Home / Business and Economy / Recycled PET Shortage Threatens Packaging Goals
Recycled PET Shortage Threatens Packaging Goals
26 Apr
Summary
- Mandatory 40% recycled PET in packaging starts April 1st.
- Industry seeks revised targets due to FG-RPET scarcity.
- Estimated FG-RPET supply is 3.54 lakh tons vs. 6.84 lakh tons needed.
Effective April 1, 2026, beverage companies and brands using rigid plastics, including PET bottles, must incorporate 40% recycled PET (rPET) content in their packaging. This new mandate for FY27 comes with the added challenge of fulfilling any unmet recycled content targets from FY25-26, which required 30% compliance. The industry, represented by PACE, is raising urgent concerns about the inadequate availability of food-grade recycled PET (FG-RPET) to meet these stringent requirements.
According to PACE, the estimated supply of FG-RPET in India is only 3.54 lakh tons. However, to achieve the 40% compliance target for FY27, an estimated 6.84 lakh tons of recycled PET will be necessary. This significant shortfall is exacerbated by the fact that post-consumer PET bottles have traditionally been a primary input for the man-made fiber industry, and FG-RPET is also exported or used in non-food packaging applications.
The PET Packaging Association For Clean Environment (PACE) has formally requested the Environment Ministry to revise the targets in alignment with the actual available quantities of FSSAI-approved FG-RPET. They are also seeking concessions for carrying forward past obligations. Until sufficient FG-RPET becomes available, the industry body urges the government to consider reduced mandatory targets for recycled plastic content in packaging for FY 2026-27.
