The problem with plastic

The global impact of plastic waste and India's urgent crisis

There is no escaping that plastic waste is a significant global environmental problem. Its myriad of uses have made it ever-present, and its properties have made it an indispensable part of our everyday world. However, with this comes the monumental escalation of plastic pollution globally, presenting profound ecological, social, and economic challenges.

The numbers speak for themselves. Globally, we generate over 350 million tonnes of plastic waste every year, with 40% coming from packaging, including single-use products for food and beverages. Alarmingly, only 9% of global plastic waste is recycled. 50% end up in landfill, 19% is incinerated and 22% is mismanaged meaning it evades waste management systems all together. Plastic waste is contributing to widespread pollution found in every major ocean basin, with an estimated 30 million tonnes of plastic waste in seas and oceans, and 109 million tonnes accumulating in rivers.¹

Over the past 30 years plastic consumption has quadrupled, driven by growth in emerging markets. India faces a particularly severe crisis, where around 15 million tonnes of plastic waste is produced every year.² Over the last five years, the amount of plastic waste produced in India has doubled, and the country struggles with significant plastic leakage into the environment. The Ganges and the Indus are two of the ten rivers in the world that together contribute 90% of plastics that reach the ocean, emphasising the urgent need for action.³

^{Discover the problem with India's flexible packaging.}

The problem with India's flexible packaging

Examining India's plastic problem closely unveils a significant challenge related to the high demand for a specific type of plastic. The Fast Moving Consumer Goods (FMCG) sector in India, which consists of products bought often, used quickly, and sold in large volumes at low prices, has been consistently growing. The rising consumption of FMCG goods has resulted in a sharp increase in the use of plastic packaging and the consequent surge in plastic waste.

Similar to other regions globally, plastic packaging waste in India can be broadly classified into two primary categories: rigid packaging and films, and flexible packaging. Flexible packaging is particularly prevalent in India due to its cost-effectiveness and versatility. Flexible packaging covers plastic bags, wraps, sachets and pouches that can be printed and decorated to a high quality while providing protection and convenience.

It is commonly used for small-format packaging, making it affordable for consumers, especially those with lower incomes. For instance, a single-use 10ml sachet of shampoo is a typical example of flexible packaging in India.

Recycling plastic packaging in India has made significant progress, especially with polyethylene terephthalate (PET) bottle recycling. However, recycling flexible packaging, such as multi-layer packaging (MLP), presents a major challenge. MLP, which consists of multiple layers of materials, is difficult to separate by type, making the recycling process complex and economically unfeasible.

The non-recyclable nature of MLP presents a significant environmental challenge for India, particularly given that approximately 70% of all plastic packaging in Indian consumer goods is in the form of flexible packaging.⁴

Lorna Logan, Portfolio Manager, discusses the problem around plastics and plastic pollution at the Stewart Investors Investment Forum 2023