With India’s packaging sector running towards an anticipated USD 204.81 billion valuation in 2027 at a 26.7% CAGR, businesses are laying investment in research to create superior coatings that improve the durability and sustainability of packaging material.
Compelled by regulations, consumer pressure for green solutions, and the growth of e-commerce, such novel coatings are revolutionizing food, beverage, and retail packaging.
Though supporting India’s National Green Mission and international sustainability objectives, high R&D expenses and scalability issues risk holding back adoption, most notably for smaller companies.
The drive to sustainable packaging is driven by environmental pressures and regulatory requirements. India’s Plastic Waste Management Rules, 2016, revised in 2021, prohibit single-use plastics and establish 25% recycled content by 2030 under Extended Producer Responsibility (EPR).
Across the world, the EU’s Single-Use Plastics Directive and REACH rules limit microplastics and VOC emissions, which affect India’s USD 2 billion packaging exports. Of the 26 million tonnes of plastic waste produced every year in India—60% sent to landfills or incinerated, according to a 2024 CPCB report—these coatings help minimize waste and emissions in favor of a circular economy.
These are led by bio-based coatings. Polylactic acid (PLA) coatings, derived from corn starch, enhance food packaging durability while degrading in 180 days under industrial composting, per a 2023 IIT Bombay study. UFlex, a leading packaging firm, has adopted PLA coatings for snack pouches, extending shelf life by 20% and cutting carbon footprints by 30%.
Polyhydroxyalkanoates (PHA) coatings, made through bacterial fermentation, are water-proof and marinally biodegradable, applied by companies such as EcoPack Solutions on beverage cartons. These coatings lower dependence on 8% of global oil utilized for plastics, according to a 2024 FICCI report.
Recycled-content coatings are also picking up speed. Chemically recycled PET (rPET) coatings, engineered by the likes of Reliance Industries, offer food-grade quality with 90% recyclability, as opposed to 9% for mechanical recycling, according to a 2024 CII report. Used on drink bottles, such coatings satisfy EPR requirements and cut virgin plastic consumption by 25%.
Enzyme-based coatings, championed by worldwide frontrunners like Samsara Eco and developed at IIT Delhi, disintegrate multilayered plastics into monomers, which can be recycled infinitely. These innovations align with India’s vision to recycle 70% of plastic waste by 2030.
Nanotechnology is driving performance. Nanocellulose additives, the first pioneered by IIT Madras, increase coating tensile strength by 20%, perfect for rigid packaging in wet climates. Graphene-based coatings, premiered by BASF at an expo recently, enhance barrier properties by 30%, extending freshness for e-commerce deliveries, which are growing at 20% per annum.
These finishes meet BIS’s low-VOC regulations and REACH, making exports to the EU possible, representing 15% of India’s packaging industry. Demand from consumers, with 65% of urban Indians preferring eco-friendly packaging according to a 2024 Nielsen survey, also propels uptake.
Business houses are spending big on R&D. Huhtamaki India had ₹500 crore dedicated to bio-based coating research in 2024, while Tetra Pak’s hybrid coatings of 80% recycled content mixed with PHA reduced the emission rate by 35%.
GreenWrap Innovations, a startup, is looking at algae-based coatings that utilize CO2 as a feedstock during manufacturing, lowering emissions by 10 kg per ton. These initiatives complement the Production-Linked Incentive (PLI) scheme, which dedicates Rs. 50,000 crore to the National Research Foundation (NRF) for green technology R&D.
Government programs are driving improvements. The Raising and Accelerating MSME Performance (RAMP) program is assisting smaller companies, which make 40% of packaging, in embracing sustainable coatings. PM Gati Shakti improves supply chain efficiency for bio-based raw materials.
The Skill India Digital Hub has certified 2 million workers in advanced manufacturing since 2023, but only 5% possess coating technologies skills, according to Nasscom.
Challenges persist. Sustainable coatings are 20-30% more expensive than traditional ones, thus MSME uptake is capped at 12%, according to a 2024 SIDBI report. In some cases, such as PLA heat sensitivity, applications are hindered in tropical regions. Infrastructure shortages, e.g., uneven power supply in Tier 2 towns, interrupt production, incurring Rs. 1-2 lakh per month for SMEs, according to sector discussions.
Low awareness among smaller vendors, cost over sustainability, and lateness by regulators in granting patents (4-6 years compared to China’s 2) hinder innovation. Cost pressures from ASEAN countries with lower production costs worsen the situation.
Experts suggest solutions. Subsidies in the Technology Upgradation Scheme can provide cost offsets. Increasing Skill India’s training in bio-based coatings can fill skill gaps. Enhancing 5G connectivity and power reliability, as scheduled in PM Gati Shakti, will drive production. Public-private partnerships with IITs can expand R&D. CII-promoted campaigns can increase awareness, fuel demand.
India’s packaging sector is being redefined by sustainable, long-lasting coatings, fulfilling regulatory and consumer demands. With a USD 3 billion coatings market expected by 2030, such innovations are at the heart of a more sustainable future.
By overcoming cost, skill, and infrastructure hurdles, Indian businesses can drive the world towards sustainable packaging, optimizing performance with planet-friendly products.