SWITZERLAND-Nespresso, a leading manufacturer of coffee machines and capsules, has launched its paper-based compostable capsules in France and Switzerland as part of efforts to offer consumers more sustainable packaging options.
Nespresso already offers aluminium capsules that are both recyclable and made using 80% recycled material.
The use of aluminium alongside plastics in coffee capsules has increasingly become under scrutiny in the recent past due to their perceived and real impacts on the environment.
The European Commission is even drafting a new packaging regulation that could see capsules made of standard aluminium and plastics disappear from shelves.
This seems to have informed Nespresso’s move to develop a more environmentally friendly alternative, a process that took more than three years to accomplish.
The company, which reported more than CHF6 billion in revenue in FY2022, says that the home compostable paper-based capsule will deliver high-quality coffee without compromising on the taste experience.
“We are excited to announce our first-ever paper-based home compostable capsule, which will complement our offering of aluminum capsules. This is about yet another sustainable choice, without compromising on quality,” Guillaume Le Cunff, Nespresso CEO noted.
Nespresso is a leader in the coffee pods market which is estimated to be worth about US$25.9 billion and is projected to grow by 7. 3 % CAGR in the next five years, according to a report by Forbes.
The company which sells about 14 billion Nespresso capsules is however facing increased competition from smaller players who have introduced biodegradable capsules that can be used for Nespresso machines.
The company is responding with its new collection of paper-based home-compostable pods first available in France and Switzerland as a pilot to gather customer feedback.
Nespresso is however not planning to completely replace its aluminium pods with plastic ones.
“The objective is not to replace all the aluminium pods with paper, but to give the consumer more choice. It’s an alternative for sustainable options,” Le Cunff said.
It particularly targets consumers who may not be aware that aluminium capsules are recyclable and may be more comfortable with the compressed paper pulp pods.
“People who have never considered Nespresso before will buy this capsule, and we may re onboard people who have left.”