In 2024, packaging continues to play a crucial role in the fast-moving consumer goods (FMCG) sector, influencing everything from consumer behaviour to environmental impact. The FMCG industry in India is valued at over USD 120-billion. 

This market is driven by factors such as urbanisation, increasing disposable income, and evolving consumer preferences. And then, there is the eco-consciousness. For instance, Britannia Industries has been 100% plastic-neutral for three years, collecting and processing over 45,000-tonnes of plastic in FY 2024. The brand’s Har Pocket Ab Dustbin campaign, launched on Earth Day, encouraged consumers to adopt responsible waste disposal habits, combining awareness with actionable impact.  

Marico aims to achieve 100% recyclable packaging by 2025, with a focus on sustainable packaging interventions and promoting circularity to reduce its carbon footprint. During this period, it plans to phase out hazardous substances such as PVCs while introducing at least 30% post-consumer recycled plastic in its packaging portfolio.

The point is that sustainability is no longer just a buzzword for Indian companies; it’s becoming a fundamental part of their business strategies. Brands must walk the talk — reducing plastic use, sourcing responsibly, and embracing renewable energy. For example in Bikano, a leading packaged food company, sustainability isn’t just a strategy — it’s an operational imperative. From energy-efficient production to sourcing ingredients responsibly and minimising food waste, the efforts not only reduce its carbon footprint but also enhance brand loyalty.

Packaging is directly related to this growth as it influences the accessibility, appeal and affordability of such products. In India, convenience packaging, such as single-use sachets, influences consumer behaviour. The Indian packaging market is growing rapidly with CAGR projected to increase between 12–15% from 2024–2029.

Two things emerged when WhatPackaging? surveyed Gen Z. One, packaging eases mobility and caters to portion control and a time-starved population. The best example is Maggi, a staple in many Indian households offering a variety of packaging options from single-serve pouches to family packs. And two, lower price points. The demand for smaller more portable products is expected to increase India’s FMCG market is also highly price-sensitive in rural and semi-urban areas. 

Packaging ensures many single-use products cater to those with lower disposable incomes, making premium products more accessible. This strategy expands volume sales by encouraging repurchasing, thus increasing the overall customer base.

According to a recent report in Financial Express, Nykaa aims to grow in FY25, a contributing factor being a shift from air to land shipping on packaging costs, and new categories and packaging in the beauty segment. 

The fashion industry is one of the sectors experiencing a seismic shift. Sustainability in clothing is a key part of Uniqlo’s business strategy. The use of recycled materials in products like fleece jackets and innovations in water-efficient production processes. These efforts are communicated through campaigns that emphasise the brand’s commitment to sustainable choices.

Despite these efforts, FMCG is one of the largest contributors to plastic waste with about 40% of the plastics produced globally used for packaging. According to Global Data, about 8-million tonnes of plastic waste enter the ocean annually.

The food and beverage segment of FMCG contributes to a significant amount of global food waste with about 1.3 billion tonnes of food generated annually according to reports, although experts say the real figures are possibly much higher.

FMCG products such as batteries and cleaning products often end up in landfills or incinerators releasing harmful chemicals into the environment accounting for about 8-10% of global greenhouse gas emissions. eWaste from FMCG electronics contributes to over 50-million tonnes wasted annually with only 20% being recycled properly. FMCG goods also rely heavily on cardboard and paper packaging contributing to deforestation and waste. 

About 80% of this ends up in waste streams.

In all this, the news from the recently concluded plastic treaty agreement in Busan was depressing. Negotiations over the first legally binding UN treaty on plastic pollution collapsed in the final stage of discussions after oil-producing nations blocked the oil production limits.

The plastics bosses say limiting plastic usage will have inflationary consequences on consumers.  Meanwhile, oil-producing nations say they prefer waste management to curbing plastic production.

The problem is as follows: the brands seek indestructible protective packaging, and the consumers want plastic packaging to be sustainable.

Mantras like the three Rs (reduce, reuse, recycle) are deployed at all forums, but no one knows which of the Rs should be prioritised.

One thing which we have understood is that most sustainable packaging is shockingly old school. Time to add one more R to the three Rs. It's time for a Re-think.