India has evolved as a significant market for non-alcoholic beverages on the back of a sizable consumer base and a structural shift in consumer preferences.

The growth in the sector is attributed to demand-side factors such as favourable demographics, higher disposable income, rising affordability, growing spending on packaged products, and supply-side factors such as innovations in product packaging and size and more importantly, the penetration in the rural areas.

According to the Ministry of Food Processing Industries, India’s non-alcoholic beverages market was valued at $14.95 billion in 2024 and is anticipated to grow with a CAGR of 7.36 per cent till 2030. Estimates claim that India consumes over 250 to 300 million beverage bottles daily.

This includes packaged water, soft drinks, juices, and dairy beverages. Packaged water alone accounts for roughly 70 to 80 million bottles per day, with summers further shooting up the statistics.

In India, recycling of beverage bottles is primarily governed by the Plastic Waste Management (Amendment) Rules 2016 (amended from time to time) under the Environment (Protection) Act, 1986.

These rules place Extended Producer Responsibility (EPR) on producers, importers, and brand owners, making beverage companies responsible for collecting and recycling the plastic bottles they introduce into the market.

We have seen the regulatory landscape fostering the tenets of circular economy and sustainability evolving rather rapidly in the last 5-6 years.

Extended Producer Responsibility (EPR) in India is a mandatory policy framework aimed at Producers, Importers, and Brand Owners (PIBOs) to manage the environmental impact of their products, particularly plastic packaging, e-waste, and batteries, through mandatory recycling and disposal targets. Regulated by the Central Pollution Control Board (CPCB), PIBOs must register on a centralized portal and meet annual waste management targets.

India’s rPET (recycled PET) rule, mandated under the Plastic Waste Management (Amendment) Rules, 2026, makes a strong case for the circular economy by requiring mandatory minimum recycled content in PET products. Key regulations include 40 per cent recycled content in rigid plastic packaging (Category I) starting April 2026, which will step up annually.

Expanding recycling infrastructure

In March 2025, the Food Safety and Standards Authority of India (FSSAI) introduced new legislation permitting the use of rPET plastics in Food Contact Material (FCM) and articles, provided they comply with applicable national standards or regulations.

This was followed by FSSAI issuing detailed guidelines in May 2025 for the acceptance of rPET as FCM to assist the food contact rPET industry by establishing the criteria for the use of these materials in food contact applications.

Additionally, local municipal solid waste and plastic waste bye-laws regulate segregation, collection, and channelisation of used bottles through authorised recyclers. Non-compliance attract punitive action and penalties under environmental statutes.

Companies like Coca-Cola India, demonstrating utmost honesty of purpose towards the circular economy, have introduced bottles made from 100 per cent recycled PET for its brands, such as Kinley, Coca-Cola, among others, which is way above the regulatory requirement. Bottlers are expanding recycling infrastructure and partnering with recyclers to convert used bottles into new ones. Responsible bottlers are setting up reverse vending machines, bottle collection drives, and return-and-recycle programs to encourage and

incentivise consumers to return empty bottles. These machines are strategically placed at high-traffic areas like railway stations, temples, and tourist spots, supporting Government’s flagship initiative Swachh Bharat Mission by offering consumers rewards for recycling. Overall, the sector is moving toward circular economy, where every used bottle becomes raw material for a new one.

Earth Day theme

The theme for Earth Day 2026, “Our Power, Our Planet,” specifically focuses on empowering individuals, organisations and communities to take concrete and tangible steps towards environmental protection. I call upon all stakeholders to transition to clean, renewable energy, and make strategically sustainable business choices at scale to combat climate change.

On the occasion of Earth Day, I am pleased to say that beverage bottling companies are increasingly positioning Extended Producer Responsibility (EPR) as a core pillar of their Sustainability and ESG strategy in line with the Sustainable Development Commitments of India. These initiatives take People and Planet together so that Shared Prosperity follows suit.

The author is a Director at SLMG Beverages Private Limited

Published on April 19, 2026