As India’s USD 3.5 trillion economy grapples with plastic pollution, bioplastics are emerging as a transformative solution for the ₹50,000 crore packaging industry, promising sustainability through biodegradability and renewable sourcing.
With the worldwide market for bioplastics expected to expand from USD 14.07 billion in 2025 to USD 39.65 billion in 2032 with a 10.50% CAGR, according to a 2024 WiseGuy Reports report, new developments in materials such as PLA and PHA, combined with regulatory demands, are stimulating uptake in food, cosmetics, and consumer products.
Despite that, India’s MSMEs are subjected to regulatory holdups, human resource shortages, and infrastructure deficits, which may hamper scaling a USD 10 billion green packaging market by 2030.
Bioplastics, which come from renewable materials such as corn starch, sugarcane, or brewery waste, have tremendous environmental advantages, breaking down 60–80% quicker than non-renewable plastics and lowering greenhouse gas emissions by as much as 25%.
Initiatives such as BioSupPack in Europe are creating compostable packaging from brewer’s spent grain, good for food and cosmetics, according to a June 2025 X post by @PackagingEurope. In India, bioplastics keep pace with e-commerce-driven packaging growth, expected to reach a 3.6% CAGR to USD 604 billion by 2029, according to a 2025 Smithers report. McDonald’s move to paper-based packaging indicates a wider trend toward sustainable alternatives, according to a 2024 IndustryIntel report.
Regulatory environments are driving this shift. India’s low-VOC material drive under PM Gati Shakti, as well as international prohibitions such as Nigeria’s ban on single-use plastics in January 2024, offers opportunities for bioplastics, according to a 2024 UKHI report.
The EU’s Packaging and Packaging Waste Regulation and levies on non-recycled plastics also promote sustainable alternatives, according to a 2024 Innova Maquinaria report. In India, Union Budget 2025 emphasis on MSMEs and sustainability, such as tax relief on biodegradable materials, drives the adoption of bioplastics, according to a 2025 Hindustan Times report.
The ₹50,000 crore PLI plan aids MSMEs, which provide 30% of packaging inputs, while ONDC increases market reach by 25%, according to a 2024 SIDBI report.
Innovations are placing bioplastics on a level playing field. UC Davis research in June of 2025 proved low-cost bioplastics from dairy waste for food films, according to a post by @MRFImpacts. In India, collaborations such as UST and T-Works use AI and prototyping to create sustainable packaging, according to a 2025 ET Manufacturing report.
Recycled PLA and plant-based films solve recycling problems, according to a 2025 Meticulous Research report, which forecasts the sustainable manufacturing market, including bioplastics, to hit USD 430.64 billion by 2032.
Promises aside, there are challenges. Approvals for bioplastics for India take 4–6 years compared to China’s 2 years, hindering innovation, as a 2024 Nasscom report points out. MSMEs have compliance expenses of ₹1–2 lakh per month, which hinders scalability, according to a 2025 ET Retail report. Infrastructure shortages, such as unreliable power, halt production for 20% of units. Feedstock availability and recycling infrastructure continue to be bottlenecks, according to a 2025 Newstrail report.
Just 15% of MSMEs are on ONDC, and only 5% of Skill India’s 2 million skilled employees know bioplastic tech, according to a 2024 Nasscom report.
Experts also recommend solutions. Subsidies under the Technology Upgradation Scheme can reduce MSME expenses, according to a 2025 Business Standard report. Scaling up Skill India’s bioplastic training, increasing 5G and power reliability through PM Gati Shakti, and promoting public-private partnerships with IITs for R&D can address gaps, according to a 2025 LatestLY report. CII-led initiatives can increase ONDC adoption and consumer education, according to a 2025 Decoding Biosphere report.
Bioplastics, with their green advantage, are going to reshape green packaging. For India, breaching regulatory, skill, and infrastructural hurdles will become crucial to gaining from the trend, as per a Viksit Bharat by 2030.