India's new mandate on plastic packaging is shaking things up for beverage giants like Coca-Cola and PepsiCo. As of April 1, 2025, these companies must use PET bottles containing at least 30% recycled plastic—steadily increasing this proportion by 10% every year until hitting 60% by fiscal year 2028-29. The aim? A sustainable system where plastic bottles are fully recycled into new ones.
While the move promises environmental benefits like reduced plastic pollution, it comes with challenges. Food-grade recycled PET is scarce, with only five authorized facilities capable of meeting just 15% of average demand. PET bottles, representing about 70% of India's beverage packaging, are prized for their convenience and cost-effectiveness over glass and cans. The transition may lead to higher consumer prices and pose logistical hurdles, but it could spur innovation in eco-friendly alternatives like plant-based or biodegradable packaging.
The timing has sparked concerns within the industry, as the summer season approaches with insufficient production capacity to meet demand. Some companies hint at potential legal action to seek deadline extensions, emphasizing the need for years to scale up operations. While the mandate aligns with India's vision of a greener economy, achieving this goal requires overcoming substantial obstacles.
