Why Sustainable Packaging Sector holds Great Promise

Amidst a call for a ban on single-use plastics to pack food and agri products, the sustainable packaging sector is witnessing acceptance among many. Various industry stakeholders, startups and academia are conducting various research activities to launch various sustainable packaging products that are not only environment friendly but also good for health. Consumer demand, enacting strict regulatory actions, corporate commitments etc can help to standardise sustainable packaging in the long run.

We eat for 10 minutes in a plastic container…
…But that container stays for generations.

The food and agri-packaging industry is on the move. Changing consumer preferences, and investments in food and processing and packaging technologies are fuelling the growth of the sector.

According to Mordor Intelligence, the Indian food and beverage packaging market is projected to reach $38.27 billion in 2025 and is expected to grow to $52.49 billion by 2030 at a CAGR of 6.52 per cent. So far we have seen the plastic packaging market dominating the packaging market.

With uncontrollable plastic pollution that is becoming a threat to the planet, sustainable packaging is becoming the new norm. Consumer demand and concern towards the environment are making many focus on the concept of sustainable packaging. Also, regulatory compliance, eco-friendly solutions etc. are playing a huge role towards accepting sustainable packaging. It can be mentioned that the Indian eco-friendly packaging market is valued at over Rs 25,000 crore as of 2025, with a projected CAGR of 7–8 per cent through 2030.

Recently Kerala High Court expressed serious concerns over the widespread use of plastic containers for food delivery, highlighting the risk of microplastic ingestion and its potential link to health issues. The court raised concerns about the growing danger of microplastic ingestion, especially when hot food is packed in plastic containers, raising significant health and safety questions.

Shift towards alternatives
The recently held international roundtable organised by the United Nations Industrial Development Organisation (UNIDO) in Bangkok, Thailand, discussed and showcased various sustainable packaging initiatives including rapid adoption of active and intelligent packaging in dairy and perishables, eco-innovations using banana fibre, areca leaf and sugarcane bagasse, emerging green-tech packaging startups etc.

A position paper authored jointly by UNIDO, WPO, and Wageningen University on ‘Navigating the Food Loss and Waste Paradox: Balancing Food Loss Reduction with Save Food Packaging’ was released. The paper provides strategic pathways for nations to innovate, implement, and scale sustainable packaging interventions while mitigating food waste across the value chain, representing few case studies.

Hyderabad-based global packaging expert Chakravarthi AVPS, CMD, Ecobliss India and Global Ambassador of the World Packaging Organisation (WPO) calls for a shift in the perception of packaging—from an avoidable expense to a critical tool in reducing food loss. He goes on to add, “India’s food waste problem has a packaging fix. India’s packaging industry is evolving rapidly and holds immense potential to lead sustainable transformation across Asia.”

Union Minister of State for Health and Family Welfare, Prataprao Ganpatrao Jadhav, during the National Stakeholder Consultation on Sustainable Packaging for Food Business: Emerging Global Trends and Regulatory Framework organised by the Food Safety and Standards Authority of India (FSSAI) announced that the guidelines for the use of rPET in packaging.

Jadhav opines, “Shifting towards sustainable methods of packaging is the need of the hour.” He stressed that the usage of plastic is a growing concern globally, as it stays undecomposed in the environmentfor years having detrimental onsequences. “What we need today is a shift towards alternatives that are sustainable, recyclable, and biodegradable.”

Innovations in packaging
Various companies, startups etc. have come ahead to manufacture sustainable packaging both for the food and the agri sector. Paper and paperboard, bioplastics, metal, glass, bamboo, sugarcane bagasse, cornstarch etc. are used for manufacturing packages that are sustainable and are some of the main raw materials.

Let us talk about a few of the innovations happening in this space. Polylactic acid (PLA), a bio-based, compostable
material emits less CO2 over its lifecycle compared to fossil-based plastics. This offers an environmentally friendly alternative. PLA brand Balrampur Bioyug, by Balrampur Chini Mills’ upcoming PLA plant adjacent to the existing sugar factory in Kumbhi, Uttar Pradesh, is going to be India’s first industrial-scale biopolymer plant. It will be powered by 100 per cent renewable energy for its entire production process, and also the first plant location where sugarcane is transformed into PLA in a
single, integrated site.

With an annual capacity of 80,000 tonnes, Balrampur Bioyug will produce 100 per cent bio-based, industrially compostable PLA—offering a credible and scalable solution to the global plastic crisis. PLA has themechanical strength and durability needed for a wide range of uses while being far more sustainable. It is ideally suited to replace banned single-use plastic items
such as straws, disposable cutlery, trays, bottles, and curd cups—without compromising on performance or safety.

Bengaluru-based Bambrew focuses on the development of a material platform called Biophil, which offers a suite of proprietary biodegradable and compostable material designed specifically for sustainable packaging in the food and agriculture space. Biophil substrates are compatible with extrusion coating, lamination, and heat sealing, making them ideal for replacing traditional plastic in dry food packaging, pouches, and fresh produce bags. Unilever, DS group, Vegrow, Fasal etc. are their major clients.

Talking about the growth of the sector, Kunal Prasad, Co-Founder, Bambrew mentions, “We believe the sustainable packaging sector is set to grow rapidly in the coming years. Regulatory support, rising environmental awareness, brand commitments toward ESG goals, and India’s broader vision of achieving net zero, are collectively driving demand. Furthermore, in the agri and F&B sectors, there is an increasing awareness of the irreparable harms caused by plastic and recycled plastic packaging, which is contributing to the increased customer insistence on better and safer alternatives in this space. The cost is at parity, offering brands with additional incentive to switch.”

Bambrew aims to launch BioShield, a high-barrier, home-compostable laminate film that can replace aluminium foil and multi-layer HDPE structures in food packaging.

Mumbai-based Smaart Eats’ rice straws are biodegradable, food-grade, and made from rice and tapioca. The company is gearing up to introduce more eco-friendly packaging solutions tailored for the hospitality sector. Some of the major clients are Zepto Cafe, Social, The Bar Stock Exchange (TBSE), Yazu, Burma Burma, Torii, Smoke House Deli, Opa, Toit, Café Delhi
Heights, Veronica, O Pedro, Toscano, Glocal Junction, Mainland China, Prithvi Cafe, Hoppipola, Sigree Global Grill, Subko Coffee, Episode One, Natural Ice Creams, Bounce, Mocha, Yoko Sizzlers, Boojee Cafe, Easy Boba — and prestigious hotel chains like TAJ Group, Accor Group, Marriott Group, The Leela, and The Fern Group.

Vishal Laddha, Partner, Co-Founder and CEO, Smaart Eats opines, “The future of sustainable packaging isn’t optional — it’s inevitable. We’re moving towards a world where packaging must be planet-friendly by default. With rising awareness, policy shifts, and consumer demand, the sector is set for exponential growth. At Smaart Eats, we believe India has the potential to lead this transformation through innovation and scale. It’s not just about replacing plastic — it’s about reimagining packaging altogether.”

Another Mumbai-based company, Vista Packaging is currently working with major retailers, growers and brand owners the world over to supply solutions for both sustainable packaging and shelf-life extension films thereby reducing wastage. They have introduced the Vital Brand of Shelf Life Extension films. By combining product physiology, laser perforation and polymer
engineering Vista has developed a solution that ensures extended shelf life for fruits and vegetables. The company has also introduced recycled content in laminates and pouches.

Qadir Rangwala, Director, Vista Packaging opines, “With the current trends and consumer preference towards sustainable packaging options, the sector is poised for a great deal of growth. The companies that innovate and supply cost-effective practical solutions while maintaining the functionality of the product will be the ones that will come out on top. For the completion of the circular economy loop, the integration of recycled raw materials is essential. The use of recycled materials will reduce and replace virgin material in end applications thus reducing the use of fossil fuels and ultimately reducing carbon emissions. We have also introduced the addition of some recycled content in our laminates and pouches in this range.”

We have yet another company from Mumbai Fibmold Packaging that collaborates with leading QSR chains, cloud kitchens, and premium beverage brands. The company is actively expanding into the non-food sector—developing customised moulded fibre packaging solutions for pharma, electronics, cosmetics, and FMCG. Some of the major clients the company is catering to are Subway, California Burrito, Dunkin’ Donuts, Yum Yum Cha, DS Group, Burger King, Third Wave Coffee etc.

Nitin Aggarwal, Regional Sales Head North & East, Fibmold Packaging believes that the sustainable packaging sector is at a tipping point of exponential growth. With increasing regulatory pressure on single-use plastics, heightened consumer awareness, and global climate commitments, brands are actively seeking compostable and recyclable solutions.

Aggarwal highlights, “In the next five to seven years, sustainable packaging will no longer be a premium niche—it will become the industry standard. India, with its growing consumption base and evolving compliance mandates, presents a major opportunity to lead in scalable, made-in-India sustainable solutions.”

UFlex, a multinational flexible packaging and solutions company, has announced the launch of its latest innovation, an FSSAI-compliant single-pellet solution for the use of recycled PET in food and beverage packaging. This innovative product combines recycled PET with virgin PET in a single, high-purity pellet that exhibits both mechanical and thermal stability. The packages produced from this resin are of high clarity, strength, and lower acetaldehyde content. Importantly, this resin solution is compatible with existing PET manufacturing lines, enabling a seamless transition to rPET without the need for new infrastructure investment. UFlex has also received USFDA approval for its technology and capacity to recycle all three materials: recycled polyethylene terephthalate (rPET), recycled polyethylene (rPE), and recycled polypropylene (rPP) for
use in food packaging.

Says, Ashish Saxena, Joint President – Packaging Films Business, UFlex, “Since our inception, we have always been committed to pioneering sustainable packaging solutions. We are pleased to offer our latest innovation—the single-pellet solution, which will be a game-changer for food and beverage brands striving to meet EPR compliance under the new FSSAI guidelines. Our recent announcement of Rs 317 crore investment in two new recycling plants in Noida is a strong reaffirmation of our commitment to India’s plastic waste management vision. As regulations become more robust, we aim to set the benchmark for responsible production and scalable, sustainable packaging solutions in India and beyond.”

Role of academics
Academics are taking up various research activities to come up with innovations in sustainable packaging.

Prof Preetam Sarkar, Associate Professor, Department of Food Process Engineering, National Institute of Technology Rourkela, has made significant contributions to the field of sustainable food packaging, focusing on the development of eco-friendly, biodegradable, and intelligent packaging materials aimed at reducing environmental impact and enhancing food safety. Prof Sarkar’s research group has pioneered the creation of pH-sensitive intelligent films made from Kodo millet starch, gum tragacanth, and beetroot peel extract, which can detect seafood freshness by changing colour in response to volatile amines released during spoilage. This innovation offers a natural, biodegradable solution that not only reduces reliance on synthetic plastics but also provides real-time freshness monitoring for the food industry. Prof. Sarkar’s team has explored the use of agricultural and fruit seed wastes, such as jackfruit, jamun, and litchi seeds, to produce biodegradable films and edible coatings.

Prof Sarkar says, “The sustainable packaging sector is expected to experience significant and steady growth in the long run, driven by tightening environmental regulations, rising consumer awareness, and rapid technological advancements. Governments across the globe are introducing stricter policies, such as a ban on plastics and extended producer responsibility laws, pushing industries to adopt eco-friendly alternatives. At the same time, consumers—especially younger
generations—are increasingly favouring brands that prioritise sustainability, making green packaging a key market differentiator. Innovations in materials like bioplastics, nanocellulose, edible coatings, and intelligent packaging are making sustainable solutions more functional and cost-effective, while industries are investing heavily in R&D and production scale-up.”

Currently, Prof Sarkar and his team are exploring a diverse range of underutilised agricultural resources, including tamarind seeds, jackfruit seeds, jamun seeds, litchi seeds, pumpkin seeds, and others, aiming to convert these by-products into sustainable solutions that contribute to environmental conservation and the circular bioeconomy.

A mention can be made of the Department of Food Science and Nutrition, Avinashilingam Institute for HomeScience and Higher Education for Women, Coimbatore. The institute has undertaken DST-funded research and is currently focusing on functional enrichment of the developed films on the green synthesis of silver and zinc nanoparticles for use as cross-linkers to improve the properties of biodegradable edible films. The institute is currently working on a multi-mold tableware-making machine and a corrugated box-making machine to support scalable eco-packaging production. Efforts are underway to commercialise edible and eco-friendly films and cutlery.

Projects in the pipeline include oral dissolving film, effervescence tablet, soup pouch, edible tomato sheets etc. The institute has received Rs 43 lakh for DST SERB Project, a grant of Rs 63 lakh by DST-TDP and a grant of Rs 4 lakh from AICTE under the Tomato Grant Challenge.

The uniqueness of the innovation lies in replacing single use plastics from grass root level to airline catering, highly durable, nutritious, delicious and degradable cutlery and crockery, suitable for paediatric to geriatric, degrades in natural environment, a footnote towards attaining nutritional quality and nutritional security, customising with different colour and flavour commensurate with consumer’s choice towards commercial application.

Says, Prof Pa Raajeswari, Professor, Department of Food Science and Nutrition, Avinashilingam Institute for HomeScience and Higher Education for Women, Coimbatore, “With increasing environmental regulations, consumer awareness, and industry demand for circular economy practices, the sustainable packaging sector is poised for exponential growth in the coming years. The centre has pioneered innovative solutions in the field of edible and eco-friendly packaging materials derived from food and agro waste. The main focus is not just to reduce environmental burden, but also to create materials that are functional, nutritionally beneficial, and aligned with circular economy principles.”

Challenges

Sustainable packaging providers are currently navigating a complex web of challenges. Cost competitiveness and functionality of sustainable alternatives when compared with the conventional plastic options. The industry also faces complex certification and regulatory pathways, particularly due to varying standards across different states. Many packaging converters possess limited technical knowledge regarding biodegradable materials, hindering their adoption and proper utilisation. Sustainable materials are still often more expensive than plastic, making adoption harder for cost-sensitive businesses.

Many buyers are unaware of industrial compostable certifications, proper disposal methods, or the environmental RoI. This apart, the lack of large-scale composting infrastructure and inconsistent regulations across states slow down real-world impact. Balancing high-quality customisation with eco-material limitations continues to be an innovation challenge.

Sustainable packaging providers today face several key challenges that hinder widespread adoption and scalability. One of the most significant obstacles is the higher production cost of sustainable materials compared to conventional plastics, making it difficult for manufacturers to compete on price, especially in cost-sensitive markets. Additionally, there is often a lack of adequate infrastructure for the collection, segregation, recycling, or composting of eco-friendly packaging, which reduces the effectiveness of even the most well- designed solutions. Inconsistent regulatory frameworks, balancing functionality with sustainability, consumer confusion and supply chain limitations need coordinated efforts between innovators, policymakers, industries, and consumers to overcome the challenges.

A promising future
The sustainable packaging industry is going to revolutionise the concept of eco-friendly packaging. Consumer awareness and an urge by industry players to strictly adopt sustainable packaging can be a game changer in the long run. Letting go of plastic-packed food items can bring a sea of change to the environment. Various government initiatives, the role of academics and a strong determination from various stakeholders can curb various forms of plastic pollution.

Sanjiv Das
sanjiv.das@mmactiv.com