India’s r-PET Industry Struggles Despite 40% Recycled Content Mandate

New Delhi : India’s recycled PET (r-PET) industry continues to face severe under-utilisation despite the Government’s push for import substitution and mandatory use of recycled plastic in packaging.

According to Goutham Jain of APR Bharat, nearly 20–25% of the country’s r-PET capacity remains idle due to weak demand from plastic packaging brands and bottling companies. The industry has already created around 4.39 lakh tonnes of capacity with investments exceeding ₹10,000 crore.

The Ministry of Environment, Forest and Climate Change (MoEFCC) has mandated 40% recycled content in food-grade PET packaging from FY 2026–27. Companies must also carry forward any unfulfilled FY 2025–26 recycled-content targets.

Jain said India already has sufficient infrastructure to meet the mandate, with 17 FSSAI-approved food-grade r-PET plants currently operational. Industry capacity is also expected to expand to nearly 12.26 lakh tonnes by March 2027, preparing for the proposed 60% recycled-content target by 2028–29.

APR Bharat warned that delays in adopting the mandate by brands could weaken India’s circular economy ambitions, increase dependence on imported virgin petrochemicals, and undermine commitments to reduce plastic pollution.

The organisation urged plastic packaging users and beverage companies to comply with the regulations, stating that the technology, investment, and production capacity are already in place.

The industry also highlighted the social impact of the sector, noting that a large part of PET waste collection is handled by the informal sector, whose livelihoods depend heavily on plastic recycling and waste collection activities.