Coca-Cola CEO James Quincey recently said that the company may sell more drinks in plastic bottles in the US, if President Donald Trump’s tariffs on aluminium make cans more expensive.
This decision comes after Trump imposed a 25% import tax on all steel and aluminium entering the US, which could significantly increase the price of canned food and beverages.
The United States imports nearly half of its aluminium, according to the United States Geological Survey, making the tariff a major cost driver for manufacturers. Unlike in 2018, when many can-makers got exemptions from similar tariffs, Trump has ruled out any exclusions this time around, further escalating costs for aluminium-dependent industries.
In December 2024, Coca-Cola restructured its sustainability targets, reducing its goal of using 50% recycled materials in packaging by 2030 to 35-40% by 2035. This decision did not go down well among critics from environmental groups, who have consistently labeled Coca-Cola as the “top global plastic polluter” for six consecutive years.
Quincey emphasized that the company has flexibility in its packaging options, stating, “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.” He added, “For example, if aluminium cans become more expensive, we can put more emphasis on PET [plastic] bottles.”
The Environmental and Cost Trade-Offs of Using Aluminium Cans vs. Plastic Bottles
In recent years, Coca-Cola has increasingly used aluminium containers as part of its marketing and sustainability strategies. Aluminium cans are much more recyclable than plastic bottles, making them a preferred choice for environmentally conscious consumers. However, they are also more expensive to produce, and the new tariffs could further drive up costs.
Quincey downplayed the overall impact of the tariffs, noting that packaging represents a relatively small portion of Coca-Cola’s costs. Nevertheless, the shift toward plastic bottles could undermine the company’s sustainability efforts and exacerbate its reputation as a leading contributor to plastic pollution.
Trump’s Executive Order Reverses Plastic Straw Ban, Adding to Pollution Concerns
In a separate move that could worsen plastic pollution, Trump recently signed an executive order ending a US government initiative to replace plastic straws with paper alternatives. This decision reverses a measure signed by former President Joe Biden, who had called plastic pollution a “crisis.”
Environmental advocates argue that this move, combined with Coca-Cola’s potential shift to plastic bottles, could lead to a significant increase in plastic waste. As one of the world’s largest beverage companies, Coca-Cola’s packaging decisions have far-reaching implications for global sustainability efforts.
Long-Term Implications for Coca-Cola and the Environment
Coca-Cola’s potential pivot to plastic bottles highlights the complex balance between economic pressures and environmental responsibility. While the company seeks to maintain affordability for consumers, its dependability on plastic packaging could further damage its reputation and contribute to the growing global plastic pollution crisis.
As the debate over tariffs and sustainability persists, Coca-Cola’s decisions will likely remain under scrutiny from both investors and environmental groups to see whatever unfolds.
