India’s dairy industry’s reliance on plastic packaging and its environmental impacts are massive. Innovative, sustainable alternatives like bioplastics, recycled materials, and smart packaging can foster a transition towards eco-friendly, scalable packaging solutions for a sustainable future
he Indian dairy industry, the largest in the world, plays a vital role in ensuring food security while contributing significantly to packaging waste. With an expected market of ₹30 lakh crore by 2030, the sector relies heavily on plastics and multi-layer laminates for product safety and shelf life. The rising environmental concerns and tightening regulatory frameworks demand a shift towards sustainable packaging. This blog intends to explore the current packaging practices in the Indian dairy sector, identify the key challenges to adoption, highlight emerging innovations, and offer future recommendations to transition towards eco-friendly, scalable packaging solutions that balance cost and sustainability.
Understanding the Current Landscape
The Indian dairy industry is divided between the organised and unorganised sectors. The organised sector, comprising approximately 30–35 percent of the market, includes large cooperatives like Amul and Nandini and private corporations such as Nestle and Hatsun. The segment deals in value-added products like cheese, yoghurt, flavoured milk, and ice cream, operating under regulated frameworks in compliance with Extended Producer Responsibility (EPR) norms and food safety standards. The unorganised sector, accounting for around 65–70 percent, comprises local milkmen, smallholder dairies, and roadside vendors. It primarily distributes raw or minimally processed milk with minimal or no formal packaging, contributing to challenges in packaging waste management and regulatory compliance.
Reliance on Conventional Packaging Formats
These sectors heavily depend on conventional packaging materials to ensure product safety, shelf life, and affordability. Low-density polyethene (LDPE) plastic pouches dominate urban milk distribution, accounting for nearly 75 percent of the market. High-density polyethene (HDPE) bottles are widely used for flavoured milk and probiotic beverages, offering sturdiness and consumer convenience. At the same time, Tetra Pak cartons provide extended shelf life for ultra-high temperature (UHT) milk and fruit-based drinks. Still, they are difficult to recycle due to their multilayered composition.
Environmental and Economic Impact
Conventional packaging poses significant environmental challenges, annually generating large volumes of low-recyclable plastic waste of approximately 3.5 million tonnes. Limited circularity is adopted due to a lack of infrastructure and recycling gaps under the current regulatory landscape, low consumer education, and lack of segregation and collection systems at the regional level, resulting from waste management issues. LDPE and HDPE are heavily dependent on fossil fuels with high CO2 footprints. Life cycle assessments reveal that LDPE pouches emit ~7.5 kg CO2 per 1000 units, while HDPE bottles emit ~6.8 kg and Tetra Paks ~5.5 kg. While conventional packaging remains cost-effective (₹1–₹5 per unit), its hidden ecological costs, viz. soil (microplastic), water and air pollution, carbon emissions, and regulatory risks, are becoming increasingly unsustainable, urging a shift toward greener alternatives.
News Courtesy : Forbes India