Aluminium Industry Launches Recycling Alliance to Meet PPWR Goals
Published: 25 Mar 2026
Author: Precedence Research
Aluminium Industry Introduces Recycling Alliance to Meet PPWR Goals
In January 2026, the European Aluminium Foil Association (EAFA) and Flexible Packaging Europe (FPE) launched a joint alliance to boost the recycling of small, hard-to-recover aluminium packaging. This initiative aims to improve collection and sorting, reducing the incineration of items like coffee capsules, and ensuring higher-quality, consistent recycling standards.
Strategic Approach
The alliance uses a shift in waste streams triggered by the growth of Deposit Return Schemes (DRS) for beverage cans. Because cans are diverted from household bins, sorting plants can redirect capacity to capture smaller items. EAFA notes that although aluminium recycling rates are generally high, small packaging and containers are still falling through the cracks. This gap persists even though modern sorting technology is already advanced enough to process these smaller formats effectively. Supported by 16 countries across the aluminium and flexible packaging value chain, the alliance aims to detect waste management bottlenecks.
According to Towards Chem&Materials, the metal recycling market size accounted for USD 899.95 billion in 2025 and is predicted to increase from USD 940.90 billion in 2026 to approximately USD 1,404.30 billion by 2035, expanding at a CAGR of 4.55% from 2026 to 2035 as the emphasis on the conservation of natural resources is increasing across the globe.
Value Chain Alliance
EAFA reports that expanding DRSs in Europe removes beverage containers from household streams, enabling recycling facilities to focus on processing other packaging formats.
Sustainability and Environmental Regulations Accelerate the Metal Recycling Market
- Increasing pressure to minimize carbon emissions and other waste management policies are optimizing the adoption of circular economy models.
- Rapid urbanisation, especially in the emerging regions, has increased the demand for recycled metals in automotive, construction, and consumer goods.
- The ongoing implementation of cutting-edge sorting, shredding, and separation technologies, such as magnetic separation and X-ray fluorescence, enhances recovery rates and grows the economic viability of recycling.
- The increasing cost of raw materials and the demand for supply chain security have led market players to depend more on recycled metals.
- Stringent government mandates require higher recycling rates to combat climate change. Many market players are adopting recycled metals to meet Corporate Social Responsibility (CSR) and net-zero emission goals.