February 2025 Blow Molding Blog
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February 22, 2025
Coca-Cola Considers Increasing Plastic Bottle Usage Amid Tariff Concerns
Coca-Cola Considers Increasing Plastic Bottle Usage Amid Tariff Concerns
Coca-Cola may shift towards greater plastic bottle usage in the United States, following new economic pressures. CEO James Quincey hinted at this possibility during a recent investor call, citing the impact of a 25% import tariff on steel and aluminum. The tariff is expected to raise costs for aluminum packaging, potentially making cans more expensive for beverage companies like Coca-Cola.
“If one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,” said Quincey. “For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles.”
This shift would mark a step back from Coca-Cola’s recent push towards sustainability. The company had been increasing its use of aluminum cans, which, while costlier, are more recyclable over time. Late last year, Coca-Cola also revised its sustainability goal of using 50% recycled packaging by 2030, lowering its target to 35%-40% by 2035. Environmental groups have frequently criticized the company for its role in plastic pollution.
Quincey reassured investors that packaging remains a relatively small portion of overall costs, suggesting limited financial impact from the tariffs. However, a move towards more plastic bottles could raise concerns among sustainability advocates, as the company navigates between economic challenges and environmental commitments. Learn more about this topic here.
“If one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,” said Quincey. “For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles.”
This shift would mark a step back from Coca-Cola’s recent push towards sustainability. The company had been increasing its use of aluminum cans, which, while costlier, are more recyclable over time. Late last year, Coca-Cola also revised its sustainability goal of using 50% recycled packaging by 2030, lowering its target to 35%-40% by 2035. Environmental groups have frequently criticized the company for its role in plastic pollution.
Quincey reassured investors that packaging remains a relatively small portion of overall costs, suggesting limited financial impact from the tariffs. However, a move towards more plastic bottles could raise concerns among sustainability advocates, as the company navigates between economic challenges and environmental commitments. Learn more about this topic here.
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