The Future of Eco-Packaging? Inside Nestlé & IBM’s AI Collab

Nestlé is joining forces with IBM to overhaul how packaging materials are found, tested and sourced—focusing on supply chains that are quicker, smarter and more sustainable.

The partnership aims to reduce waste and cost by using generative AI to discover new materials that meet strict performance demands, from food safety to durability.

Together, scientists from Nestlé’s research and development arm and IBM Research are using deep tech - high-level, complex technologies - to shift packaging decisions away from trial and error and towards precision discovery.

It all centres on a new AI tool designed to help Nestlé accelerate its search for high-barrier packaging that performs well under pressure but is still recyclable and cost effective.

IBM’s Alessandro Curioni, Vice President of Research for Europe and Africa, says: “We do believe that generative AI will continue to disrupt scientific discovery, impacting the core business of all knowledge-based industries, allowing critical differentiation and sustainable growth.”

A scientific approach 

Behind the scenes, researchers are building a database of packaging materials by pulling from both public information and Nestlé’s own internal data.

From there, IBM is training a “chemical language model”, a type of AI that understands molecular structures and learns how different features affect material behaviour.

This process is managed through a “regression transformer,” which looks at data points and identifies patterns to predict physical and chemical properties. The team can then test virtual packaging options before physically producing them.

By doing this, they reduce years of lab work into a much shorter digital phase, creating a faster route to more viable packaging solutions.

The AI model can recommend new packaging that keeps products safe from moisture, oxygen and temperature changes—all while considering recyclability and cost. This is crucial for Nestlé, which produces a vast range of food and drink, each with specific packaging needs.

Stefan Palzer, Nestlé Chief Technology Officer, explains: “This novel AI-powered language model, developed in collaboration with IBM Research, illustrates how Nestlé is leading the digital transformation within the food and beverage industry.

“In the future, such breakthrough technology could be used to optimise the development of more sustainable packaging solutions across product categories.”

AI tools are reshaping Nestlé’s supply chain

This partnership is just one part of a broader effort to digitise Nestlé’s operations. From recipe development to factory performance, AI and machine learning are changing how the company runs its global supply chain.

Nestlé’s recipe algorithms help product teams balance ingredients, nutrition, cost and environmental impact—an essential step in getting products to shelves efficiently and sustainably.

Meanwhile, the company uses digital models of its manufacturing processes to test changes and improve production without interrupting day-to-day output. These digital twins (virtual versions of real-world systems) help identify bottlenecks and test improvements before rolling them out across the supply chain.

It’s a shift towards a more agile and responsive supply system, where AI not only helps in design and research but also plays a direct role in manufacturing and distribution decisions.

Tech-first strategy

As part of its long-term plan, Nestlé has also opened a specialised research and development centre focused entirely on advanced technologies. This facility is designed to explore and test tools that could reshape the way Nestlé operates—from sensors and robotics to AI frameworks and virtual reality environments.

The goal is not only to make packaging better but to streamline processes across product development and logistics. This includes everything from early-stage product testing to scaling up manufacturing, all with a view to reducing waste and improving supply chain efficiency.

Nestlé also uses custom-built digital platforms to offer personalised nutrition advice to consumers—extending its data-led approach beyond logistics and into consumer wellbeing. The same tech-first mindset that helps identify packaging options is being applied across the company’s functions.

In all, this IBM and Nestlé collaboration is not only about packaging but about reshaping how supply chains function—speeding up discovery, cutting costs and using fewer raw materials.