OPINIO
Trade4go
Mar 21st, 2025
Original content
India is currently facing significant challenges in managing plastic waste due to its large population and high consumption levels. To address this, the government has introduced and amended the Plastic Waste Management Rules over the years, with the latest 2024 rules emphasizing stricter Extended Producer Responsibility (EPR), bans on single-use plastics, and promoting biodegradable alternatives. The unofficial recycling sector has a significant role in India, yet it is still unregulated. Further training, certification and incentives are needed to strengthen this sector. Furthermore microplastics pose a severe threat to ecosystems and human health. The rules need to expand their focus on microplastics by introducing measures to monitor, reduce, and eliminate their presence in water bodies and soil.
Additionally, leading food manufacturers, such as Unilever are actively experimenting with alternative packaging solutions in India, focusing on sustainable packaging and green food products to align with global environmental goals.
Despite regulatory efforts, challenges like inadequate infrastructure, informal recycling sectors, and enforcement gaps persist. Innovations like Artificial intelligence (AI)-based waste sorting, sustainable packaging, and active participation from businesses and consumers are critical to addressing plastic pollution and fostering a cleaner, greener future.
Figure 1. India’s Plastic Waste Management Timeline
Source: Banyan Nation
Unilever has been piloting several alternatives to reduce the use of virgin plastic. The company has invested heavily in sustainable packaging, with around 60 global scientists working on material research and a dedicated team in India. Since 2021, Unilever has screened approximately 3,000 materials and is exploring paper-based packaging combined with other materials. This is particularly useful for food products in India, which require more extended shelf life due to the country's hot and humid climate.
Several of Unilever's food brands in India have already adopted recycled plastic. Globally, the company uses 22% recycled plastic, compared to the industry average of 13%, and aims to increase this to 25% by 2025. By 2030, Unilever plans for all rigid plastic packaging to be reusable or recyclable, with flexible plastic packaging targeted for reuse or recycling by 2035.
To further its efforts, Unilever, in collaboration with USAID and Ernst and Young (EY), launched the CIRCLE Alliance program in 2024 with a budget of USD 21 million. The program focuses on reducing plastic waste in India and supporting small businesses while increasing the volume of recycled plastic. Pilot programs for refillable and reusable containers, such as refill stations for detergents and sauces, aim to reduce single-use plastics, a significant source of waste in the country.
Figure 2. Unilever's Kissan Grape Squash 750 ml
Source: Flipkart Health+
Unilever reported a 2.6% year-on-year (YoY) increase in underlying sales for its food segment, with minimal volume growth of 0.2% YoY due to a market slowdown and moderating prices. Ice cream sales rose by 3.7% YoY, driven by a 1.6% YoY increase in volume, supported by innovations and operational improvements. Emerging markets, which account for 58% of the company's turnover, saw a 4.1% YoY rise in underlying sales. In India, sales grew 1.8% YoY, with 2.4% YoY volume growth, with Home Care growth leading the way.
For 2025, Unilever expects underlying sales growth to remain within its 3%-5% multi-year range, with improvements anticipated later in the year as price increases reflect higher commodity costs. The company also forecasts a slight improvement in its operating margin compared to 18.4% in 2024.
India's food market is expanding as urbanization and disposable incomes rise. Consumers are increasingly seeking varied food options, and online shopping is gaining traction. Although online sales currently account for just 2% of Unilever's overall sales in India, this figure could rise to 10%-15% in the near future. Unilever is also working on lighter and greener packaging, leveraging a database of 160 types of recycled plastic to develop innovative solutions.
However, challenges remain. Many consumers lack awareness about proper waste disposal, and recycling infrastructure is still underdeveloped. To address these issues, Unilever is partnering with schools, suppliers, and community groups to promote better waste management practices.
Nestlé India has followed the growing demand for convenience foods and healthier options. The company has introduced products like fortified cereals, ready-to-eat meals, and low-sugar beverages to cater to health-conscious consumers. Nestlé is also investing in sustainability by reducing plastic usage and promoting recycling initiatives, such as its "MAGGI Wrappers Return" program, which encourages consumers to return used packaging for recycling.
Tata Consumer Products has been focusing on health and wellness trends by introducing products like herbal teas, fortified water, and plant-based beverages. Tata has been actively involved in sustainability initiatives, such as reducing water usage in manufacturing and promoting the use of biodegradable packaging.
India remains one of the most important markets for leading food manufacturers, with significant growth potential driven by economic reforms, rising disposable incomes, and evolving consumer preferences. Despite challenges in plastic waste management and recycling, global retailers like Nestlé, Tata, and Unilever's investments in sustainable packaging, innovative programs, and partnerships position the company to capitalize on India's expanding market while contributing to a greener future.
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