Sustainable Packaging Solutions in India: Navigating the Transition to a Circular Economy

Packaging is one of India’s fastest-growing industries, contributing to technological advancements across various manufacturing sectors, including agriculture and fast-moving consumer goods (FMCG). The India Packaging Market size is estimated at USD 84.37 billion in 2024. It is expected to reach USD 142.56 billion by 2029, growing at a CAGR of 11.06% during the forecast period (2024-2029) (India Packaging Market Insights, n.d.-b). In 2019, India produced around 17 million tons of plastic, among them approximately 59% was used in packaging, of which only 15% was effectively recycled with the rest either incinerated or dumped in landfill (UNEP, 2021). The trend of plastic consumption in packaging in India is higher compared to the global average, accounting for approximately 59% of total consumption of 19.8 million tonnes in 2020. (Hossain et al., 2023).

The high usage of plastic in packaging is of great concern. Indian packaging industry consumes the majority of the nation’s plastic consumption, with 42% of total consumption used in flexible packaging and 17% used in rigid packaging. This adds up to 8.37 kg of plastic packaging consumption per capita. A circular economy for plastics aims to reduce wasteful usage of plastics, utilize renewable sources of production, reuse and recycle plastics within the economy without environmental leakage, and generate minimal waste. Over the past years, the concept of circular economy has gained consensus as a new perspective covering waste management, supply chains, and packaging as an important element for achieving circularity. Traditionally, the packaging industry operates on a linear model of design, production, consumption, and disposal, generating significant waste that poses environmental concerns. The shift to a circular system requires fundamental changes in packaging design to minimize waste and promote sustainability.

To achieve the circular economy goal, packaging waste reduction and material recovery suitability are critical. Strategies include minimizing packaging material, reusing packaging, utilizing biodegradable materials, and incorporating recycled materials into packaging design.

The circular economy principal banks upon the fact that plastic never becomes pollution. To create a circular economy, a three-pronged approach needs to be followed- Eliminating problematic plastic materials, innovating reusable and recyclable materials, and disposing of the items out of the environment. Building a circular economy requires a collaborative approach involving various stakeholders: packaging companies, government, non-profit groups, and informed consumers. This collective effort is crucial for keeping recyclable plastic packaging circulating within the economy, reducing plastic waste and pollution, and significantly lowering greenhouse gas emissions.

CHALLENGES FACED IN ADOPTING CIRCULAR PACKAGING
Transitioning towards circular packaging presents a multifaceted challenge, necessitating cohesive efforts across various departments within a company, changes in consumer mindsets, cultural shifts, and advancements in technology and infrastructure. To effectively address these challenges, it’s imperative to delve into them comprehensively and take proactive measures to overcome them. One significant hurdle lies in the lack of accessible, reliable, and comprehensive data. Companies often struggle to obtain the necessary information required for making informed decisions regarding sustainable packaging practices. Complete data sets are essential for establishing frameworks, standardized tools, and methodologies across the industry, thereby facilitating a streamlined approach to the adoption of circular packaging solutions. Another obstacle is the presence of competing priorities. Testing the reliability of materials produced for circular packaging can be challenging. There’s uncertainty regarding whether these materials will meet circular packaging standards, and reduce carbon footprints, and greenhouse emissions while also upholding safety standards and consumer health requirements. Balancing these diverse priorities requires careful consideration and possibly iterative testing and refinement processes. Moreover, attention must be given to the product’s lifespan and the packaging’s ability to maintain product integrity throughout its intended use. Packaging should contribute to prolonging the product’s shelf life and ensuring its quality and safety until consumption. Inadequate infrastructure poses yet another significant challenge. Waste management practices vary widely between countries and even within the same country across different municipalities. This results in inconsistencies and inefficiencies due to varying infrastructure and processes for handling packaging waste. Effective management of packaging materials throughout their lifecycle and beyond is crucial for realizing the circular economy’s potential. Without robust support for collection, processing, and conversion infrastructure, achieving a circular economy centered around reusable, recyclable, or biodegradable packaging solutions becomes unattainable.

MAJOR CONTRIBUTING INDUSTRIES WITH CASE STUDIES

INDIAN PHARMACEUTICAL INDUSTRY
The Indian Pharmaceutical Industry (IPI) plays an important role in India’s economy, ranking third globally by production volume and fifteenth by production value. Packaging plays a crucial role in the pharma industry, where its function extends beyond serving as a branding aid and providing barrier protection to products for the shelf-life period. In response to environmental concerns and the growing demand for pharmaceutical products, the industry is shifting towards sustainable packaging strategies. This shift involves embracing biodegradable materials like Polylactic Acid (PLA) and Polyhydroxyalkanoates (PHA), derived from plant-based sources, to replace traditional plastic or metal-based packaging. These materials decompose naturally over time, reducing environmental impact and waste accumulation. However, challenges remain in ensuring these materials adequately protect products and meet regulatory standards. The Meghmani Group exemplifies leadership in sustainable packaging solutions within India’s pharmaceutical industry, emphasizing innovation, sustainability, and customer satisfaction. With over 40 years of experience, the company’s diverse portfolio and commitment to technological advancements position it as a frontrunner in delivering superior quality, environmentally friendly products.

E-COMMERCE INDUSTRY
The rise of e-commerce in India has indeed transformed the shopping landscape, offering unparalleled convenience for consumers while posing new challenges for the packaging industry. Sustainability has emerged as a crucial consideration amidst growing environmental consciousness among both businesses and shoppers. In response to this shift, the Indian e-commerce sector has been actively embracing eco-friendly packaging solutions. Corrugated boxes have gained prominence for their durability and eco-friendly credentials, being crafted from recycled materials. Moreover, there’s a trend towards adopting compostable packaging materials like cornstarch-based packing peanuts and paper-based bubble wrap, which decompose naturally, lessening the burden on landfills. Empower India, a prominent think-tank, recently conducted a comprehensive study on the retail industry’s sustainability practices, with a particular focus on e-commerce giants operating in India. Among the key findings, Amazon emerged as a leader in sustainability efforts within the sector. Amazon has been at the forefront of sustainable packaging initiatives, with a commitment to reducing single-use plastic and embracing eco-friendly alternatives. Since 2020, Amazon has eliminated single-use plastic from its India network, replacing it with eco-friendly paper alternatives. This initiative has resulted in the avoidance of 97,222 metric tons of single-use plastic in 2021 alone. Amazon has reimagined traditional packaging design by actively embracing reusable packaging solutions. Collaborating with industry professionals, the company has developed durable, eco-friendly alternatives that can be used multiple times before being recycled. This shift challenges other market players to follow suit. The company has committed to incorporating sustainable materials in its packaging, including biodegradable, compostable, and recycled materials. Through collaboration with packaging experts and leveraging cutting-edge technology, Amazon is pioneering environmentally conscious materials, reducing the burden of non-biodegradable waste. Apart from this, Amazon aims to empower its vast customer base to participate actively in sustainable shopping practices. Plans for an educational campaign are underway, providing consumers with easy-to-understand information about eco-friendly packaging options. By empowering buyers with knowledge, Amazon envisions a shift in consumer behavior towards sustainable packaging choices.

➔FOOD AND BEVERAGE INDUSTRY
Packaging plays a crucial role in the food supply chain, yet there’s a significant lack of understanding and attention to implementing extended producer responsibility for packaging. The environmental impact of food packaging, particularly plastic, has garnered increased concern due to its contribution to waste and CO2 emissions. Nearly all plastic packaging is petroleum-derived and has persisted in the environment for centuries, with around half being single-use. While packaging serves to protect food from contaminants and maintain quality, its environmental consequences are significant. Various functions of food packaging, such as containment, preservation, and communication, dictate the choice of materials. The emergence of new concepts like active and intelligent packaging has facilitated improvements in the food supply chain, storage life, and consumer knowledge. Technological advancements allow for enhanced functionality in packaging, including real-time detection of food quality. However, embracing these changes requires shifts not only in technology but also in consumer behavior, regulations, cultural perceptions, infrastructure, and market dynamics. Re-usable fast food packaging: Burger King Takeaway food is big business — but the packaging for those meals poses a sustainability challenge. Global takeaway brand Burger King has unveiled a solution in the form of reusable packaging intended to reduce the amount of waste it generates. Customers in New York, Tokyo, and Portland, Oregon will soon be able to buy burgers and drinks in reusable packaging. The plan, one in place for next year, features a small deposit charged initially and then refunded when the customer returns with the boxes and cups, which are taken away for cleaning and processing via the zero-waste e-commerce system Loop.

GOVERNMENT POLICIES FOR SUSTAINABLE PACKAGING
The Indian government has implemented various policies and initiatives to promote sustainable packaging practices. For example, the Plastic Waste Management Rules 2016 mandate the use of compostable plastics and encourage the adoption of recyclable materials in packaging. Additionally, initiatives such as the Swachh Bharat Abhiyan (Clean India Mission) emphasize waste management and environmental sustainability, creating a favorable regulatory environment for sustainable packaging investments.

  1. Policy/Rule Description Plastic Waste Management Rules (PWM), 2016: Introduced by MoEFCC to reduce plastic waste and promote recycling. Mandates Extended Producer Responsibility (EPR) for producers, importers, and brand owners. Specific targets are set for waste collection, segregation, and recycling. States are required to achieve a minimum of 25% recycling of plastic waste by 2021.
  2. Plastic Waste Management (Amendment) Rules, 2018: Amended regulations for plastic packaging, including phasing out non-recyclable multi-layered plastic (MLP) packaging within two years. Promotes the use of recyclable alternatives.
  3. Single-Use Plastics (SUP) Ban: Various states and union territories in India implemented bans on single-use plastics (e.g., bags, cutlery, straws) to reduce plastic pollution. Maharashtra implemented a ban in June 2018.
  4. National Packaging Policy (NPP): Under consideration by the Indian government to address packaging waste issues and promote sustainable packaging practices. It aims to establish standards and promote recycling, and eco-friendly materials. EcoMark Certification Scheme Implemented by BIS to certify environmentally friendly products, including packaging materials. Products meeting specified criteria for environmental performance and sustainability are eligible.

ROLE OF CONSUMERS IN ADOPTION OF CIRCULAR PACKAGING
Consumers play a crucial role in the adoption of circular packaging practices. Their behaviors, preferences, and demands have a significant influence on the packaging choices made by companies and ultimately drive the transition toward more sustainable packaging solutions. Here are several key ways in which consumers impact the adoption of circular packaging:

  1. Demand for Sustainable Products: Consumers increasingly prioritize sustainability and environmental responsibility in their purchasing decisions. They actively seek out products packaged in materials that are recyclable, reusable, or biodegradable.
  2. Feedback and Consumer Awareness: Consumer feedback and awareness campaigns can raise awareness about the environmental impacts of packaging and the benefits of circular packaging solutions.
  3. Support for Recycling and Reuse Programs: Consumers play a vital role in recycling and reuse initiatives by properly sorting and disposing of packaging materials.
  4. Pressure on Brands and Retailers: Consumer activism and advocacy can put pressure on brands and retailers to prioritize sustainability and adopt circular packaging practices.
  5. Education and Awareness: Educating consumers about the importance of circular packaging and providing information about how they can make more sustainable choices empowers them to drive change.

 

CONCLUSION
India is increasingly moving towards sustainable packaging solutions to reduce the environmental impact. India is promoting circularity through waste management reforms and eco-friendly waste regulations. The future of sustainable packaging in India looks promising due to growing consumer awareness and regulatory support. Scaling up sustainable practices requires collaborative efforts across industries and government intervention and control. Embracing circular economy principles, leveraging AI, and aligning with supportive policies are key strategies for a greener future in Packaging.

Trisha Singhal
Economics Major
Miranda House, Delhi University
Ojaswini Rao Ayde
Economics Major
Miranda House, Delhi University
Yashasvi Aggarwal
Economics Major
Miranda House, Delhi University

REFERENCES
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