India Mandates Recycled Plastic Use, Impacting Global Beverage Giants
India has introduced a new regulation requiring packaged beverage manufacturers to include a mandatory percentage of recycled plastic in their packaging—a move that directly affects global FMCG players such as Coca-Cola and PepsiCo.
Effective immediately, the rule mandates that packaging for non-food-grade PET (polyethylene terephthalate) bottles must contain at least 30% recycled content. This threshold will rise to 50% by 2030. For food-grade PET, widely used by beverage brands, the initial target is 10%, climbing to 25% within the next six years. The regulation applies to both domestic manufacturers and importers, ensuring that international companies must comply if they wish to operate in the Indian market.
This legislation is part of India’s broader Extended Producer Responsibility (EPR) framework, designed to shift the responsibility of plastic waste management back onto producers. According to India’s Environment Ministry, the country generates an estimated 3.5 million metric tons of plastic waste annually, placing mounting pressure on regulators to tackle environmental degradation from single-use packaging.
The new mandate signals a significant market shift for FMCG brands, especially those reliant on PET packaging. While major players like Coca-Cola India have made voluntary steps—announcing in 2022 a roadmap to use 50% recycled content in PET bottles by 2030—regulatory enforcement adds urgency and accountability.
A key challenge is the availability of food-grade recycled plastic, which remains limited in India due to current recycling infrastructure and safety standards. Industry stakeholders have expressed concern over the lack of sufficient supplies, indicating potential bottlenecks in compliance and operations. Addressing this gap will likely require expanded investment in collection systems, advanced recycling technologies, and local supply chain development.
India’s move aligns with a global momentum toward circular packaging. The European Union and several U.S. states have already introduced similar recycled content mandates, pushing multinational brands to rethink sourcing and packaging strategies across key markets.
For FMCG leaders, the regulation offers both a compliance challenge and a strategic opportunity: to build more resilient, environmentally conscious supply chains in one of the world’s largest consumer markets.