Decarbonising India’s beverage supply chain

The transition toward a circular economy in the Indian beverage sector is no longer a peripheral corporate social responsibility concern but a core driver of business resilience. As the industry grapples with complex supply chains and cost pressures, leaders from across the ecosystem identify hidden emission pockets and the shift from "paper-based" goals to ground-level execution.

Identifying the hidden carbon load
While packaging often dominates the sustainability narrative, substantial emissions reside in less visible segments of the value chain. Amar Shrivastava, co-founder of Orrchid Brews, identifies refrigeration as a primary, yet underestimated, contributor to the carbon footprint. For some companies, cooling and fermentation account for 50% of total costs. Shrivastava highlights the impact of refrigerant leakages, noting that while carbon dioxide has a calibration value of one, R22 gas possesses an emission value of 1,830, making leak detection critical for climate goals.

Beyond cooling, the weight of packaging material directly dictates transportation emissions. A standard 330-ml beer bottle weighs approximately 250 g, meaning one litre of product requires 750 g of glass. This high packaging-to-product ratio increases fuel consumption during both initial delivery and reverse logistics for recycling. To mitigate this, Shrivastava suggests the use of stainless steel kegs in 20-, 30-, or 50-litre capacities as an effective method to reduce packaging waste and transportation intensity.

The infrastructure gap in circularity
The beverage industry faces a significant disparity between the recyclability of materials and the actual recovery rates in remote geographies. Vidya Bhooshan, regional CSR head for North India at Bisleri International, explains that while PET is considered "gold" in the recycling industry due to its high value, the economics of collection often fail in rural or hilly areas. High reverse-logistics costs frequently prevent scrap dealers from transporting low-value plastics to urban processing centres. Bhooshan advocates for decentralised recycling infrastructure within a 100-km to 200-km radius of consumption points to bridge this gap.

Regulatory mandates are currently driving the adoption of recycled content. Indian brands are now required to incorporate 30% recycled material in packaging, a figure set to rise to 40%. Vinay Henry, senior manager of sustainability for India and Southwest Asia at The Coca Cola Company, reports that approximately 3.5-lakh tonnes of food-grade recycling infrastructure is currently ready for commercialisation in India, with expectations to reach 6-lakh tonnes by the first quarter of 2027. However, the primary challenge remains the informal and fragmented nature of the collection ecosystem, which currently directs 80% to 85% of collected PET toward the textile industry rather than back into bottle-to-bottle loops.

Building sustainability into the business model
For sustainability to become a competitive advantage, it must be "inbuilt" rather than treated as an add-on expense. Manish Parmar, vice president of supply chain at Country Delight, argues that localising procurement can drastically reduce Scope 3 emissions. By limiting the sourcing radius to 50–150 km from processing plants—compared to the industry standard of 500–800 km—the company avoids approximately 5,000 metric tonnes of CO2 emissions annually.

Operational timing also plays a role in emission reduction. Delivering products between 05:00 and 07:00 allows vehicles to avoid traffic congestion, increasing two-wheeler fuel efficiency from 35–37 km/l to 45–50 km/l. Parmar notes that these efficiencies, combined with internal "Kaizen" programmes for water and energy reduction, have helped the business lower resource consumption by 15% to 20%.

Consumer psychology and the premium trap
A common industry concern is the cost-sensitivity of the Indian market, yet data suggests a shift in consumer willingness to pay for sustainable brands. A survey cited by Shrivastava indicates that 73% of Indian consumers are willing to pay a "little premium" for sustainability, provided the brand delivers clear value. However, the panellists agree that consumers should not be charged for a company's operational inefficiencies.

The industry is also evolving its social footprint by focusing on stakeholder welfare as a "performance multiplier". This includes offering 3% to 6% price premiums to farmers for "gold standard" raw materials and increasing diversity within the supply chain. At Country Delight, women’s representation in the supply chain coordination function has reached 50%, while the employment of persons with disabilities has grown to include over 30 individuals in the past year.

Key Focus Areas for Decarbonisation:
Refrigeration: Transitioning from R22/R134a to hydrocarbon-based, HFC-free cooling systems.
Packaging: Lightweighting glass and PET while increasing the use of 20-litre refillable containers.
Logistics: Optimising route planning and adopting EVs for "last-mile" urban delivery.
Sourcing: Implementing drip irrigation and high-density cultivation programmes for ingredients like sugar and mango.
Waste Management: Developing decentralised collection hubs to support the 40% recycled-content mandate.