2 days ago
India’s Sustainable Packaging Startups Shift Toward Commercial Scale
India has many startups trying to make packaging less harmful to the environment.
Some companies recycle used plastic instead of throwing it away.
Others make packaging from plants that can compost or break down.
A third group creates special films that help products last longer.
Investment in these startups grew quickly until 2023, but it has fallen since then.
This does not necessarily mean investors have lost interest; they may be making smaller and more careful investments.
The biggest challenge is that greener packaging can cost more or require new supply chains.
Companies will need to prove that their products work, remain affordable and can be made in large quantities.
Large businesses and government rules could help the industry grow.
India has 174 sustainable packaging startups, but new launches fell from 14 in 2020 to two in 2025 and one in 2026 so far.
Investment rose to $67 million in 2023 before declining to $14 million in 2024, $12 million in 2025 and $2 million in 2026 year-to-date.
Lucro uses 30–100% recycled household waste and says its recycled plastic products can cost about the same as virgin plastic.
Peelon makes compostable plant-based films, while Boston Polymers develops specialised biodegradable films with applications including fodder preservation.
Industry leaders say cost, procurement practices, supply, manufacturing capacity and stronger enforcement of extended producer responsibility will shape adoption.
- Who
- India’s sustainable packaging startups, investors, packaging buyers and companies including Lucro, Peelon and Boston Polymers.
- What
- The sustainable packaging sector is moving from experimentation toward consolidation and commercialisation, while startups pursue recycling, compostable materials and specialised biodegradable films.
- Where
- India, including manufacturing operations in Visakhapatnam.
- When
- The article was published on August 31, 2026; investment and startup-launch figures cover 2020 through 2026 year-to-date.
- Why
- Companies are seeking alternatives to conventional plastic, but adoption depends on cost, performance, procurement decisions, supply, infrastructure and regulation.
Plastic Replacement
Plastic Circulation
Core strategy
Plastic Replacement
Peelon seeks to replace conventional plastics with compostable films made from plant-based feedstock such as sugarcane and corn derivatives.
Plastic Circulation
Lucro seeks to keep plastic in circulation by converting discarded household plastic into recycled granules and packaging material.
Cost and adoption
Plastic Replacement
Peelon says its resin costs 85–130% more than conventional LDPE, but argues that total supply-chain costs can be 35–40% lower; Boston Polymers says some fully degradable materials cost nearly twice as much.
Plastic Circulation
Lucro says its recycled plastic can cost about the same as virgin plastic, although pricing varies with requirements such as colour and consistency.
What drives wider use
Plastic Replacement
Replacement-focused companies argue that functional benefits, reduced packaging consumption and stronger sustainability commitments can support adoption despite higher material prices.
Plastic Circulation
Recycling-focused companies depend on reliable supplies of waste, recycling infrastructure and large-scale procurement by sectors such as FMCG, food and beverage, automotive and e-commerce.
Key facts
- Number of startups
- 174 sustainable packaging startups currently operate in India, according to Tracxn.
- Startup launches
- Packaging startup launches fell from 14 in 2020 to two in 2025 and one in 2026 so far.
- Investment peak
- Investment reached $67 million in 2023 after rising from $151,000 in 2020.
- Recent investment
- Investment declined to $14 million in 2024, $12 million in 2025 and $2 million in 2026 year-to-date.
- Lucro materials
- Lucro uses 30–100% recycled household waste in its products and tracks materials from collection to dispatch.
- Peelon capacity
- Peelon’s Visakhapatnam facility has annual capacity of about 1,000 tonnes and targets 15,000–18,000 tonnes by 2028.
- Boston Polymers capacity
- Boston Polymers has annual capacity of 2,000 tonnes and plans to expand to 4,500 tonnes.
Quotes
Taraka Ramji
Founder and CEO of Peelon
“We have 100 per cent traceability. It is an internally built software— in fact, by the CFO — that tracks the material from the point of collection to the final despatch of goods”
thehindubusinessline.com
“When you account for the total cost of ownership... Peelon delivers 35–40 per cent lower cost to the supply chain, versus conventional LDPE”
thehindubusinessline.com
Sources
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