Coca-Cola’s CEO has warned that the company could shift toward using more plastic bottles if aluminium cans become too expensive. The reason? A 25% import tariff on steel and aluminium imposed by former President Donald Trump could make canned drinks cost more across the U.S.

James Quincey, the company’s chief executive, told investors that Coca-Cola would adjust its packaging to stay competitive. “If one package becomes more expensive, we have other options to maintain affordability,” he explained. He also pointed out that if aluminium prices rise, the company could prioritize PET plastic bottles instead of cans.

Rising Aluminium Costs Put Pressure on Packaging Choices

Aluminium plays a big role in Coca-Cola’s packaging strategy. The company has long used cans as a key part of its marketing and sustainability plans. Aluminium cans are also easier to recycle than plastic bottles, making them a more eco-friendly choice.

However, the new tariffs could increase costs. The U.S. imports nearly half of its aluminium. Higher import duties would make it more expensive for beverage makers like Coca-Cola to continue using cans at the same rate.

This is not the first time tariffs have affected the beverage industry. In 2018, when Trump first imposed metal tariffs, some companies received exemptions. However, this time, he has stated that there will be no exceptions for any products or countries.

Coca-Cola Scales Back Sustainability Goals

As aluminium prices rise, Coca-Cola has also adjusted its sustainability goals. The company originally pledged to use 50% recycled materials in its packaging by 2030. But now, it has lowered that target to 35% to 40% by 2035.

For six years, environmental groups have criticized Coca-Cola’s use of plastic. Activists have called it the “top global plastic polluter.” The company’s decision to use more plastic instead of aluminium may lead to further backlash from environmentalists.

While Coca-Cola still promotes recycling efforts, critics argue that shifting to plastic will increase pollution. Many plastic bottles end up in landfills or the ocean, harming wildlife and ecosystems.

Will More Companies Follow Coca-Cola’s Lead?

Coca-Cola is not the only company that could be affected by rising aluminium prices. Other beverage brands, including PepsiCo and Budweiser, also rely heavily on aluminium cans. If costs keep increasing, more companies might shift toward plastic packaging.

This would mark a step back in the fight against plastic pollution. Many companies have pledged to reduce their plastic use, but economic factors could force them to change direction.

Some experts believe that beverage companies will push for alternative solutions. These could include:

• Finding cheaper sources of aluminium.
• Investing in biodegradable or reusable packaging.
• Passing costs to consumers through higher prices.

If more companies follow Coca-Cola’s lead, plastic waste could rise significantly in the coming years.

Trump’s Policy Shift on Plastic Straws

In a separate but related decision, Trump recently reversed a policy that had aimed to cut plastic waste. During his time in office, President Joe Biden had introduced a rule replacing plastic straws with paper ones. The goal was to reduce pollution, which Biden called a “crisis.”

However, Trump’s new executive order brings plastic straws back. Supporters of the decision argue that paper straws are unpopular with consumers. Opponents believe this move will lead to more plastic waste and damage the environment.

The reversal adds to concerns that plastic use in the U.S. will continue to grow, despite efforts to reduce waste.

The Future of Coca-Cola’s Packaging Strategy

For now, Coca-Cola is keeping its options open. The company has not fully committed to moving away from aluminium. However, if tariffs remain in place and prices keep rising, plastic bottles may become the more affordable choice for their business.

Quincey downplayed the overall impact of tariffs, stating that packaging is only a small part of Coca-Cola’s costs. However, if plastic becomes the cheaper option, Coca-Cola may have little choice but to use it more.

The big question is how consumers and environmental groups will react. Many people prefer cans because they are easier to recycle. A shift toward plastic could hurt Coca-Cola’s brand image, especially among eco-conscious buyers.

For now, the future of Coca-Cola’s packaging remains uncertain. Much will depend on aluminium prices, government policies, and public opinion.

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