urbanbuzz / Shutterstock.com Potato Chip & Snack Bags Alternative ways to recycle Landfill urbanbuzz / Shutterstock.com Snack Bags Are Recycling Contaminants The shiny lining in chip bags is often aluminum or a special mixed plastic. Since recycling plants cannot separate the plastic outer layer from the aluminum inner layer, these mixed-material bags cannot be recycled. Alternative Ways to Recycle TerraCycle Snack Bag Recycling Program Collect and send your snack bags for free Snack Bag Recycling Program, a free recycling and fundraising program that accepts any size of snack bag.