Sustainability Karma

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Despite environmental concerns, consumers make purchase decisions based on prices and convenience, not eco-friendliness: Ashok Jaipuria of Cosmo First

As sustainability increases due to growing environmental awareness, mono-material packaging films are finding favour with companies transitioning from traditional multi-layered plastic films.

Ashok Jaipuria is the Founder Chairman, & Managing Director of Cosmo First Limited, a Public Listed company.
Ashok Jaipuria- Chairman & Managing Director, Cosmo First Limited

During the past decade, the world has been phasing out single-use plastics (SUPs) for more sustainable alternatives, with India having banned SUPs in July 2022. As a result, the packaging industry has shifted to sustainable options with a low environmental impact. Herein, CPP (Cast Polypropylene) and BOPP (Biaxially-oriented Polypropylene) films have emerged as the most viable choices for sustainable solutions in varied segments. 

The Emergence of CPP and BOPP Films

Given the ongoing changes in people’s lifestyles and dietary habits, eco-friendly packaging solutions are gaining prominence. By 2031, the CPP market size is slated to touch approximately $78 million. CPP offers thin, transparent, flexible films with first-class clarity, moisture resistance and longer shelf life for products. Backed by its heating-sealing properties, this film is an excellent alternative for both conventional flexible packages and non-packaging uses. Moreover, CPP films are lightweight, energy efficient, recyclable and versatile, eliminating any need for excess secondary packaging. 

Similarly, BOPP is growing popular because of its durability, adaptability and sustainable elements. It is preferred especially in the food, personal care, pharmaceuticals and electronics segments. The food and beverage segment is one of the largest BOPP film consumers, with wide usage in snacks, frozen foods, confectionery packaging and more due to its moisture-resistant, high-clarity features. The e-commerce boom has also contributed to its growth since BOPP is ideal for shipments because of its toughness and protective properties, particularly for fast-moving consumer goods. 

India services several global markets for BOPP films as one of its largest producers and exporters. With 73,410 shipments, India is ranked ahead of China (45,214) and Vietnam (23,755) in BOPP exports. Several factors propel India’s formidable position in BOPP exports. These include its lower production costs versus other nations, domestic manufacturing capabilities to meet national and global demand and export-friendly policies such as ‘Make in India’ and the PLI (production-linked incentive) scheme that support manufacturers in scaling up production capacities while catering to key export markets. 

Advantages of Mono-material Packaging for Food 

As sustainability increases due to growing environmental awareness, mono-material packaging films are finding favour with companies transitioning from traditional multi-layered plastic films. Since they have simpler structures, mono-material packaging films are eco-friendly and easier to recycle. Innovations in film-processing technology and material science, manufacturers now make mono-material films with much better barrier, processing and printability properties. 

Driven by innovations, mono-material films are finding much wider applications, ensuring the market will grow steadily from $4.17 billion in 2024 to $6.26 billion by 2034, recording a CAGR of 4.20% in this period. The rise of mono-material films is a boon as it’s a potent answer to the problem of food waste since their augmented barrier properties and robust protection extend the shelf life of packaged food items. Thereby, it curbs food spoilage, contributing immensely to lower food waste. 

Against this backdrop, the domestic sustainable packaging market is anticipated to rise substantially in the period ahead. Valued at $3.5 billion in 2020, the market is projected to touch $11.1 billion by 2025, registering a CAGR of 26.7%. One of the primary reasons for this vibrant growth is the industry’s investments in R&D innovations for sustainable packaging solutions. This covers research to develop compostable packaging materials, biodegradable plastics and alternative solutions using sugarcane bagasse, corn starch, bioplastics and other renewable resources.  

Some Inherent Challenges 

Notwithstanding these benefits, there are some key challenges that the industry confronts. The first is the higher costs linked to sustainable packaging vis-à-vis traditional materials. On average, the cost differential between sustainable and conventional packaging is around 20 to 30%. This is a hurdle for wider usage among cost-conscious enterprises and consumers. 

The other hurdles are infrastructure limitations, consumer habits, lack of regulatory uniformity and supply chain complexities. To begin with, specific infrastructure is required to collect, segregate and recycle packaging waste, especially in rural and semi-urban regions. A CPCB (Central Pollution Control Board) report reveals that only around 60% of the country’s plastic waste is recycled due to the paucity of waste management infrastructure. 

Despite professed environmental concerns, consumer behaviour also holds challenges as people make purchase decisions based on prices and convenience, not eco-friendliness. Awareness campaigns are needed to encourage consumer acceptance of somewhat higher prices for sustainable packaging. 

The authorities must also introduce a comprehensive regulatory framework to promote sustainable packaging. Currently, there is considerable inconsistency and ambiguity in industry laws and practices that impact sustainable packaging. Uniform laws regarding labelling and sustainable packaging are imperative for faster growth of the industry. If the authorities address these issues at the earliest, it will help in advancing faster acceptance of sustainable packaging across industries, pan-India. 

Opportunities due to Regulatory Reforms

However, ongoing regulatory reforms offer huge opportunities for sustainable packaging. The Centre’s focus on EPR (Extended Producer Responsibility) via the Plastic Waste Management Rules (PWM), 2016, has triggered much research and innovation in recyclable and smart packaging solutions. 

Likewise, the usage of water-based inks/coatings for printing packages lowers the ecological impact linked to solvent-based options. To elaborate, water-based inks provide lower VOC (volatile organic compound), reducing the carbon trail of such products. Taken together, all these initiatives will ensure India’s sustainable packaging industry goes from strength to strength in the coming days.