The Aakhya Weekly #125 | Unboxing the End of Plastic Packaging
In Focus: Can We Package a Solution To Plastic?
by Yashvika Malhan
Delegates from nearly 170 countries recently gathered in Busan, South Korea, as part of ongoing efforts to confront the global plastic pollution crisis. However, after a week of intense negotiations, the talks ended without achieving the desired outcomes. Despite years of worldwide awareness and repeated attempts at regulation, the divide between nations calling for stringent production cuts and those resisting such measures remains insurmountable. With the next round of discussions set for next year under the tentative label of INC-5.2, the clock continues to tick on a problem too urgent to be delayed further.
A Plastic-Heavy Reality
India is a major contributor to the global plastic waste crisis, generating more than 94 lakh tonnes of plastic annually. While around 60% of this plastic is recycled, a substantial 38 lakh tonnes find their way into landfills, exacerbating pollution levels. Plastic packaging makes up nearly 59% of the country’s overall plastic consumption, with industries like FMCG, food and beverage, and e-commerce being the primary drivers. Its widespread use is attributed to its effectiveness in preserving food, preventing spoilage, and lowering transportation costs, thanks to its lightweight and durable nature.
However, with the rapid growth of e-commerce and consumption, there is a sharp increase in plastic packaging waste. In 2021 alone, plastic waste from online shopping surged by 73%. Given how deeply embedded plastic packaging is in modern life, an outright elimination is neither practical nor realistic. A major shift toward sustainable alternatives is necessary to mitigate the environmental toll of plastic packaging.
India Takes on Plastic
In response to the growing crisis, the Indian government has already taken significant steps. Since July 2022, India has banned the production, import, sale, and use of 21 single-use plastic (SUP) products, including straws, bags, and cups. Furthermore, the Ministry of Environment, Forests, and Climate Change (MoEFCC) has introduced the Plastic Waste Management Rules (PWMR) to phase out plastics with high environmental impact, aiming to curb pollution at the source. A key policy principle in this fight is the Extended Producer Responsibility (EPR), which holds manufacturers accountable for managing the waste from their products. EPR, initially introduced for e-waste in 2012 and expanded to plastic packaging in 2016, requires producers to take responsibility for recycling and waste management.
Yet, challenges remain. Enforcement of the SUP ban has been uneven, with many banned items still readily available in the market. A key challenge is integrating the informal sector, as achieving full traceability of plastic waste, as required by EPR, is difficult due to the sector's reliance on unrecorded cash transactions, which limits accountability. India is committed to reducing plastic waste at international forums like the Busan talks, however, the government has also emphasised its right to determine the best materials for the country’s needs without undue external pressure.
The Challenge of Change
The landscape of sustainable packaging is rapidly diversifying, offering innovative alternatives to traditional materials. Compostable options from natural resources like corn, sugarcane, and bamboo break down into nutrient-rich soil, reducing waste. Recyclable materials remain the most widely adopted eco-friendly choice, while paper, when responsibly sourced, continues to rank among the greenest packaging options. Emerging technologies such as bioplastics, including Polylactic Acid (PLA), and innovations like mushroom-based and edible packaging are also gaining traction. Plant-based plastics, water-soluble packaging, and recyclable flexible packaging contribute further to the shift toward sustainable solutions. According to IMARC Group, India's sustainable packaging industry is poised to grow at a compound annual growth rate (CAGR) of 7.24% between 2023 and 2028.
While there’s promising growth and a strong push from the government towards recyclability and alternatives, it's important to recognise that the transition comes with its challenges. While alternative materials are becoming more competitive, they remain 20% to 100% more expensive than traditional plastics. This cost disparity heavily influences the viability of products in India’s highly price-sensitive market. On top of that, these alternatives aren’t yet available in the quantities needed for widespread adoption by businesses or consumers. Many Indian startups working on plastic alternatives have reported a lack of government support for research and development, forcing them to rely on personal finances or revenue to fund their efforts. Access to formal financial instruments is also a struggle, with most startups either bootstrapping or still in their early investment stages. Even agricultural waste-based packaging, which could be a game changer given India’s massive farm output, faces hurdles like high water consumption and inefficient production processes, making it harder to scale up.
On its part, the private sector brands, as a major consumer of plastic packaging, have begun taking steps to address the environmental impact of packaging through their sustainability commitments. For instance, Amazon India uses 100% recycled content for its corrugated boxes and paper cushions, ensuring recyclability. Similarly, Nykaa has pledged to reduce virgin plastic usage to 20% by 2025 and has transitioned to using over 90% recycled paper for its packaging. These efforts show that the industry is waking up to the need for sustainable practices. But there’s still a long way to go. A big challenge lies in the gap between the ambitious goals of companies like these and the ability of packaging manufacturers to keep up. Until that gap is bridged, progress will remain slower than it needs to be.
India’s recycling and reuse sector is still quite unorganised, particularly in the case of flexible and multi-layered plastics. The country’s recycling and composting infrastructure is in its early stages, which makes it harder to build effective circular business models. Private companies must invest more in collection, recycling, and reuse mechanisms to help tackle this issue. Programs like buy-back schemes could motivate consumers to return used packaging while working with local governments and informal waste workers could boost recycling efforts. Government initiatives, like Mission LiFE, are also crucial in encouraging people to separate waste at the source and get more involved in recycling.
The Big Push We Need
Plastic packaging has been an essential part of industries for decades, but its time may soon be up. While the shift toward sustainable alternatives is gaining momentum, it’s clear that replacing plastic won’t happen overnight. The challenge lies in the complexity of manufacturing alternatives like bioplastics and recycled materials, which often struggle to compete with properties like durability and barrier properties of traditional plastics. The environmentally conscious Gen Z are making stronger demands for greener solutions, however, India’s market demands solutions that are cost-effective and scalable, in addition to being eco-friendly.
Unless we explore new-age strategies aiming for significant reductions in plastic use, visions of a future free from it seem distant. The alternative materials industry needs more investment and incentives to overcome the challenges presented by plastics.
Although global discussions on a plastic pollution treaty have stalled for this year, next year's talks present a fresh opportunity to move beyond the current impasse. A successful treaty will need to find common ground between the diverse needs and priorities of each nation. The upcoming talks could be the key to finally breaking the mold and addressing the plastic issue in a way that doesn't weigh down the planet.
Top Stories of the Week
eMaap: Weighing in on Fair Trade and Business Transparency
The Government of India is developing the National Legal Metrology Portal (eMaap) to integrate State Legal Metrology Departments into a unified national framework. Announced by the Department of Consumer Affairs, it seeks to streamline critical processes such as licensing, verification, enforcement, and compliance management. By establishing a centralised database, eMaap eliminates the need for stakeholders to register on multiple state portals, enhancing the ease of doing business and promoting transparency in trade practices.
The portal will simplify procedures for tasks like verification and stamping of weighing and measuring instruments, issuance of registration certificates, and resolution of appeals. By reducing compliance burdens and paperwork, in line with the Legal Metrology Act, 2009, and associated rules, it aims to foster a transparent and business-friendly environment. The breakthrough initiative is poised to drive manufacturing growth by improving efficiency, accountability, and regulatory clarity nationwide.
Rajya Sabha Approves Boilers Bill and Oilfields Amendment Bill, 2024
In this winter session of Parliament, the Rajya Sabha has approved two landmark bills aimed at modernising regulatory frameworks and promoting ease of doing business. The Boilers Bill, 2024, seeks to replace the outdated Boilers Act, 1923, enhancing safety standards and streamlining compliance for boiler operations. By decriminalising seven offences and simplifying provisions into six chapters, the legislation ensures a clearer regulatory structure, significantly benefiting the MSME sector.
In addition, the Oilfields (Regulation and Development) Amendment Bill, 2024, introduces measures to boost investor confidence in the oil and gas sector. The approved bill introduces provisions for international arbitration, extended lease periods, and a simplified approval process—reducing approvals from 37 to 18— shifting to a revenue-sharing model to enhance domestic production.
A Few Good Reads
Alex Travelli and Shayeza Walid argue that Bangladesh's economy was drained of resources before the collapse of the Hasina government.
GST is an effective tax to distribute among urban local bodies, as it makes every citizen a participant in welfare, suggests Dr. Vijay Kelkar.
Avinash Persaud proposes taxing fossil fuels and shipped goods to finance climate change funds.
Amit Kapoor, Pradeep Puri, and Shrey Tiwari explain why India’s absence from the RCEP is a disadvantage for Indian consumers and industry.
Dr. Surendra Ahirwar opines on how shipping reforms can build supply chain resilience.