Why Businesses in India are Making the Shift to Compostable Packaging

When plastic was initially invented in 1907, it was considered one of the greatest inventions made by man. The new invention was received with optimism and excitement, as it made versatile materials available at cheaper prices. But as the product became cheaper and available in larger numbers, the usability of plastic became more common, regular, and irreplaceable.

The lack of research about the recycling of plastic and the lenient framework around the commodity led to irresponsible disposal and improper plastic waste management. This has created an environmental concern on a global level, forcing us to take a call for plastic alternatives. Such alternatives become crucial for developing nations like India to attain sustainable economic development.  This article will highlight the landscape of biodegradable packaging and the challenges the industry is facing at present in India.

The Potential Push Toward Biodegradable Packaging

At present, we see plastic used as a key element in many industries such as construction, textiles, consumer goods, electronics, and our day-to-day requirements at home.  India alone produces 25,000 tonnes of plastic in a single day. Among these, 40 percent of the plastic is used in the packaging industry, making it extremely dependent on plastic at large. However, the plastics utilized in the packaging are meant for single use. The covalent bonds present in plastic make the process of decomposition impossible, ending up in a landfill, in water bodies, or on fertile land. Non-biodegradable plastic can affect the quality of soil, ecosystem, marine life, and biodiversity, leading to more pollution.

As India stands in third place in producing plastic waste up to 9.3 million tonnes annually, due to poor waste management infrastructure and inadequate legal compliance around plastic. The rising concern for biodegradable packing has become a priority at this time. Due to a lack of research and innovation in India, the matter of biodegradable packaging is close to none. Multinational companies and government organizations' futile initiatives have rendered more advantages for the mass consumption of plastic, making this issue an alarming threat to the Indian ecosystem.

But in recent years, with few organizations and individual efforts, a shift in the narrative can be witnessed. Few companies in India have started producing biodegradable packaging. However, due to lacking support, this sustainable initiative has been hampered lately.

Hurdles in the Production Process

The production of plastic is cheaper and easier compared to the production of biodegradable packaging. In India, there is a lack of legal, economic, and scientific support for this industry.  The packaging industry's dependency on plastic can be minimized only with a larger production of biodegradable packages. Raw materials for this industry are primarily dependent on the primary sectors. There is a shortage of these raw materials in the market, making the industry dependent on imports. The increased cost of raw materials does make the production of biodegradable packaging more difficult.

Even when the raw materials are available, the price parity between the raw materials for plastic and green packaging is vast. Low-density polyethylene (LDPE) is easily available in the market at a cheaper price. Airline and oil companies from India provide the LLDP at a much cheaper rate of Rs 60 to 70. This encourages plastic production more as manufacturers would rather invest 7-8 lakh on 10,000 kg of plastic rather than on biodegradable packaging, which would cost 12 lakhs to make 10,000 Kg. With a 60-70 percent difference in the raw materials pricing, manufacturers would consider the point of making a profit and opt for plastic.

Even with all of these limitations on the industry, the government certification process makes it even more complicated with its time-consuming method. To administer the quality compliance of the industry the government has set strict laws under the Centre Pollution Control Board. The board administers two tests, each for 3 months. Only when a company succeeds in passing each of these tests can it get the certificate for manufacturing. Due to the time-consuming process and the rigidity of the board, only 140 companies have been certified among 500 applied companies.

The Current Scenario of the Biodegradable Packaging Industry

The Indian government has supported this green culture by hoarding the ban on single-use plastics, which has increased the demand for biodegradable bags. Due to this increased demand, most of the metropolitan cities have certified manufacturing companies for biodegradable packaging. However, this manufacturing has not yet been extended to remote and rural areas. Adding to this, the shortage of raw materials has limited production. Irrespective of this, the production of ecological packaging has added more to sustainability.

However, a strict certification process and a shortage of raw materials have made the process of production more strenuous. The lack of manufacturers has led to duplication of biodegradable packaging, leading to more environmental disruption. Many companies have been manufacturing bioplastics like polyethylene, resulting in more pollution.

Even though there is a law for regulation in production, the government’s authority over the already set framework and absence of initiative has severed a blow to the industry.

Measures to Strengthen the Industry’s Performance

Availability of the raw materials, especially with the market being dependent on insourcing rather than on importing, can be a huge game-changer for the industry. This problem can be solved with major airlines and oil companies taking the initiative to support the sourcing of raw materials for the industry, rather than supporting plastic. With these industries halting their production of plastic, there can be more demand for ecological packaging.

The government has already taken the initiative to create a sustainable environment by supporting biodegradable packaging. But the lack of supporting the ordinance has been apparent. Most of the namesake biodegradable packaging companies are producing oxo-biodegradable products, which are more detrimental to nature. The government has to take action against such companies. Thus helping more authentic companies to flourish. Further, the government ban should be expanded to complete plastic products, rather than limited to single-use plastics. This can support more utilization of biodegradable alternatives.

The Future Outlook for Green Packaging Solutions

At present, due to eco-awareness, many initiatives are being done in the field of compostable alternatives. Few companies have been working on research and innovation for developing ecological packaging.  The present industry is dominated by plastic at large, with 80 percent being manufactured from non-biodegradable material and only 20 percent being manufactured with degradable elements. Recently, many industries from automobiles have taken the initiative in utilizing green packaging. Few car companies have aced their seat manufacturing by employing ecological packaging.  Initiatives taken by the government have also yielded positive changes in the field. Therefore, there will be a surge in the usage of the compostable manufacturing field by up to 80 percent, making it the dominant player in the field. Hence, this can soon replace plastics in many sectors, including food, automobiles, and manufacturing.

About the Author: Naveen is a seasoned leader, known for his expertise in sustainable product development. Naveen combines green manufacturing with practical design to meet environmental goals and regulatory standards. His strategic vision supports different industries in adopting low-impact packaging while building a scalable, future-ready business rooted in circular economy principles.