Plastic packaging is the most widely used packaging format among fast-moving consumer goods (FMCG) companies, especially in food & beverage and home & personal care segments. In India, where mass consumers are attracted to an affordable and convenient consumption model, plastic was established as a preferred packaging medium because it is cost-effective, durable, and has barrier properties. But with the increasing deluge of plastic trash — and the risk it poses to the world’s oceans, rivers, and fish — pressure has intensified for brands to change how packaging is made, used, and disposed of.
India generates tonnes of plastic waste annually, and a significant chunk of this is generated by single-use FMCG packaging. And with consumers growing increasingly sensitive about the environment and more vocal about the need for sustainability, moving toward recycled plastic is no longer a choice but instead a strategic decision. As packaging is the most direct and visible aspect of consumer products, it now serves as one of the key elements of a brand’s nature-conscious dedication.
Why FMCG Brands Are Going Towards Recycled Plastics
Key trends that are influencing FMCG companies to use recycled materials in packaging include:
1. Increasing Concerns Among Consumers for Brands with a Sustainable Nature
Today’s purchasers, millennials and urban consumers in particular, are looking for brands with an eco-consciousness. The package itself is often the face and feel of sustainability for routine products.
2. Corporate Sustainability and ESG Commitments
Big FMCGs are multi-geography players and they are answerable to global sustainability wrappers. Targets on carbon emissions, waste, and circularity are encouraging businesses to incorporate recycled content across their range of packaging.
3. Long-Term Cost Benefits
While the upfront costs of shifting to recycled plastics may appear high, when considering the time spent on sourcing and qualifying materials, innovative companies see that long-term efficiency gains depend on securing reliable sources of recycled material.
4. Competitive Brand Advantage
By setting the pace for sustainability, brands differentiate themselves as innovators and ethical market players. This, in turn, generates reputational value, differentiation, and greater loyalty with conscientious consumers.
The Role Played by Extended Producer Responsibility (EPR)
The extended producer responsibility is a guiding concept that encourages manufacturers of products to consider the environmental impacts throughout their product life cycle.
EPR in India has been the major driver to push brands towards a circular packaging system. Under EPR mandates:
- FMCG firms need to take back and handle the waste they have created.
- Now, many of them are required to incorporate a specified percentage of recycled content into their packaging.
- It is compelling brands to do something meaningful and recyclers to work together with a credible supply chain.
- EPR has spurred digital tracking solutions that allow brands to ensure where their waste is being collected and recovered, as well as structured transparency in the plastic recycling ecosystem.
Understanding Recyclable vs Recycled Packaging
- Recyclable Packaging: Packaging that can be reused and does not end up in the trash.
- Recycled Packaging: Packaging made from recycled plastic.
PCR (Post-Consumer Recycled) resin is made from household or commercial discarded plastics, whereas PIR (Post-Industrial Recycled) materials are generated from manufacturing scrap.
Some of the most frequently used plastics in FMCG packaging are:
1. PET
- Beverage bottles, edible oil bottles.
- Widely recycled, including food-grade options.
2. HDPE
- Shampoo, detergent, and milk bottles.
- Recyclable and accepted in most waste systems.
3. PP
- Caps, tubs, trays.
- Technically recyclable, but with limited collection streams.
4. Multilayer Plastic
- Snack packets, pouches, sachets.
- It is the most difficult to recycle because of the mixed materials that comprise several layers.
The transition towards circular packaging depends on both design for recyclability and advanced plastic recycling infrastructure.
Recycled Plastics Innovations That Are Game-Changing for FMCG
These technological advances are being harnessed to produce recycled materials that are of a better quality, safer, and more efficient:
- Higher wash and decontamination for cleaner resin with fewer impurities.
- Immune to all odours. Keeps standard look and material feel.
- Chemical recycling allows the recovery of monomers from low-value mixed waste and is particularly applicable to multilayer plastic waste streams.
- Food-grade recycled plastic is making progress; however, safety regulatory approvals are extremely stringent.
These advancements are slowly narrowing the performance gap between recycled resin and virgin plastic.
How FMCG Companies are Using Recycled Packaging
FMCG companies, even in the Indian context, are already considering recycled plastics:
- There are also beverage brands that help create a demand-pulled circular economy by using rPET in bottle manufacturing, lessening the reliance on virgin resin.
- Shampoo, lotion, and cosmetic bottles from personal care brands are also turning to PCR-HDPE.
- Home care brands are moving to packaging in recycled plastic refill pouches and bulk formats.
These shifts are frequently enabled by collaborations with technology-enabled recyclers who can supply finished materials that brands feel comfortable using and trace back through the product’s chain of custody.
Challenges of Recycling Plastic Packaging
Although much progress has been made, several issues are still there:
1. High-Purity Recycled Resin in Short Supply
Quality relies mostly on sorting and waste stream recovery systems.
2. Uneven Networks for Collection of Waste
Rural areas have lower performance than urban ones, and this influences the supply volume.
3. Price Volatility vs Virgin Resin
Volatility in the market can delay the speed at which brands are adopted, perhaps temporarily.
4. Cosmetic and Brand Value
Recycled resin may vary in colour or texture, requiring clear communication to consumers.
The only way to break through these barriers is ecosystem collaboration.
The Future of the FMCG Packaging Industry in India
- Increased adoption of design-for-recyclability principles.
- Growing momentum behind mono-material packaging to enable recycling of plastics.
- Utilisation of digital tools, traceability solutions such as blockchain, material mapping based on QR codes, and waste pickup transparency.
- More collaborations among brands, recyclers, government agencies, and local systems.
These shifts are more than just a compliance initiative now; it is a strategic move that will define the future of manufacturing and consumption.
Final Words
FMCG brands are leading the way in defining India’s sustainability future. As plastic recycling advances, the winners are likely to be those brands that invest in recycled packaging materials and transparent supply chains.
One of India’s top circular economy and plastic recycling innovators, Banyan Nation, is showing that technological material recovery, traceability, and high-quality recycled resins can allow FMCG brands to move comfortably towards recycled packaging. Thus, Banyan Nation, as a leading plastic recycler, can be seen as the shared, scalable path to build a cleaner, more circular world.