vld, the challenge with coffee packaging, like potato chip and other bags that use composite materials such as paper, foil, and plastic, is getting the material separated for processing. Many recycling facilities simply don't have the ability to do this and either send the bags for incineration or to the landfill. Incineration, at least, captures the energy from burning and, if it done right, without release of toxins.
However, there are more options evolving. Here's our recent summary of the changes in recycling of composite packaging: https://earth911.com/business-policy/recycle-composite-packaging/