The KitKat maker will earmark more than 1.5 billion francs to pay a premium for such plastic given that the supply is too limited, the Vevey, Switzerland-based company said Thursday.

Recyclers have tended to neglect that market because of the difficulties in making non-toxic packaging for food.

Nestlé also said it will set up a 250 million-franc venture capital fund to develop packaging technology.

The company said it will try to keep the plastic purchasing neutral on earnings by seeking efficiencies.

Food and beverage makers have increasingly come under pressure from consumers and environmental groups like Greenpeace for using too much plastic.

Nestlé has pledged to make all of its packaging recyclable or reusable by 2025.

Unilever aims to halve its use of newly made plastic by the same year and is testing refill stations for products like laundry detergent and shampoo.

“The environmental issue will remain a topic in the next few years, and companies will have to back up words with real investments,” said Patrik Schwendimann, an analyst at Zuercher Kantonalbank.

“The whole industry will face higher costs, with spending on green solutions a new factor to consider for margin targets. The positive return is that companies will look good to the public.”

Nestlé inaugurated a packaging research site near Lausanne in September to develop packaging that’s less harmful to the environment, such as fully biodegradable paper-based water bottles and refillable containers.

The Swiss company, like rivals PepsiCo Inc and Danone, is also experimenting with water dispensers in an attempt to shift to selling beverages without bottles.

Nestlé shares were little changed in Zurich. They have gained 25% over the past year.