Innovation

Nespresso, known for its premium coffee, has introduced compostable capsules to provide an alternative to consumers in disposing of their used capsules: recycling or composting. This innovation aligns with and enhances the company's mission to deliver excellence in every cup while minimising environmental footprint. The new capsules are designed to be home-compostable, enabling consumers to compost them in their gardens, thus promoting a circular economy. By making these capsules compatible with existing Nespresso machines, the company ensures that no additional equipment is needed, facilitating consumers’ choice depending on their preferences for their capsule disposal while offering the taste and quality they expect from the brand. This innovation is part of Nespresso's broader commitment to advancing sustainability in the coffee industry, in line with its B Corp™ certification, which emphasises social and environmental performance, accountability, and transparency.

Developing these compostable capsules, made of 82% paper, represents a significant technological achievement, completed in just three years—much faster than the industry standard of five to seven years. The challenge was maintaining the coffee's quality and integrity, which involved protecting it from moisture, light, and oxygen and ensuring the capsules withstand the high pressure of Nespresso machines during extraction. This initiative supports the SDGs by promoting sustainable consumption and production. Nespresso's compostable capsules meet the growing consumer demand for compostable products and showcase Nespresso's leadership in driving positive change within the industry. This innovation underscores the company's commitment to sustainability and circularity, reflecting a deep sense of mission and purpose in its efforts to foster environmental stewardship and a better world.

Inspiration

The inspiration for Nespresso's compostable capsules originated in 2019, driven by increasing consumer demand for compostable packaging. The trend towards compostability and the emerging regulations also played crucial roles. However, Nespresso's commitment went beyond simply following trends; it aimed to maintain its promise of delivering high-quality coffee while providing another circular alternative for consumers through composting.

Existing solutions in the market often fell short, requiring industrial composting and compromising taste and quality. Nespresso set out to create a home compostable solution that did not sacrifice the coffee experience. This ambition was fueled by the company's core values of innovation and sustainability. The challenge was immense: “Our brief was to design something as accurate as aluminium, which protects the coffee from oxygen, light and moisture, and still delivers the promise of quality in the cup, all whilst allowing for effective home-composting” noted Hélène, Head of Global Operations at Nespresso. The team had to balance these demands with the need for the capsules to fit over 20 existing machine types and to develop new coffee blends that could deliver the same quality in this different capsule.

Overall impact

“If we had to do this innovation again, we would do the same”, affirmed Hélène, indicating the widespread success. The introduction of compostable capsules has had significant short-term and long-term impacts on Nespresso, society, and the environment. In the short term, it has helped strengthen Nespresso's brand perception, aligning it closely with sustainability and responding to consumer demands for more circular choices. The successful launch in major markets like France and Switzerland has demonstrated consumer acceptance and satisfaction, evidenced by independent taste tests ranking the new capsules highly (RTS: A bon entender, Oct 2023).

In the long term, the innovation can reduce coffee consumption's environmental footprint through precision consumption and circularity. The capsules' compostability means they can break down naturally, helping to reduce waste and the associated greenhouse gas emissions as with aluminium recycling. Additionally, the initiative has reinforced Nespresso's position as a leader in sustainability within the coffee industry. The compostable capsules are part of a broader strategy to address the total carbon footprint of Nespresso's products, including sustainable farming practices through the Nespresso AAA Sustainable Quality™ Program, highly efficient manufacturing processes, and, of course, circularity through recycling and composting.

Business benefit

The compostable capsules have provided Nespresso several business benefits, strategically enhancing its competitive position. Firstly, introducing compostable capsules has helped attract new consumers, particularly those interested in composting versus recycling. These consumers, who might have avoided single-use capsules due to sustainability concerns, are now drawn to Nespresso's different circular alternatives: aluminium for recycling and paper-based composting. This innovation is particularly appealing in regions with stringent environmental regulations and high demand for sustainable products. By expanding its product range to include compostable capsules, Nespresso has successfully created a more inclusive offering to help answer the needs of more consumers.

This innovation has also provided Nespresso with a platform to highlight its long-standing sustainability initiatives, such as its B Corp™ certification, the Nespresso AAA Sustainable Quality™ Program, and extensive recycling facilities. For years, Nespresso's efforts in sustainability were overshadowed by negative perceptions regarding aluminium capsules. However, this negative perception was not entirely valid. Hélène noted that “the carbon footprint of one cup of coffee is more than just the capsule because about 40% of the carbon footprint of a capsule comes from the green coffee itself, making the footprint of aluminium and compostable capsules comparable. Introducing compostable capsules allows Nespresso to re-engage with consumers and showcase its commitment to environmental responsibility. By aligning its product offerings with its sustainability values, Nespresso can shift consumer perception from scepticism to recognition of the brand’s genuine efforts in reducing its environmental footprint. The success of the compostable capsules has bolstered Nespresso's brand equity, contributing to its ranking among Interbrand's Top 100 Brands and reinforcing its image as a premium, responsible brand. “It's the first innovation I'm taking part in where I see so quickly the impact it has on the perception of the brand while not compromising what we stand for as a brand”, stated Hélène. “At Nespresso, we now say that the compostable paper capsule has a strong halo effect on the brand, including the aluminium capsule”.

Furthermore, the innovation of compostable capsules has positively impacted employee engagement and morale. Employees at Nespresso feel a heightened sense of pride and purpose, knowing they are part of a company that leads in sustainability. This alignment with the company's values fosters a more robust internal culture and supports long-term talent retention. Additionally, due to its 30 years of experience and smaller size than other Nestlé strategic business units, Nespresso often spearheads innovations and trends later adopted across different business areas at Nestlé. This has been evident in the responsible sourcing of raw materials and compostable packaging. Employees are more motivated and committed, seeing the tangible impact of their work on both the environment and the brand’s reputation. This sense of pride and engagement enhances the workplace atmosphere and drives Nespresso's ongoing success and innovation.

Social and environmental benefit

Over the past 30 years, Nespresso has introduced numerous innovations with significant impacts on social sustainability, including achieving B Corp™ certification and implementing the Nespresso AAA Sustainable Quality™ Program. The company's latest innovation focuses on the environmental effects of its coffee capsules by creating the first home-compostable capsules, representing a pioneering step in the industry as the first to be made from paper. This starkly contrasts the bioplastic capsules used widely in the industry, which require industrial composting facilities to break down. This advancement underscores Nespresso's commitment to reducing waste and promoting eco-friendly consumer habits.

The environmental benefits of Nespresso's compostable capsules are profound. Although the overall carbon footprint of a cup of coffee from these capsules is comparable to that of aluminium ones – with packaging accounting for only about 10% of their carbon footprint– the key advantage of the paper capsules lies in their end-of-life disposal. For coffee drinkers who do not wish to engage in recycling, the compostable capsules can provide an alternative that can help lower their environmental impact. Moreover, unlike aluminium, which requires significant energy to recycle, and bioplastics, which need specialised composting facilities, paper capsules can decompose naturally, even in standard landfill conditions, reducing their long-term environmental impact. This innovation simplifies the composting process for consumers and encourages broader adoption of sustainable practices across the coffee industry, paving the way for a more environmentally responsible future.

Interview

Hélène Kovalevsky, Head of Global Operations