India Biodegradable Tableware & Packaging Products Market Size, Share & Trends Analysis Report By Type (Tableware, Packaging Products), By Raw Material, By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The India biodegradable tableware & packaging products market size was estimated at USD 2.06 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 6.0% from 2024 to 2030. The adverse environmental effects of plastic-based materials on the air, water, and land are significant factors driving manufacturers and consumers to seek safer and biodegradable alternatives. This has fueled growth of the market for biodegradable tableware and packaging products. Biodegradable, environmentally friendly, and sustainable materials have emerged as potential substitutes for traditional disposable tableware and packaging products. These materials can naturally decompose, ultimately diminishing their impact on the environment and promoting a more circular economy.

Over the last few years, several inventive products utilizing resources like rice bran, wheat bran, and corn starch-derived bags and utensils have been introduced to the market. These alternatives not only improve the environmental effects linked with single-use plastics but also open up fresh opportunities for waste handling and resource usage. Starting July 1, 2022, India has implemented a nationwide ban on the production, import, stocking, distribution, sale, and usage of specific single-use plastic items. These items, characterized by low utility and a propensity for littering, are now banned throughout the country. The prohibited items encompass earbuds with plastic stems, plastic sticks for balloons, candy sticks, ice-cream sticks, polystyrene (thermocol) for ornamentation, plastic plates, cups, glasses, as well as utensils like forks, spoons, and knives, among others.

A 2020 global survey released by the Ministry of Food Processing Industries (MoFPI), a division of the Indian government, reveals that consumer preferences and sustainability concerns are undergoing rapid transformation. A substantial 79% of consumers started incorporating factors such as social responsibility, inclusivity, and environmental impact into their buying habits. The study further stated that a significant percentage of consumers, particularly 53% overall and 57% within the 18-24 age bracket, showed a preference for less familiar brands demonstrating sustainable practices.

In addition, over half of consumers, constituting 52%, expressed a sense of emotional attachment to products or organizations seen as environmentally conscious. This shift underscores not only the increasing significance of sustainable packaging but also underscores the influence of sustainability on consumer purchasing choices. Moreover, the majority of consumers are highly concerned about packaging sustainability and express a willingness to pay more for sustainable and biodegradable tableware and packing products.

India boasts a diverse cultural landscape with a rich culinary heritage, and there is a growing willingness among people to explore novel cuisines and dining experiences. This shift has fostered the expansion of specialized restaurants that offer distinctive and inventive dining encounters. As an illustration, an article published by Franchise India Holdings Limited in August 2021 reported a 50% surge in sushi orders from 2019 to 2021. The increasing preference for home dining through online orders, evolving lifestyles, and the surge in urbanization are propelling the expansion of the biodegradable tableware and packaging product market in India.

In recent times, there has been a rapid expansion in edible packaging research, driven by heightened consumer interest in aspects like health, food safety, nutrition, and environmental preservation, particularly concerning packaging waste in India. For instance, INTUGREEN is a privately owned limited company situated in Coimbatore, Tamil Nadu. It specializes in the production of eco-friendly items, including edible and biodegradable tableware and dinnerware crafted from rice flour, millet flour, areca leaves, and bagasse.

Type Insights

Biodegradable tableware dominated the type segment with a revenue share of around 58% in 2023. In India, both small and large-scale manufacturers, as well as micro, small, and medium enterprises (MSMEs), are actively engaged in the production of biodegradable tableware, contributing to an environmentally responsible trend. Various players in the country offer innovative tableware that do not get soggy when dipped in any beverage. Bangalore-based Sunbird Straws offers biodegradable drinking straws that are 100% biodegradable, chemical-free, multi-layered with a hydrophobic layer in the outer & inner walls, and anti-fungal. These straws do not get soggy or leak any color.

Biodegradable packaging is projected to grow at a CAGR of 6.4% from 2024 to 2030. In the food & beverage and food service industries, there's a growing trend of using biodegradable packaging. The Omega series introduced by ITC of biodegradable paperboards, including 'OmegaBev', 'OmegaBarr', and 'OmegaBowl', is made from 100% virgin fibers and features a bio-based barrier coating. Designed for takeaway packaging, Omega products are oil and grease-resistant, capable of retaining heat, and can be molded into bowls, cups, and containers suitable for freezing.

Raw Material Insights

In 2023, wood emerged as the dominant material with a market share of over 26%. Consumers prefer wooden tableware over single-use plastic material as they are lightweight, resistant to heat, biodegradable, and reusable. In addition, with the ban on single-use plastic by the Indian government in July 2022, there has been a sharp rise in the demand for wooden cutlery, stirrers, plates, and trays. According to a July 2022 article in the Economic Times, manufacturers in cities of India such as Delhi, Saharanpur, Kolkata, and Moradabad noted a 25% hike in orders for wooden tableware compared to the months preceding the ban.

Paper material is expected to grow at a CAGR of about 6.8% from 2024 to 2030. Paper-based biodegradable tableware is lightweight and durable, with the capacity for multiple uses before disposal. This makes it highly suitable for catering services, outdoor events, and gatherings, where its reusability adds value while retaining the convenience of disposability. For instance, Fresh Tableware, based in New Delhi, offers a range of high-quality, biodegradable, compostable plates made from natural materials ideal for outdoor catering events, parties, and many more.

Regional Insights

In 2023, the Northern region emerged as the market leader, capturing a significant share of over 33%. This region’s market for online meal delivery is expanding rapidly.The rise in food delivery has also increased the need for packaging materials in Northern India. Restaurants and businesses have been experimenting with more environmentally friendly food packing techniques as businesses and consumers worldwide grow more eco-conscious.For instance, the Uttar Pradesh-based company Pakka Limited produces entirely compostable food packing containers under its Chuk project. These containers are made of pulp, have tight-fitting lids, and are spill-proof.

The Southern region is expected to achieve the highest growth rate of about 6.8% over the forecast. Southern metropolitan cities such as Bangalore and Hyderabad have always topped the charts in the online delivery of food. Such high food delivery orders have increased the demand for biodegradable cutlery and packaging to combat the ill effects of plastic waste. Hardcastle Restaurants, the McDonald's master franchisee, has been replacing plastic packaging with eco-friendly and biodegradable alternatives since 2018. The initiative commenced with prominent cities in Karnataka, and the company began devising a strategy for a comprehensive market overhaul in the next years.

Key Companies & Market Share Insights

Pakka Limited is a prominent manufacturer of regenerative packaging solutions for food products. It has become the preferred choice for over 150 Quick Service Restaurants (QSRs), including renowned names such as Lite Bite Food, Google, Chaipoint, Starbucks, Haldiram's, PVR, Inox, and Amazon.

Recent Developments

• In October 2023, Thooshan partnered with the Indian Southern Railway for the Swachhta Pakhwada campaign. It held an exhibition of articles made of organic materials that can be used as alternatives to single-use plastic.

• In September 2023, Tamul Plates Marketing Private Limited announced its plans to set up manufacturing units for areca nut leaf plates throughout Northeast India using its Cluster Model. Under this initiative, community-owned micro-enterprises will partner with the company to collectively produce these plates.

• In July 2023, Pakka Limited adopted a new name upon its introduction to the National Stock Exchange, aiming to streamline its brand identity and create a unified global presence. This rebranding aligns with the company's aim of revolutionizing food packaging by providing regenerative solutions, thus playing a crucial role in promoting a more environmentally sustainable planet.

India Biodegradable Tableware & Packaging Products Market Report Scope

India Biodegradable Tableware & Packaging Products Market Report Segmentation

This report forecasts revenue growth at regional & country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the India biodegradable tableware & packaging products market report based on type, raw material, and region:

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Tableware

    • Plates/Trays

    • Bowls

    • Cups

    • Cutlery

    • Others

  • Packing Products

    • Containers

    • Packaging Wraps & Bags

    • Boxes

    • Clamshells

    • Others

• Raw Material Outlook (Revenue, USD Million, 2018 - 2030)

  • Wood

  • Bamboo

  • Paper

  • Bioplastic

  • Bagasse

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • Northern India

  • Southern India

  • Eastern India

  • Western India

  • Central India