Pack.Nxt calls for overhaul in infrastructure to achieve circularity

Panellists across six discussions, united under the theme “from theory to practice": Circular economy in packaging, outlined the critical gaps and bold steps required to move from compliance on paper to circularity in practice. Industry leaders were in agreement that "a lot more" needs to be done.

The most immediate need identified was addressing the fragmented waste management system. Two prominent themes which emerged were decentralised sorting. Many packaging development experts stressed the need for robust sorting, composting, and recycling mechanisms at the grassroots level, advocating for concepts like kerbside sorting and corporate take-back programs to channel segregated waste into the recycling stream. 

Another theme which resonated was how the industry must move beyond theoretical research and strengthen collaboration with academia and startups to solve complex, practical challenges, particularly those related to processing difficult-to-recycle materials.

To drive smart packaging adoption beyond the current 7-12% growth projection, the industry must fundamentally change its approach. A few things which resonated was having a "Pull, Not Push" strategy. In real terms this means, smart technologies must offer clear, meaningful, and immediate value to the consumer—be it in product safety, anti-counterfeiting assurance, or monetary loyalty points. Simply adding a feature is not enough.

Also digital accessibility is a must. Innovation is needed to overcome the digital literacy gap, particularly in rural India. A key suggestion was the development of wireless-enabled QR codes that can elaborate on product information and disposal instructions in a consumer's regional language.

Panellists urged a complete shift in the procurement and design philosophy. This should translate into ROI in efficiency. Companies must view investments in sustainable packaging, AI, and automation as a long-term (five-year) commitment, with the primary ROI measured in operational efficiency and product integrity, rather than immediate savings on material thickness (GSM). 

Similarly, there should be a measurement of sustainable as a minimum standard. And so, packaging design must prioritise the product's safety and life cycle, with the willingness to justify the increased cost of high-quality, sustainable materials—a necessity to avoid compromise that can lead to catastrophic failures.

The total cost of ownership (TCO) has to be understood by packaging creators. When assessing sustainable alternatives like PCR, companies must factor in indirect benefits, such as the potential waiver on EPR credits, to offset the higher upfront material cost.

The biggest single hurdle remains the vast, unorganized segment of the Indian packaging industry. Speaker after speaker stressed on mass-scale education. This means, urgent, targeted programs are needed to educate the 80-85% of unorganised small and medium enterprises (SMEs) on essential standards, including the correct interpretation of regulations, the significance of material chemistry (example; pH of inks and adhesives), and the technical requirements for food contact safety.

And finally, there was emphasis on compliance as an asset: Regulators and industry must collaborate to simplify standards and enforce compliance, recognizing that the burden and responsibility are now undeniably shifting from the supplier to the brand owner. The goal is to mature the entire ecosystem to ensure that every component of the package meets required standards from "cradle-to-consumption."

Final thoughts?

Scaling India's circular packaging demands immediate action. Pack.Nxt is the sixth conference in the past two months which I have attended which has been discussing circular economy. The speakers may vary but the themes remain the same: building decentralised sorting and recycling infrastructure, shifting to value-driven smart packaging that consumers "pull", prioritising long-term ROI in efficiency over short-term cost, and launching mass-scale education for unorganised industries to raise compliance to a minimum standard.