The product takes up more space in landfills than does paper and eventually will re-enter the environment when landfills are breached by water or mechanical forces. Foam recycling is a public relations stunt, promoted by the chemical industries that manufacture it. This is done in highly centralized, distant facilities using complex chemical processes and expends far more energy than is ever saved by recycling the material. There is a growing number of alternate containers and products available that are made with unbleached paper, a far more environmentally benign material that is made with recycled sustainable materials. Bleaching paper creates chemical pollutants and uses more energy.
UNbleached paper is as close to environmentally benign as can be achieved in a non-reusable product.
Recycled paper is an easily renewable resource. Paper dissolves and biodegrades in the environment. Paper products can be recycled at most people's doorstep where community recycling is in place. Before getting to the substantiation and technical details of the above statements, keep in mind that you may have to persuade people who know far less than you do about such things. It is important to use the appropriate motivators and level of language, depending on whom you are speaking with.