The Hidden Cost of Convenience: Life Cycle Assessment and the True Cost of Single-Serve Coffee Capsules

This paper presents a comparative, cradle-to-grave Life Cycle Assessment (LCA) of Nestlé Nespresso's single-serve aluminum coffee capsules against a biodegradable alternative, scoped to the United States consumer market. Using the ISO 14040 framework and the GHG Protocol Product Life Cycle Accounting and Reporting Standard, the analysis evaluates three dimensions of impact: environmental (Global Warming Potential), financial (cost structure and unit margin), and socio-economic (Social Cost of Carbon and Human Toxicity Potential). The functional unit is 1,000 single-serve capsules providing 8 oz of coffee per capsule. Results indicate that transitioning to biodegradable capsules, deployed through a subscription-based reverse-logistics model, reduces GWP by approximately 25.4 kg CO₂e per functional unit, yielding an estimated annualized emissions reduction of 73,863 metric tonnes CO₂e in the U.S. market under the base scenario—equivalent to carbon sequestered by 489 acres of U.S. forest preserved from conversion to cropland (U.S. EPA, 2022). Human toxicity modeling reveals that aluminum capsule production generates carcinogenic exposure approximately 17 times higher than the biodegradable alternative. Financial analysis demonstrates favorable unit economics for the biodegradable transition. A scenario analysis across three end-of-life assumption sets bounds the uncertainty of results. The paper concludes with a phased implementation roadmap and a circular business model for pilot deployment.