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The Economics of Plastics

The Chips Packet Problem

Why multilayer packaging used for chips, biscuits and sachets is almost impossible to recycle profitably, and how India's sachet economy makes it common.

Multilayer packaging combines layers of plastic, aluminium and paper.

Uses

  • Chips and snack packets.
  • Biscuits.
  • Sachets of shampoo, detergent and ketchup.

Why multilayer

  • Keeps products fresh.
  • Light and cheap.

Recycling problem

  • Layers are hard to separate.
  • Waste pickers don’t collect them because they have little value.
  • They end up in drains, landfills and rivers.

The sachet economy

  • In India, sachets let low-income households buy small amounts affordably.
  • Companies sell billions of sachets, creating huge waste.

Solutions

  • Co-processing in cement kilns as fuel.
  • Mono-material packaging that’s easier to recycle.
  • EPR targets pushing companies to collect.
  • Refill systems.

Lesson

Product design determines whether waste can be recycled.

The sachet mountain

A village's drains fill with empty shampoo sachets, which no scrap dealer will buy.

Thinking all plastic packets can be recycled

Multilayer packets are nearly impossible to recycle profitably.

Key takeaways
  • Multilayer packaging combines plastic, aluminium and paper.
  • It's used for chips, biscuits and sachets.
  • It has little recycling value.
  • Design changes and co-processing can help.
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