Recycling is the new buzzword in the industry. A few years ago, recycling would be confined to a corner of any plastics or packaging event. However, as plastic packaging consumption spirals upward in India, and voices for sustainable alternatives grow louder, plastic recycling has become all the more important and gained prominence – acquiring its status as an independent segment. A case in point is dedicated events, conferences, and discussions on plastic recycling and the need to find sustainable alternatives.
The narratives at the second edition of the Global Conclave on Plastics Recycling and Sustainability (GCPRS) recently held at Delhi’s Bharat Mandapam, the sixth Plastic Packaging Research and Development Centre (PPRDC) summit in Delhi or The Elite Conference on Injection, Blow Moulding and PET in Mumbai all point to how sustainability has taken the center stage.
India’s recycling industry is as fragmented as the packaging sector. According to industry insiders, at present, there could be about 3,000 registered plastic recycling units following norms – and hundreds and thousands of informal and unregistered recyclers.
The organizers of the global conclave on plastics recycling estimated that only 30% of India’s 3.4 million tons of plastic waste is recycled, which means there is an enormous untapped potential for recovery and reuse.
Regulations such as the mandatory use of recycled content in the extended producer responsibility (EPR) regime amid a packaging boom are creating a robust framework where the plastics recycling industry can thrive and grow.
The EPR regime mandates the use of 30% recycled plastic for category I packaging, defined as rigid plastic, which includes PET bottles, primarily used by beverage manufacturers. Category II, which provides for flexible mono-layered plastics, has to use 10% recycled plastic, while category III, multi-layered plastics, has a 5% target for FY 2025-26.
All categories have a specific annual increase in targets. Category I has a 60% target by FY 2028-29, and category II has 20%. Category III has a 10% target to meet by FY 2028-29. The norms apply to all PIBOs (producers, importers, and brand owners) who manufacture, import, or use plastic packaging materials.
These targets have created a robust demand for the nascent plastic recycling industry. The organizers of the global conclave estimate that India’s recycling industry is valued at $2.18 billion and growing at 10.76% CAGR, with good demand for recyclates.
India’s plastic recycling volume is estimated to double from 10.9 million tons in 2024 to 25.4 million tons in 2033. However, all these are rough estimates as the industry in India is fragmented. The global plastic recycling market is also expected to reach US$45.5 billion by FY 2024-25, with a CAGR of 9.8% from 2023 to 2030.
Recyclers we spoke to at various events and in private conversations say NOW is the time to invest in the recycling sector if one looks at it from a purely business perspective. The clamor over the increasing challenge posed by plastics has also created an enormous demand for sustainable alternatives. According to one estimate by the All India Plastics Manufacturers’ Association and the Chemicals and Petrochemicals Manufacturers’ Association, which organized the GCPRS event, India looks at a sustainable packaging boom with a US$100.49 billion market, growing at 5.4% CAGR.
At the Elite meet, sustainability and the need for sustainable alternatives formed a major part of the discussions, and we found that the industry is alive and active to the challenges in the sustainable production of plastic containers with recycled content and their collection and recycling.
There are arguments that plastic and packaging are being unnecessarily made a villain and that the problem of plastic pollution is more of a littering issue, and can be managed well if the existing guidelines were implemented well. Others say this presented the industry with an opportunity to scale up production of eco-friendly material and extensive R&D in the field.
Amid all these arguments, while there is no denying that managing plastic is indeed a challenge, we also have to realize that completely replacing plastic is by far not possible in the near future, given its enormous advantages across industries.
At the Elite meet, recycling specialist Mani Vajipey of Banyan Nation spoke about how packaging waste has a bearing on urban infrastructure, waterways, and public health. At the same time, he said this presented a tremendous growth to the plastic recycling industry, which could generate up to 1.6 million jobs across multiple domains, including logistics, quality control, and equipment manufacturing.
According to him, stakeholders were responding based on narrow perspectives — with concerns about costs, supply chain uncertainty, digital disruption, and regulatory burden — while missing the broader picture of systemic change, which could establish India as a leader in circular economy practices.
