urbanbuzz / Shutterstock.com Potato Chip & Snack Bags Put in Garbage See Alternatives 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. Late July Snacks Recycling Program You can send in Late July Snacks packaging to the Late July Snacks Recycling Program, which is a free recycling program through TerraCycle. Find out how to mail in these snack bags.