India Biodegradable Packaging Market - Forecasts from 2023 to 2028

India Biodegradable Packaging Market is estimated to grow at a CAGR of 15.06% during the forecast period.

Growing awareness of plastic waste hazards and technological advancements has influenced various manufacturers in India to innovate environment-friendly packaging.

According to Union Environment Ministry, India produces more than 25,000 tons of plastic garbage daily, of which 60% is recycled. The remaining is burnt, part of it clogs, drains enter the ocean as microplastics, and some are disposed of in landfills. The city of Mumbai is taking action to reduce the usage of plastic boxes and containers for food delivery after outlawing single-use plastics. The Brihanmumbai Municipal Corporation (BMC) offered to use steel containers during a meeting with restaurant associations. The United Nations Development Programme estimates that India generates 15 million tonnes of plastic annually, of which only 25% is recycled.

The government and leading manufacturers are collaborating, leading to the growing demand for biodegradable packaging. For instance, In July 2021, The Defence Research and Development Organisation (DRDO) of India introduced items for ecologically friendly packaging that are made from natural, plant-based, food-grade ingredients that decompose quickly. The environmentally friendly packing bags that DRDO and Ecolastic introduced are available in water-soluble and water-resistant varieties. The bags are supposed to have no negative effects on the environment and can organically decompose in three months. In a recent development in February 2023, plastics commonly used in the packaging industry have been shown to bio-transform in under four months and return to nature in just 176 days, leaving no microplastics or toxins behind. This work was done with Indian plastic manufacturer Toppan Specialty Films (TSP) and sustainable plastic innovator Polymateria.

Government initiatives and various product launches are fuelling the biodegradable packaging market.

The desire for sustainable packaging has grown immensely due to increased knowledge of social concerns over waste, climate change, and carbon footprint reduction. These factors have led to various product innovations by leading manufacturers in India. For instance, in June 2022, global brewer Corona announced the introduction of a new six-pack in India that is entirely compostable and biodegradable and is created entirely of barley straw. This new circular container design underscores Corona's objective of defending and safeguarding the environment. The new six-pack from Corona, wholly constructed of barley straw, is in keeping with the World Environment Day theme of "Only One Earth," which centers on "Living Sustainably in Harmony with Nature."

Market Developments:

• In March 2023, with the help of ABB India - a leading manufacturer and supplier of pulp and paper machinery - Parason automated and increased the production of biodegradable packaging options. Through this partnership, Parason hopes to decrease the usage of single-use plastics and Styrofoam packaging usage among its clients, including those in the food service and hospitality sectors, travel, transportation, and industrial canteens.
• Beginning on July 1, 2022, India no longer permits the manufacture, importation, storage, distribution, sale, or use of any single-use plastic products that have been determined to have a high potential for littering and low usefulness.

The FSSAI has taken initiatives towards reducing plastic footprint in the F&B industry, wherein many food businesses in India have pledged to eliminate single-use plastic in the coming years, develop environmentally-friendly substitutes, and an effective plastic collection and recycling/distribution system. In addition to framing the Packaging Regulations that provide guidelines for businesses looking to verify that the packaging materials and processes manufacturers use are safe for food. Several awareness-raising and collecting campaigns were held following the Swachhata Hi Seva Campaign. These are a few key elements that made it possible for beverage firms to reaffirm their dedication to sustainability. Reusing the drink's packaging can promote more product recycling, a plastic-free environment, and a reduction in carbon impact.

As consumers become more environmentally conscious, there is a growing demand for packaging solutions that are eco-friendly and sustainable. Paper-based packaging, which is renewable, biodegradable, and recyclable packaging is a popular choice among environmentally conscious consumers. Moreover, plastic waste has become a major environmental issue, and many countries, including India, are implementing measures to reduce plastic usage. Paper-based biodegradable packaging offers a sustainable alternative to traditional plastic packaging.

India has a large forestry industry and produces a significant amount of wood pulp, a key raw material for paper-based packaging. According to the Indian Pulp and Paper Technical Association, India's paper industry has grown from 0.7 million tonnes in 1950 to over 22 million tonnes in 2021, making it the fastest-growing paper market in the world.

Moreover, the Indian government has taken steps to promote the use of eco-friendly packaging solutions. For instance, it notified the Plastic Waste Management Amendment Rules, 2021, which prohibited the manufacture, import, stocking, distribution, sale, and use of single-use plastics (SUPs), intended to phase out the single-use Plastic Carry Bags of thickness less than 120 microns.

Market Segmentation:

By Material

• Plastic
• Paper

By Application

• Bottles
• Boxes & Cartons
• Films
• Others

By End-User Industry

• Food & Beverage
• Pharmaceuticals
• Cosmetics & Personal Care
• Others

By Region

• North India
• Delhi
• Uttar Pradesh
• Others
• South India
• Tamil Nadu
• Karnataka
• Others
• West India
• Maharashtra
• Gujarat
• Others
• East India
• West Bengal
• Odisha
• Others