India's new mandate requiring beverage giants to use recycled plastic in their bottles marks a significant shift towards environmental sustainability.
In an effort to combat plastic pollution, India now compels companies like Coca-Cola and PepsiCo to include recycled plastic in their PET bottles, escalating annually until it constitutes 60% by 2028-29, the Cool Down reported.
The regulation, effective from April 1, 2025, mandates that PET bottles used by beverage companies contain at least 30% recycled plastic. This initiative is part of a broader goal to foster a circular economy, ensuring that plastic materials are continuously reused.
This requirement is set to increase by 10% each year, aiming for a 60% threshold by the end of fiscal 2028-29. The gradual increase intends to give companies time to adjust their production processes to comply with the new standards.
However, embracing these changes comes with its challenges. Companies like Coca-Cola and PepsiCo may face difficulties due to the current limited availability of food-grade recycled PET (rPET).
The Food Safety and Standards Authority has approved only five plants in India to produce food-grade recycled PET. Notably, these plants fulfill just 15% of the average demand, which may force beverage companies to make significant supply chain adjustments.
As regulators implement these new measures, companies expect production costs to rise by an estimated 30%. They may pass these additional expenses on to consumers, potentially causing a temporary increase in beverage prices.
Despite these challenges, the long-term outlook of the policy is optimistic, aiming to significantly reduce plastic pollution in public spaces and water bodies.
The stringent new policy could also spur innovation within the beverage industry. Companies might explore alternative packaging solutions, like biodegradable or plant-based materials, to meet sustainability goals and comply with government regulations.
PET bottles currently dominate about 70% of India's beverage packaging market, thanks to their convenience and cost-effectiveness compared to alternatives such as glass and cans.
The transition to increased rPET use serves not only to alleviate environmental concerns but also to gradually lessen the dependency on virgin plastics, which are significantly more harmful to ecosystems.
The rigorous timeline and ambitious goals of the new mandate have stirred up some opposition within the industry. Some beverage companies are considering legal actions to postpone these deadlines.
An executive from a leading beverage company highlighted the industry's predicaments, noting, "We may have to take legal recourse and take an anticipatory stay if the deadline is not extended. The timing is bad, ahead of peak summer. We are investing in capacity, but capacity increases are two to three years away."
This sentiment underscores the potential disruptions to beverage production, especially during high-demand periods, which could affect market stability and consumer prices.
The ambitious initiative by the Indian government aims to set a global example in combating plastic waste through regulatory measures. It seeks not only to transform the local market but to encourage a global shift towards more sustainable practices in the beverage industry.
As companies grapple with these new requirements, the successful implementation of this policy will depend heavily on the collaboration between industry stakeholders and regulatory bodies.
The transition towards using a higher proportion of recycled materials in beverage packaging is a crucial step towards sustainability. It reflects a growing recognition of the need for environmental conservation while acknowledging the challenges of adapting to new economic landscapes.
