India PET Recycling Industry Poised for Major Investment Surge

2024-12-06

India's Polyethylene Terephthalate (PET) recycling industry, which has already attracted ₹10,000 crore in investment over the past three years, is set to double this figure in the near future, driven by growing demand for sustainable packaging and government support, according to industry experts.

Bhadresh Dodhia, Director of the Association of PET Recyclers (BHARAT), highlighted that India leads the world in PET recycling capacity, with an annual capacity of 500,000 tonnes. “India’s PET recycling sector is the largest in the world by capacity, with 95% of PET bottles now being recycled,” he said, underscoring the country’s pivotal role in global sustainability efforts.

The anticipated investment surge is spurred by India’s progressive regulatory environment, including the Plastic Waste Management Rules, which mandate that 30% of plastic packaging must be made from recycled content by 2025. These policies are encouraging more brands to turn to recycled materials, driving the sector's growth.

India’s PET recycling industry is evolving beyond traditional downcycling practices, with a shift towards a circular economy model. The introduction of food-grade approved ARPET granules, which are used to produce 100% recycled PET bottles, marks a significant milestone in this transformation.

“India is on track to lead the global recycling market, thanks to the contributions of 5 million rag pickers and cutting-edge recycling technology,” Dodhia said. “The growth of the industry is not only ensuring a sustainable future for India but also setting an example for the global community.”

India’s plastics recycling market, valued at 9.9 million tonnes in 2023, is projected to reach 23.7 million tonnes by 2032, growing at a compound annual growth rate (CAGR) of 9.86%.

Taher Patrawala, Managing Director of Media Fusion, emphasized that innovation and the adoption of circular economy models by private companies and startups are central to the industry’s progress. “With a strong focus on sustainability, the industry is prioritizing eco-friendly materials and energy-efficient manufacturing processes,” he added.

Matthew Barber, Global Events Director at Crain Communications, praised India’s position as a leader in the global recycling arena. “India’s current plastic recycling rate of 60% is significantly higher than the global average of 9%, positioning the country as a key player in advancing circular economy practices,” Barber concluded.

With continued investment and innovation, India’s PET recycling industry is set to play a critical role in shaping a sustainable future for the global packaging market.