Coca-Cola delays, downgrades 2030 packaging sustainability goals

HOUSTON (ICIS)–Announced this week, beverage giant The Coca-Cola Company has updated many of their 2030 sustainability goals, in some cases delaying and minimizing targets, in other cases removing tangible goals all together.

All goals have now been extended to a 2035 timeline.

In support of this move, the company notes that they have assessed progress and identified challenges to achieving their original 2030 goals. This comes as companies grapple with the premium often associated with sought after food-grade, clear recycled resins, especially amid a weaker global macroeconomic environment.

“These challenges are complex and require us to drive more effective and efficient resource allocation and work collaboratively with partners to deliver lasting positive impact,” noted Bea Perez, Executive Vice President and Global Chief Communications, Sustainability & Strategic Partnerships Officer at The Coca‑Cola Company.

This comes as the company has faced rocky unit case sales volumes in the North American market over the last several quarters. Most recently, the company posted flat quarter on quarter results, an improvement over negative volumes the prior quarter.

In relation to packaging, the original goal of 50% recycled content by 2030 has been downgraded to a target of 35-40% recycled content in primary packaging. Specifically, they aim to reach 30-35% recycled content in their plastic packaging, which makes up nearly 50% of their packaging mix by number of units.

In 2023, the company noted 27% of their primary packaging material by weight came from recycled content, 17% of which was recycled plastic.

This now leaves a 10-year runway to achieve an additional increase of just 8% to reach their new recycled content target and 13% to reach their recycled plastic target.

Additionally, the company has reduced their beverage container collection target from 100% by 2030 to 70-75% by 2035. As of 2023, the company noted 62% of the equivalent bottles and cans introduced into the market were collected for recycling or reuse.

When looking at packaging design, the company noted they had converted more than 95% of their packaging to recyclable formats, nearing the 100% by 2025 goal.

As many other converters and brand companies have also reckoned with, it can be very difficult to convert the final items, ones which typically require a complete re-design or additional cost to comply with recycling requirements.

The company has now removed a virgin resin reduction goal, amid a poor result in 2023, where virgin plastic use actually increased due to business related growth.

The prior reuse and refill goal was also removed.

Coca-Cola now joins several other brand companies, such as Unilever, PepsiCo who have delayed or reduced their original ambitious goals amid bottom line pressure.

It is uncertain how brand companies will demonstrate their commitment to packaging circularity sustainability in the long term, especially as leaders around the globe continue negotiating towards a global treaty on plastic pollution.

While voluntary goals have boosted demand for recycled plastics markets, many recyclers and suppliers note that actual procurement efforts have been inconsistent. Many believe regulatory requirements are the only solution to securing long term demand for these materials.