Paper bottles: Do they have the potential to revolutionize the market?

As brands look to be more sustainable, glass is in the firing line as a heavy packaging format with associated emissions during transportation, and with hefty energy requirements for its production and recycling. Plastic bottles continue to face a consumer backlash. Cans and cartons are growing in popularity: but also come with their advantages and disadvantages.

Do paper bottles have the potential to become a mass market option that ticks all the boxes?

Constructing a paper bottle​

A paper bottle, in its simplest form, is a bottle made from paperboard. That’s then accompanied by a food grade liner, which is needed to create a waterproof barrier to contain the liquid.

The key advantages of paper bottles include the fact that they can be made from a recycled and recyclable material (paper) and they are considerably lighter than glass, lowering emissions in transportation.

Glass bottles might be a traditional expectation in wine and spirit categories. But that shouldn’t be the default, says UK firm Frugalpac, which launched its Frugal Bottle (94% paperboard) in 2020.

The bottle is now used by 45 brands across 25 countries, the the company received the King's Award for Enterprise in the innovation category earlier this year.

CEO Malcolm Waugh sees the momentum towards alternative formats to glass starting to gather: mainly driven by consumers who want to make more sustainable choices, and companies that see they need to be able to offer them.

“The reality is that there is no need for 90% of the world’s wine to be in heavy, carbon intensive glass bottles as it’s consumed in less than a year," he said.

“Many consumers will be unaware that glass bottles account for around 40% of wine’s carbon footprint. Switching to more sustainable lighter packaging is easy for consumers when the impact is understood. We’re already beginning to see more sustainable lighter packaging on shelves from aluminium cans, to bag in box and even bag out of box.”

But what's more, says Waugh, is that such formats will be necessary to the beverage industry moving forward.

“A 2023 Institute of Grocery Distribution report found that a third of the total carbon impact in retail packaging comes from the beer, wine, spirits and non-alcoholic drinks category. To meet the industry’s commitment to halve the environmental impacts of their packaging systems by 2030 will require major changes."

Creating a paper bottle

A paper bottle, of course, is not a magic solution: still using material and resources. So researchers are working hard to optimize this format into the most sustainable option possible. That might mean looking at how the paperboard outer is created (is it from recycled and recyclable materials, and from certified sources such as FSC?), the material used for the plastic lining (is it recyclable, can it come from recycled plastic (rPET), or could the plastic be bio-based?), and the most eco-friendly closures.

At the same time, researchers need to keep their eye on how sturdy the format is: can it withstand impacts during production and transportation and reach shelves in a pristine condition? And how does the format meet consumers' expectations - does it pour well and can it look good on the table?

Then there's the question of how the bottle is recycled: if the materials can be recycled in existing streams and if the outer and inner layer need to be separated for recycling.

Pernod Ricard vodka brand Absolut has been pioneering a paper bottle for its brand, which it is currently piloting in the UK market.

"The greatest challenge lies in adapting fiber-based packaging to meet the rigorous demands of our product," explained Elin Furelid, Future of Packaging Director, The Absolut Group.

"Spirits like vodka require packaging that ensures both durability and the integrity of the liquid, something glass has long perfected. With fiber, we're charting new territory. Through our piloting process, we're working to reduce the plastic barrier while maintaining the high standards our product requires. It’s a balancing act between innovation and performance, not only for us but for most industries with demanding products."

Frugalpac spent three years developing its paper bottle, starting with a hand-made prototype. Malcolm Waugh points out the challenges of paper bottle development go well beyond the bottle design itself.

"Our journey also involved the sourcing of suitable raw materials and the building of a supply chain for these materials, including a dedicated manufacturing team to allow us to present the international market with product for technical filling trials and in store market testing," he explained.

"Parallel to the technical and supply chain work, the company worked with investors to ensure there was a steady flow of investment to ensure we concluded the project."

Paper bottles: Current specifications

The Frugal Bottle​

The Frugal Bottle is made from 94% recycled paperboard with an easily separable food grade pouch, like those in bag in box wines.

It weighs 83g - five times lighter than glass bottles – and uses six times less carbon and energy to produce and dispose. This means it has a carbon footprint 84% lower than glass bottles.

From April 2025, the pouch – currently a polyethylene metallised polyester laminate - will be upgraded to a mono material polyethylene pouch.

“Replacing this will see much higher recycling rates due to the more advanced recycling infrastructures for mono materials around the world. The new pouch will take advantage of the developments in advanced polyethylene to achieve the same shelf life and drop height characteristics of the current MET PET pouch.”

Once the beverage has been consumed, drinkers press down on the edges to separate the cardboard and inner lining for recycling.

Absolut's paper bottle​

Absolut's first-generation paper bottle consists of 57% FSC-certified paper with a thin plastic inner lining. The brand's goal is to reduce the plastic: with the ambition for the next generation bottle to achieve at least 85% fiber content, ultimately working towards a fully bio-based solution.

This bottle is designed to complement Absolut's glass packaging, offering the right material for the right market, depending on recycling capabilities and consumer preferences.

Absolut is part of Paboco and the Pioneer Community, consisting of the global companies Carlsberg, The Coca Cola Co., Proctor & Gamble and L’Oreal.

Johnnie Walker paper bottle​

Diageo has launched a paper-based bottle for Johnnie Walker Black Label.

The bottle is made from 90% paper and a 'very thin' plastic liner. This makes the paper-based bottle around 60% lighter, with an initial life cycle analysis on the prototype showing up to 47% reduction in carbon emissions, compared to the glass bottle equivalent. 

Created in partnership with PA Consulting, as part of the Bottle Collective with PA and PulPac, the bottle uses a Dry Molded Fiber innovation. The bottle closure was developed in collaboration with PulPac, Setop DIAM and PA and is made from a combination of cork and similar Dry Molded Fiber paper technology as the bottle.

Diageo is trialing the 70cl Johnnie Walker bottle in the on-trade​. One of the key points of the trial will be to assess the bottle's recyclability: the plastic liner is designed to not require consumer or bartender disassembly (as it is not attached or bonded to the outer paper layer), assisting recycling facilities to separate without disrupting the recycling process. The stopper is not currently recyclable: but alternatives are in development.

Are consumers convinced by paper bottles?

Glass remains, by far, the most dominant format for wine and spirits. Paper bottles might offer a certain amount of novelty: but one of the main challenges is that consumers have been used to buying and using glass bottles all their lives, and are used to a premium look and feel.

In categories such as wine, there's also the need to adapt to a different experience: there's no popping of the cork, and the weight of the bottle while pouring is completely different.

But paper bottle innovators are confident that the new format has plenty of advantages, and that these will be ample to convince new consumers. The new generation of legal drinking age consumers are less tied to traditions than older generations, and they're more open to trying new formats.

Then there's also the ability to take paper bottles into situations and occasions where bottles have not been able to go.

“Brands who have introduced the Frugal Bottle into their range have seen their sales increase by 700%,” says Waugh of Frugalpac.

“This growth has been achieved through entry to new regions and countries, increased usage occasions where glass is not practical or weighs too much, and by appealing to consumers tired of conventional offerings.

“This has been supported by high levels of repeat purchase.”

And paper bottles have a lot to offer in terms of visual appeal.

"As they are made from paperboard, customers can use the entire bottle as a blank canvas," said Waugh. "This gives a 360 degree opportunity for drinks producers to communicate the brand, the product information, the low carbon credentials and how to easily recycle it."

Scaling up the tech​

What needs to happen for paper bottles to become a mass proposition? Creating the manufacturing infrastructure with the ability to scale up is key.

“For mass adoption of paper bottles, we must refine production processes and scale up capacity," said Furelid of Absolut. "Given the relatively small size of the spirits industry, cross-industry collaborations—such as those within the Paboco Pioneer Community of major global brands—will be essential for advancing this new packaging format. As a global brand, it’s crucial that we provide the right material for the right market, considering the effectiveness of recycling systems for various packaging types. We view paper bottles as a complementary option to existing solutions like glass, offering consumers sustainable choices that are easy to adopt wherever they are.”

Paboco, for example, is opening a new state-of-the-art manufacturing site and development center​ in Denmark. The factory aims to deliver over 20 million paper bottles by the end of 2025, although these are likely to be skewed towards the beauty and home care sectors at first.

Frugalpac, meanwhile, recently opened a 11,000 square foot Frugal Bottle factory in Ipswich. But it believes it can create a better manufacturing model which ticks more bottles on sustainability: selling its Frugalpac Assembly Machines to companies locally. Each machine can produce 2.5m paper bottles a year.

KinsBrae Packaging in Canada bought the first machine to serve the Canadian and North American drinks markets and became operational in January 2024. And in the US, a second Frugal Bottle Assembly Machine will start producing paper bottles at Monterey Wine Company in Q4 2024. Frugalpac have received a letter of intent to sell a machine to Australia to Mother of Pearl Vodka. And the company has received enquiries from more than 100 more brands in the assembly machines.

Establishing local Frugal Bottle Production Hubs can cut carbon emissions even further by reduced transportation and using locally-sourced materials, says Waugh.

“Every printer, packaging firm and co-packer has the chance to join our paper bottle revolution, making more sustainable packaging and generating significant revenue and profit”, said Waugh.