en.Wedoany.com Reported - The Center for the Circular Economy at Closed Loop Partners announced a new phase in the work of its Smalls Coalition to advance the recycling of small-format packaging. In collaboration with founding partner L'Oréal, supporting partners Kraft Heinz and CVS Health, and strategic advisor Circular Action Alliance, the coalition is launching a field testing program in California aimed at recovering small-format plastics that are too small to be captured by traditional recycling equipment and end up in landfills.
Closed Loop Partners noted that billions of small-format items are lost annually at recycling facilities because they cannot be effectively captured by conventional sorting systems. Georgia Sherwin, Senior Director of Strategic Initiatives and Partnerships at the Center for the Circular Economy, stated that from an economic perspective, this represents a significant missed value stream. These materials typically include rigid plastics such as polypropylene and polyethylene, as well as metals, in the form of bottle caps, lids, coffee capsules, pill bottles, and small cosmetic containers. They are not inherently low-value; many products have viable end markets, but due to their size and movement patterns in sorting equipment, they are disproportionately lost. She added that brands in the beauty, personal care, and food service industries selling small-format packaging in states with extended producer responsibility (EPR) laws, such as California, could face significant obstacles if their products do not meet regulatory recycling requirements.
With California set to implement its packaging EPR law, S.B. 54, on January 1, 2027, Closed Loop Partners stated that this program is a critical testing ground aimed at helping brands, recyclers, and end markets build a scalable roadmap to capture small-format rigid plastics before they are discarded.
This phase builds on four years of research, field testing, and market analysis. Last year, the Smalls Coalition released the report "Small Materials, Big Recycling Opportunity: Unlocking Hidden Value Streams," summarizing key insights from a New York recycling facility. Now, the coalition is bringing its framework to California. To field test recycling solutions, the Smalls Coalition is partnering with Potential Industries Inc., a recycling operator with over 50 years of experience, four regional satellite facilities in Southern California, and a large regional material recovery facility (MRF). The company also provides glass recycling services for millions of residents in Los Angeles, Long Beach, and other major cities. Sherwin noted that as California prepares for major policy changes in curbside recycling, Potential Industries brings practical operational experience.
Sherwin pointed out that this research does not rely on a single "cutting-edge" system but rather seeks to understand how small-format materials perform within existing infrastructure. Many MRFs struggle with items below a certain size threshold. Collaborating with an operator like Potential Industries allows for an assessment of which upgrades, operational adjustments, or supplementary technologies can yield measurable improvements. The Smalls Coalition aims to generate insights broadly applicable to the current fleet of MRFs. Whether the best investment point for capturing these items is at an MRF or a glass recycling plant is a question the field study will address, and one that previous research has explored. Sherwin stated that based on past analysis, implementing equipment at glass facilities could be a particularly cost-effective approach, as glass plants aggregate material volumes from multiple MRFs, though opportunities also exist at large MRFs or plastics recycling facilities. She further explained that deciding where to invest requires considering whether sufficient material volume exists, whether there is enough space for implementation, and whether the facility is willing to change its operations. Additionally, MRFs can support downstream small-format packaging capture by maintaining their glass crushers or trommel screens and removing lightweight materials like film and fiber before sending the glass stream to glass beneficiation.
Utilizing the Smalls Coalition's established methodology—including site due diligence, material characterization studies, equipment evaluation, financial modeling, recycling testing, and end-market engagement—the program aims to design a scalable recycling solution. The goal is to generate practical experience at one facility in California, providing a broader roadmap for small-format packaging recycling across the state and in other states advancing EPR. Sherwin stated that Circular Action Alliance serves as the program's strategic advisor, ensuring that field testing and data collection are integrated into scalable EPR policies and recycling system design. Jeff Meyers, Chief Strategy Officer at CAA, said the Smalls Coalition offers a critical opportunity to address complex system design challenges using practice-based, data-driven evidence, building consensus through joint testing and learning. These field-tested insights are valuable inputs for developing EPR programs grounded in real-world conditions and aimed at achieving measurable recycling outcomes.
The Smalls Coalition's work is organized around four key focus areas: developing a data-driven practical roadmap; enhancing recycling infrastructure to capture small-format packaging at the curb; ensuring recycled materials are usable in new products; and improving packaging design in collaboration with brands and retailers. Sherwin stated that the coalition aims to de-risk investment decisions by identifying which solutions work and where capital is most effective. She added that brand partners are currently supporting the research and testing phase to generate data. Future EPR programs are expected to play a significant role in funding recycling system upgrades, while private capital and industry-led investments will continue to be important. Strengthening end markets for small-format rigid plastics is key to this effort. The coalition takes a full value chain approach, focusing not only on solutions to improve sorting but also on methods to support reprocessing and end markets, making recycling more sustainable by creating "demand pull." Sherwin noted that if MRFs can reliably sell these materials, it would change the economics, making investments in material capture more attractive.
Marissa McGowan, Chief Sustainability Officer for L'Oréal North America, stated that the company, as a founding member, is motivated to continue its partnership with Closed Loop Partners. Advancing solutions for small-format packaging is both an environmental priority and a business necessity, helping to reduce supply chain risk, strengthen EPR readiness, and secure future material supply. Dan Domonoske, Vice President at Potential Industries, noted that Closed Loop Partners' approach, which includes end-market demand pull, is valuable because the system cannot be sustained without a consistently available end market purchasing materials at reasonable scrap prices. Together, they are studying how to improve sorting while simultaneously supporting reprocessing and end markets. For the company, this represents both a business opportunity and an important step toward building a more resilient recycling system.
The Smalls Coalition continues to collaborate with industry partners such as the Glass Packaging Institute, Pact Collective, and the Sustainable Packaging Coalition, and has joined the Glass Packaging Institute's Small Format Coalition to complement each other's efforts in California. Companies in the beauty, personal care, pharmacy, food service, retail, and beverage industries are invited to join the Smalls Coalition by contacting centerforthecirculareconomy@closedlooppartners.com.
Kate Daly, Managing Partner at Closed Loop Partners, stated that small-format packaging has long slipped through the cracks of the recycling system, not due to a lack of value, but because recycling requires system-wide coordination. When these materials end up in landfills, it represents both an environmental loss and a missed economic opportunity. Over the past four years, the Smalls Coalition has built a deep understanding of small-format packaging material flows and is now bringing stakeholders together in California to help build a system designed to generate long-term, tangible impact.
Next steps, Sherwin stated, once field testing is complete, Closed Loop Partners plans to launch the first-of-its-kind proof-of-concept project in California, enabling a curbside recycling pathway for small-format packaging at Potential Industries. The learnings will be translated into a scalable roadmap offering clear guidance on infrastructure investments, design changes, and end-market development opportunities, with the goal of achieving broader adoption in California and other states following similar policy pathways.
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