The following is a brief introduction to the topic:
Sustainability and industrial growth are at a crossroads in the world. Packaging, once considered a functional necessity, has now become a major theme in global sustainability discussions. The demand for biodegradable packaging is on the rise, from supermarkets in Europe to giants of e-commerce in Asia. This sector is not only an opportunity for Indian entrepreneurs and startups to reduce plastic waste, but it also represents a lucrative business with great global potential.
According to the Plastics Export Promotion Council, under the Ministry of Commerce and Industry of India, India’s plastic exports will reach USD 11.54 billion by 2023-24. Packaging items (flexible and stiff) are expected to contribute around 5.5% of India’s total exports. The biodegradable packaging market is on the rise as the regulatory restrictions on single-use plastics increase. This will allow startups to take advantage of domestic and international demand.
This article will provide a detailed look at the Indian market, including its growth drivers, models of circular economy, support from policy, and business strategies.
The Global Shift Towards Sustainable Packaging
Three powerful forces are driving the shift away from conventional plastic packaging to biodegradable or compostable packaging:
- Consumer Demand: Environment-conscious consumers prefer eco-friendly packaging, particularly in food delivery, FMCG, and e-commerce sectors.
- Policy Push: Governments around the world, including India, have banned single-use plastics. This has created a strong regulatory incentive to use biodegradable alternative materials.
- Corporate Commitments Global brands such as Unilever, Nestle and Amazon have committed to adopting recyclable and biodegradable packaging solutions.
View our Books on Environmentally Friendly, Eco-Friendly Products, Natural Products, Biodegradable Plastics, Natural Dyes and Pigments, Jute Products, Natural Fibers
Market Forecast (Global & India).
| Market Segment | 2023 Value (USD Billion) | Projected 2030 Value (USD Billion) | CAGR (2023-2030). |
| Global Biodegradable Packaging Market | 105 | 210 | ~10-11% |
| Indian Biodegradable Packaging Market | 3.2 | 7.5 | ~12-13% |
| Share in Global Trade (India). | ~3% | ~6% (projected) | Double your income by 2030 |
Key insight: India’s biodegradable package sector could reach USD 7.5 billion by 2030. This is due to both domestic and export demand, particularly in the food service and ecommerce sectors.
India Packaging Exports: Current Scenario
According to data from The Plastics Export Promotion Council, plastic packaging exports reached USD 633.74 in 2023-24. This represents a modest increase of 1.43% YoY. This growth may seem modest, but the real change is in biodegradable, value-added alternatives that are attracting premium demand globally.
It is clear that packaging, despite being a small part of exports overall, is one of fastest growing categories, particularly when aligned to sustainability goals.
Related: Innovative Approaches to Sustainable Packaging Solutions
Circular Economy Approach
The circular economy is at the core of biodegradable packages. This model allows materials to be recycled, composted or reused without harming the environment. This presents two lucrative options for Indian startups:
- Producing biodegradable packaging: using raw materials such as sugarcane bagasse (bagasse), cornstarch, seaweed-based polymers, and bamboo fibers to make cups, plates and cutlery.
- Recycling and Composting infrastructure: Develop localized units to collect, compost, and recycle biodegradable packages, creating a closed loop system.
For example, a startup could produce sugarcane bagsasse plates for restaurant use and set up a service to collect used plates and compost them for biodegradation. This would ensure a profitable business cycle.
Government Policy Support
India is at the forefront in banning single-use disposable plastics and encouraging ecofriendly alternatives.
- Foreign Trade Policy 2020: Export incentives for sustainable products with added value.
- Extended Producer Responsibilities (EPR): Encourages manufacturers to assume responsibility for end-of-life management of packaging.
- PLI (Production Linked Incentives). Although the focus is primarily on electronics and manufacturing, there are discussions underway about including eco-friendly materials.
- MSME Schemes: Subsidies on equipment, energy audits and patent registration help startups innovate packaging.
According to the Plastics Export Promotion Council (PEPC), multiple seminars and workshops were held in 2023-24 on digital competitiveness and recycling regulations. MSME support schemes also featured. These events reinforced the commitment of government to a circular economic system for plastics and packaging.
Startups in Biodegradable Packaging
Biodegradable packaging offers low entry barriers and high scalability for Indian entrepreneurs. Here are some areas with high potential:
1. Food Service Packaging
- Straws, plates, cups and trays made of bagasse, cornstarch and bamboo.
- Demand from airlines, restaurants, cafes and food delivery apps is on the rise.
2. E-commerce packaging
- Bubble wraps and tapes are biodegradable.
- Amazon, Flipkart and Myntra actively seek suppliers of eco-friendly packaging.
3. Retail & FMCG
- Compostable film for snack packaging.
- Bioplastic bottles are available for personal care products.
4. Export-Ready Premium Products
- Biodegradable shopping bags and cling film for European and North American market.
Related: Biodegradable Packaging Driving India’s Circular Economy Boom
Investment Feasibility and Financials
Capital planning is a key factor in startup success. According to NPCS research here is a typical snapshot of an investment for a manufacturing unit that produces biodegradable products (capacity 10 MT/day).
| Investment Head | Estimated cost (INR million) |
| Land & Building | 20-25 |
| Machines & Equipment | 35-40 |
| Raw Material (Bagasse/PLA, etc.) | 10-12 (working capital/month) |
| Utilities & Miscellaneous | 5-8 |
| Total Cost of Project | ~70-80 |
Financial Indicators (Typical):
- Payback Period: 2.5-3 Years
- IRR: 28-32%
- DSCR: 2.0-2.3
Niir Project Consultancy Services – Role
Structured professional guidance for new entrepreneurs is essential when it comes to biodegradable packaging.
- Niir Project Consultancy Services prepares detailed techno-economic feasibility reports.
- These reports cover the manufacturing process, raw material, plant layout and financials.
- NPCS assists entrepreneurs in assessing the feasibility of establishing new businesses or industries, ensuring that investors make informed decisions.
NPCS is a partner in knowledge and growth for startups looking to enter the biodegradable packaging market.
Turn Your Passion Into Profit – Try Our Business Finder Tool Today
Case Study Insights on Export Trends
- India’s top destinations are still Europe & NAFTA, but the demand is shifting towards WANA (West Asia & North Africa), and Africa. Both of these regions are experiencing double-digit growth.
- The fastest growing categories are medical plastics and packaging. Biodegradable packaging can be combined with medical grade standards to open niche export channels.
- In 2023-24, countries like UAE, Oman and South Africa registered positive export growth, indicating a growing receptivity to India’s eco friendly exports.
Challenges that Startups Face
- Biodegradables are typically more expensive than plastics. Scaling up production is essential.
- Many businesses do not know the difference between compostable and biodegradable. Education is needed.
- Standards & Certifications : Export markets require strict compliance with US FDA and EU EFSA norms.
- Supply Chain Management: Establishing collection systems and composting systems increases credibility in the circular economic system.
Future Outlook (25-2030).
- India could become one of the five largest exporters of biodegradable plastic packaging in 2030.
- Export-led growth will be complemented by domestic consumption driven by Swiggy, Zomato and D2C brands.
- This sector has the potential to grow by 10-12% annually, thanks to government policy, innovation from startups, and global demand.
Conclusion
Biodegradable packaging is not a far-off vision. It is now a reality that is rapidly spreading across the global trade channels. This is a rare opportunity for Indian startups to become leaders in sustainable manufacturing. Entrepreneurs can build profitable businesses and contribute to a more sustainable world by leveraging government assistance, export promotion data provided by Plexconcil and consulting expertise offered by NPCS.
India’s transition from a major plastics exporter to a hub of sustainable packaging solutions may redefine its role within the global supply chain. Startups should seize this opportunity.