How Restaurants Can Aim for Cost-Effective Sustainable Food Packaging

It's hard to imagine a time before traditional plastics became ubiquitous in single-use food packaging and food-contact applications. It's even harder to envision a future without them using current materials, but that day is approaching, sooner than many might think. As cities and states start to scrutinise their plastic usage and implement new restrictions on items such as bags, cups, lids, stirrers, and straws, biobased and biodegradable products are emerging as viable alternatives for many applications.

The global market for sustainable packaging reached a value of US$ 274.15 billion in 2020 and is forecasted to experience a compound annual growth rate (CAGR) of 6.5 percent from 2023 to 2030. This growth surge is primarily driven by increasing consumer consciousness regarding sustainable packaging and the enforcement of stringent regulations aimed at reducing single-use plastics.

The Indian food and beverage packaging industry is projected to reach US$ 86 billion in 2029 with an annual growth of 14.8 percent, according to Invest India. The industry includes items like containers, cups, tableware, straws, bags, wraps and boxes designed to safeguard or store food. Many restaurants, especially fast-food chains like KFC, McDonald’s, and Burger King, have started pilot programs for eco-friendly containers and are phasing out polystyrene. These efforts are part of a broader move towards biodegradable materials such as sugarcane, bamboo, and seaweed-based packaging. 

“At Recipe Cup, we see the immense potential of bio-based packaging solutions for the food and beverage industry, especially for platforms like ours that champion fresh, home-cooked meals straight from kitchens to doorsteps. Sustainable practices are at the core of our vision, and bio-based materials offer a promising alternative to traditional plastics,” Recipe Cup's-Founder & CEO Rushabh Jhaveri commented.

The Shift from Traditional Plastics to Sustainable Alternatives

In the food service industry, traditional plastics have dominated packaging applications since the 1970s, and for good reason. These thermoplastics are highly effective: they are durable enough to preserve food for extended periods, withstand high temperatures without losing shape, and are both inexpensive and versatile. Traditional plastics have revolutionized packaging, offering lightweight, low-cost solutions that excel at protecting and delivering products.

However, the convenience of traditional plastics comes at a significant environmental cost. The growing accumulation of plastic in oceans, and the presence of microplastics in soil and drinking water, highlight the urgent need for change. We must find innovative solutions to combat plastic pollution while maintaining the efficiency and safety that the food service industry relies on.

Companies like Yash Pakka have spearheaded the sustainable packaging industry in India for a long time now. Yash Pakka collaborates with over 40 commercial partners, including Amazon, KFC, and Google, and has a presence in 43 countries such as the US, the UK, Sweden, Turkey, and Australia. With more than 16,000 shareholders, the company’s signature contribution to the environment is the creation of sustainable packaging using agri-residue, which resembles styrofoam, a type of expanded polystyrene commonly used for food containers. With a mission to make “the world eat safe,” Yash Pakka is developing moulded food serviceware made from sugarcane pulp. This modular design allows them to serve food without delivering a dose of carcinogens and bleach with your meal. “We want to cover food packaging and food services from end to end. As part of that, we’re looking at regenerative partnerships with airlines and food delivery companies. We’ll be replacing their entire equipment and packaging. For aircraft, we’ll be providing a compostable bag that everything can be put into once a flight lands,” Ved Krishna, Strategic Head said in an interview. 

The Environmental Cost of Convenience

A study by the Economist Intelligence Unit (EIU) revealed a 71 percent increase in the popularity of sustainable goods over the past five years. By adopting sustainable packaging practices, businesses can mitigate the risks associated with government regulations and supply chain operations. The packaging industry is increasingly turning to biodegradable products in response to health concerns and the inefficiency of plastic reuse. While green packaging requires an upfront investment, the long-term savings can be substantial. Eco-friendly materials like corn-starch-based PLA and bamboo-based packaging offer significant environmental benefits. PLA supports sustainability by utilizing crops such as corn, while bamboo packaging is 100 percent biodegradable and compostable within two to six months.

Transitioning to sustainable packaging is not just an environmental imperative; it presents a strategic opportunity for businesses to align with consumer demand, anticipate regulatory changes, and achieve long-term cost savings. The future of packaging lies in innovative, eco-friendly materials that protect our planet while ensuring the same high standards of safety and efficiency.

Commitment to Combating Plastic Pollution

“We express our solidarity with the global community in the mission to combat plastic pollution. We understand the urgent need to tackle the plastic pollution crisis and its devastating impact on our ecosystems. With unwavering commitment, we have taken significant strides to minimise single-use plastics in our restaurant - Maayaa and Falcon café, part of Sublime. From eco-friendly packaging to implementing refillable options, we are determined to be a force for positive change. In the heart of our culinary journey, we recognize the pivotal role of sustainable practices and the preservation of nature's delicate balance. From sourcing local and organic ingredients to minimising food waste, we strive to create a harmonious relationship with the environment. Together, we can create a world where sustainability and gastronomic delights thrive in perfect harmony,” Uzma Irfan, Director, Corporate Communications, Prestige Group and Founder, Sublime commented.

Economic Challenges and Cost-Effective Solutions

Conventional plastic packaging materials are significantly cheaper compared to bio-based alternatives. For instance, traditional polyethylene (PE) costs around $1,200 per ton, whereas bioplastics like polylactic acid (PLA) can range from $2,500 to $3,000 per ton. This substantial price difference poses a challenge for widespread adoption, especially for small businesses​ 

Global bioplastics production is expected to more than triple between 2021 and 2026, which could help lower costs through economies of scale. However, this requires significant investments in production infrastructure and technology advancements to improve the properties of bioplastics and make them more competitive with traditional materials​.

“For these solutions to become cost-effective for small players, economies of scale, advancements in production technologies, and supportive regulatory frameworks will be crucial. We anticipate that with continued investment and innovation, cost parity with conventional materials could be achieved within the next 3 to 5 years, enabling broader adoption across the industry,” Irfan further added. 

How Restaurants Can Aim for Cost-Effective Sustainable Food Packaging

It's hard to imagine a time before traditional plastics became ubiquitous in single-use food packaging and food-contact applications. It's even harder to envision a future without them using current materials, but that day is approaching, sooner than many might think. As cities and states start to scrutinise their plastic usage and implement new restrictions on items such as bags, cups, lids, stirrers, and straws, biobased and biodegradable products are emerging as viable alternatives for many applications.

The global market for sustainable packaging reached a value of US$ 274.15 billion in 2020 and is forecasted to experience a compound annual growth rate (CAGR) of 6.5 percent from 2023 to 2030. This growth surge is primarily driven by increasing consumer consciousness regarding sustainable packaging and the enforcement of stringent regulations aimed at reducing single-use plastics.

The Indian food and beverage packaging industry is projected to reach US$ 86 billion in 2029 with an annual growth of 14.8 percent, according to Invest India. The industry includes items like containers, cups, tableware, straws, bags, wraps and boxes designed to safeguard or store food. Many restaurants, especially fast-food chains like KFC, McDonald’s, and Burger King, have started pilot programs for eco-friendly containers and are phasing out polystyrene. These efforts are part of a broader move towards biodegradable materials such as sugarcane, bamboo, and seaweed-based packaging. 

“At Recipe Cup, we see the immense potential of bio-based packaging solutions for the food and beverage industry, especially for platforms like ours that champion fresh, home-cooked meals straight from kitchens to doorsteps. Sustainable practices are at the core of our vision, and bio-based materials offer a promising alternative to traditional plastics,” Recipe Cup's-Founder & CEO Rushabh Jhaveri commented.

The Shift from Traditional Plastics to Sustainable Alternatives

In the food service industry, traditional plastics have dominated packaging applications since the 1970s, and for good reason. These thermoplastics are highly effective: they are durable enough to preserve food for extended periods, withstand high temperatures without losing shape, and are both inexpensive and versatile. Traditional plastics have revolutionized packaging, offering lightweight, low-cost solutions that excel at protecting and delivering products.

However, the convenience of traditional plastics comes at a significant environmental cost. The growing accumulation of plastic in oceans, and the presence of microplastics in soil and drinking water, highlight the urgent need for change. We must find innovative solutions to combat plastic pollution while maintaining the efficiency and safety that the food service industry relies on.

Companies like Yash Pakka have spearheaded the sustainable packaging industry in India for a long time now. Yash Pakka collaborates with over 40 commercial partners, including Amazon, KFC, and Google, and has a presence in 43 countries such as the US, the UK, Sweden, Turkey, and Australia. With more than 16,000 shareholders, the company’s signature contribution to the environment is the creation of sustainable packaging using agri-residue, which resembles styrofoam, a type of expanded polystyrene commonly used for food containers. With a mission to make “the world eat safe,” Yash Pakka is developing moulded food serviceware made from sugarcane pulp. This modular design allows them to serve food without delivering a dose of carcinogens and bleach with your meal. “We want to cover food packaging and food services from end to end. As part of that, we’re looking at regenerative partnerships with airlines and food delivery companies. We’ll be replacing their entire equipment and packaging. For aircraft, we’ll be providing a compostable bag that everything can be put into once a flight lands,” Ved Krishna, Strategic Head said in an interview. 

The Environmental Cost of Convenience

A study by the Economist Intelligence Unit (EIU) revealed a 71 percent increase in the popularity of sustainable goods over the past five years. By adopting sustainable packaging practices, businesses can mitigate the risks associated with government regulations and supply chain operations. The packaging industry is increasingly turning to biodegradable products in response to health concerns and the inefficiency of plastic reuse. While green packaging requires an upfront investment, the long-term savings can be substantial. Eco-friendly materials like corn-starch-based PLA and bamboo-based packaging offer significant environmental benefits. PLA supports sustainability by utilizing crops such as corn, while bamboo packaging is 100 percent biodegradable and compostable within two to six months.

Transitioning to sustainable packaging is not just an environmental imperative; it presents a strategic opportunity for businesses to align with consumer demand, anticipate regulatory changes, and achieve long-term cost savings. The future of packaging lies in innovative, eco-friendly materials that protect our planet while ensuring the same high standards of safety and efficiency.

Commitment to Combating Plastic Pollution

“We express our solidarity with the global community in the mission to combat plastic pollution. We understand the urgent need to tackle the plastic pollution crisis and its devastating impact on our ecosystems. With unwavering commitment, we have taken significant strides to minimise single-use plastics in our restaurant - Maayaa and Falcon café, part of Sublime. From eco-friendly packaging to implementing refillable options, we are determined to be a force for positive change. In the heart of our culinary journey, we recognize the pivotal role of sustainable practices and the preservation of nature's delicate balance. From sourcing local and organic ingredients to minimising food waste, we strive to create a harmonious relationship with the environment. Together, we can create a world where sustainability and gastronomic delights thrive in perfect harmony,” Uzma Irfan, Director, Corporate Communications, Prestige Group and Founder, Sublime commented.

Economic Challenges and Cost-Effective Solutions

Conventional plastic packaging materials are significantly cheaper compared to bio-based alternatives. For instance, traditional polyethylene (PE) costs around $1,200 per ton, whereas bioplastics like polylactic acid (PLA) can range from $2,500 to $3,000 per ton. This substantial price difference poses a challenge for widespread adoption, especially for small businesses​ 

Global bioplastics production is expected to more than triple between 2021 and 2026, which could help lower costs through economies of scale. However, this requires significant investments in production infrastructure and technology advancements to improve the properties of bioplastics and make them more competitive with traditional materials​.

“For these solutions to become cost-effective for small players, economies of scale, advancements in production technologies, and supportive regulatory frameworks will be crucial. We anticipate that with continued investment and innovation, cost parity with conventional materials could be achieved within the next 3 to 5 years, enabling broader adoption across the industry,” Irfan further added. 

On the same lines Jhaveri feels that the cost factor is a significant hurdle, particularly for smaller players. While the technology is constantly evolving, achieving widespread adoption hinges highly on cost-competitiveness. “ I personally believe it's just a matter of time before bio-based materials become a no-brainer for everyone. In my opinion, the following would reduce the cost of bio-based packaging solutions significantly, Economies of scale, Government incentives / subsidies and Consumer awareness,” he added. 

On the same lines Jhaveri feels that the cost factor is a significant hurdle, particularly for smaller players. While the technology is constantly evolving, achieving widespread adoption hinges highly on cost-competitiveness. “ I personally believe it's just a matter of time before bio-based materials become a no-brainer for everyone. In my opinion, the following would reduce the cost of bio-based packaging solutions significantly, Economies of scale, Government incentives / subsidies and Consumer awareness,” he added.