Packaging and Packaging Waste Regulation, according to industry reporting. The move targets a persistent gap in Europe’s recycling system that risks leaving certain aluminium formats non-compliant with future “recycled-at-scale” requirements.

Aluminium packaging overall achieves comparatively high recycling rates across Europe, supported by well-established collection and remelting infrastructure. However, data cited by industry groups show that small-format items such as coffee capsules, dairy lids, confectionery foils and miniature containers are far more likely to be lost in mixed waste streams. In many regions, these items are incinerated, with only limited metal recovery from bottom ash, a practice that regulators have signaled will not qualify as sufficient recycling under the PPWR.

Recent advances in sorting technology mean that large, modern facilities can now separate small aluminium fractions effectively, observers note. Yet access to such infrastructure remains uneven across member states, creating regional disparities in recycling outcomes. At the same time, the expansion of deposit-return schemes for beverage containers is expected to remove cans from household waste streams, prompting waste operators to reassess how remaining packaging materials are handled.

The new alliance aims to address these structural weaknesses by coordinating action across the value chain, from packaging producers and brand owners to recyclers and waste management actors. According to EAFA, the group will focus on identifying bottlenecks in collection and sorting systems, commissioning targeted studies and supporting the practical rollout of technical and operational improvements at national and regional levels.

Sixteen companies have confirmed their participation ahead of the alliance’s official launch on 1 January 2026, including Amcor, Nestlé Nespresso, JDE Peet’s, Lindt and Constantia Flexibles. Industry analysts say the breadth of participation reflects growing concern among manufacturers that fragmented recycling performance could undermine aluminium’s positioning as a circular packaging material under the new EU framework.

Industry groups argue that without coordinated intervention, small aluminium packaging risks becoming a regulatory blind spot despite aluminium’s intrinsic recyclability. They add that improving recovery rates will require not only better sorting technology, but also clearer guidance for consumers and stronger alignment between national waste systems.

Looking ahead, observers say the alliance’s effectiveness will be judged on whether it can translate studies and pilot projects into measurable improvements before the PPWR deadlines begin to bite. If successful, the initiative could help standardize approaches to small aluminium recycling across Europe and strengthen compliance for brands operating in multiple markets.

Source: The European Aluminium Foil Association (EAFA)

SUNSHINE Spotlight: The new alliance signals a coordinated industry push to ensure small aluminium packaging keeps pace with EU recycling rules rather than falling through the cracks of Europe’s waste systems.