Unveiling the Potential of Compostable Bags in India: Market Trends and Environmental Impact

The use of compostable plastics in India has gained significant traction over the years. While the market faced challenges due to the COVID-19 pandemic, the rise in consumer and industry awareness has led to a rapid scaling of the compostable bags market. The decreasing prices of Polybutylene adipate terephthalate (PBAT) have further facilitated the increased usage of compostable bags and packaging in India. Recognising the importance of compostable plastics as an alternative, the government has been actively promoting the certification and registration process for manufacturers. In this article, we will delve into the Indian market for compostable bags, explore market trends, and gain a comprehensive understanding of compostable plastics.

Understanding Compostable Plastics

Compostable plastics are defined as plastics that undergo biological degradation during composting, resulting in the production of CO2, water, inorganic compounds, and biomass. These plastics exclude conventional petro-based plastics and do not leave any visible, distinguishable, or toxic residue. It is essential to differentiate between compostable, biodegradable, and oxo-degradable plastics.

Compostable plastics undergo degradation by biological processes during composting, while biodegradable plastics undergo complete degradation by biological processes under ambient environmental conditions. Oxo-degradable plastics, on the other hand, are conventional plastics that break down into smaller fragments with the help of additives, potentially leading to microplastic leakage. It is crucial to note that compostable plastics hold distinct advantages over other types of plastics when it comes to diverting food waste from landfills and promoting organic recycling.

Plastic Waste Pollution in India: While compostable plastics offer environmental benefits, several challenges and consequences must be addressed. Compostable plastics require industrial composting for proper degradation, which poses a challenge due to the limited capability of industrial composting facilities in India. Additionally, non-segregation of waste at the source and the presence of low-quality compostable bags with fillers and inferior quality masterbatches can lead to environmental contamination. To combat these issues, the government is trying to implement initiatives and regulations to tighten manufacturing standards and improve waste management practices.

Government Initiatives and Regulations: To support the growth of compostable plastics, the Ministry of Environment, Forest and Climate Change (MoEFCC) and the Central Pollution Control Board (CPCB) have introduced various initiatives and regulations. These include revamping testing capacities at CIPET and empaneling private labs such as Intertek for testing of compostable plastics as per IS/ISO 17088 standard. Other notable initiatives include launching an online portal for compostable plastics e-certification, and implementing provisions for no minimum thickness requirements. The government aims to streamline the registration process and ensure compliance with testing standards.

Market Potential and Drivers: The market for compostable bags in India is being driven by rising environmental awareness, government initiatives and regulations, and changing consumer behaviour. Notable brands like Spencers , Reliance Retail and other supermarket chains have already adopted compostable bags, and the quick-commerce players such as Swiggy Instamart have shifted towards compostable delivery bags. With India's young population which is the highest in the world, showing increasing awareness of plastic pollution and a desire to adopt sustainable practices, the market opportunities for compostable plastics are vast.

Current Landscape of Compostable Plastics Industry in India: As of July 2022, there are 201 certified manufacturers of compostable plastics in India out of which 25 are active players in the market. Major players in the market offer various types of compostable bags, such as carry bags, garbage bags, pouches, and biohazard bags. Institutions like IIT Guwahati, IIT Roorkee and the Indian Institute of Packaging play a significant role in research, development, and creating awareness. Noteworthy companies, including Reliance Industries, BASF, and SKYi FKuR Biopolymers, are actively involved in developing innovative compostable polymers.

Challenges Faced by the Compostable Plastics Industry in India

Lack of Infrastructure: The limited availability of industrial composting facilities in India poses a significant challenge for the compostable plastics industry. Industrial composting requires specific conditions, such as controlled temperature, moisture, and aeration, to facilitate the degradation process. The inadequate number of composting facilities hampers the proper disposal and composting of compostable bags and packaging. To address this challenge, investment in composting infrastructure is crucial, including the establishment of more composting facilities and the development of decentralized composting systems.

Consumer Education: The lack of awareness and understanding among consumers regarding compostable plastics is a major hurdle. Differentiating between compostable, biodegradable, and conventional plastics can be confusing for the average consumer, leading to improper disposal practices. Efforts should be made to educate consumers about compostable plastics, their benefits, and the proper methods of disposal. This can be achieved through awareness campaigns, following proper labelling standards laid down by the CPCB, and collaborations with retailers to provide clear information to consumers at the point of purchase.

Quality Control and Certification: Ensuring the quality and certification of compostable plastics is essential for building consumer trust and promoting widespread adoption. The presence of low-quality compostable bags with fillers and master batches in the market undermines the credibility of compostable plastics. Implementing stringent quality control measures, conducting random market sampling , and establishing a reliable certification system can help combat the issue. Regular audits and inspections of compostable plastic manufacturers can ensure compliance with quality standards.

Cost Competitiveness: Compostable plastics, particularly those made from PLA (poly lactic acid) and PHA (polyhydroxyalkanoates) tend to be more expensive than conventional plastics.This cost disparity poses a challenge for manufacturers, making it difficult to compete in price-sensitive markets of India. The cost of PBAT from the Chinese market has, however, sharply decreased, and as of today, one is able to purchase PBAT for 2 USD per kilograms in Indian market through distribution channels.PBAT is widely available in India from companies like Jinhui Zhaolong and Kingfa who are based in China . Continuous research and development efforts should focus on finding alternative materials or production methods that can help in production of compostable plastics?without compromising their performance.

Waste Management Practices: India's waste management infrastructure faces significant challenges, including inadequate waste segregation at the source and limited collection and recycling facilities. Proper waste management practices are crucial for diverting compostable plastics from landfills and ensuring they reach appropriate industrial composting facilities. Enhancing waste segregation systems, investing in efficient collection and recycling infrastructure, and promoting decentralized composting solutions can help improve the overall waste management ecosystem.

Opportunities and Future Outlook

Collaboration and Research: Collaboration between government bodies, industry stakeholders, and research institutions is essential for driving innovation, improving infrastructure, and addressing the challenges faced by the compostable plastics industry. Continued research and development efforts can lead to the discovery of new compostable materials, improved composting techniques, and advancements in waste management practices. Partnerships with academic institutions can facilitate research on compostable materials and support the development of innovative technologies.

Awareness and Education Campaigns: Increasing awareness among consumers about the benefits and proper disposal methods of compostable plastics is crucial. Education campaigns, both by the government and industry players, can help dispel misconceptions and promote responsible consumption and disposal practices. Collaborating with environmental organizations, conducting workshops, and leveraging social media platforms can effectively disseminate information and encourage behaviour change among consumers.

Policy Support and Incentives: The government can play a pivotal role in promoting the use of compostable plastics through supportive policies and incentives. This can include tax incentives for compostable plastic manufacturers, subsidies for composting infrastructure development, and regulations that encourage the adoption of compostable alternatives by businesses and institutions. Establishing mandatory composting requirements for certain sectors, such as food and hospitality, can further drive demand and support the growth of the compostable plastics?industry.

Circular Economy Initiatives: Embracing a circular economy approach can provide significant opportunities for the compostable plastics industry. Instead of following a linear model of production and disposal, a circular economy focuses on reducing waste and maximizing resource efficiency. This can be achieved through initiatives such as compostable plastic recycling programs, closed-loop systems where compostable plastics are collected, processed, and reused, and the integration of compostable plastics into existing waste management infrastructure. Encouraging collaboration between compostable plastic manufacturers, waste management companies, and recycling facilities is essential for implementing effective circular economy practices.

Market Expansion: The demand for sustainable alternatives to conventional plastics is growing globally. The compostable plastics industry in India has the potential to tap into both domestic and international markets. By expanding product offerings beyond bags and packaging, such as compostable cutlery, food containers, and agricultural films, the industry can cater to a wider range of applications. Furthermore, exploring export opportunities and leveraging India's position as a manufacturing hub can boost the growth and competitiveness of the compostable plastics sector.

Research and Development: Continued investment in research and development is crucial for the advancement of compostable plastics. Innovations in materials, manufacturing processes, and composting technologies can lead to the development of more cost-effective and sustainable solutions. Research institutions, industry associations, and government bodies should collaborate to support R&D initiatives, provide funding, and facilitate knowledge exchange to drive innovation and propel the industry forward.

Sustainable Packaging Initiatives: The rising global concern about plastic pollution and environmental sustainability has led to increased demand for eco-friendly packaging solutions. Compostable plastics offer a viable alternative for sustainable packaging across various industries, including food and beverage, cosmetics, and e-commerce. By partnering with businesses and adopting sustainable packaging initiatives, compostable plastic manufacturers can seize opportunities to supply packaging materials that align with consumer preferences and corporate sustainability goals.

Consumer Behaviour Shift: Encouraging a shift in consumer behaviour towards sustainable choices is critical for the success of compostable plastics. Creating a culture of environmental consciousness and responsibility can be achieved through effective communication, product labelling, and consumer engagement campaigns. Highlighting the environmental benefits of compostable plastics, emphasizing their contribution to waste reduction and resource conservation, and incentivising eco-friendly consumer choices can drive demand and market acceptance.

Conclusion

While the compostable plastics industry in India faces challenges such as limited infrastructure, consumer education, quality control, cost competitiveness, and waste management issues, there are also significant opportunities for growth and innovation. Collaboration, research and development, awareness campaigns, policy support, circular economy initiatives, market expansion, and sustainable packaging initiatives are key areas to focus on to overcome challenges and foster the development of a robust and sustainable compostable plastics industry in India.