Sustainable Packaging Start-ups: Assessing Their Profile

With a growing problem of environmental degradation and increasing concern over the same, the Indian government is looking for alternatives to tackle the situation. In this regard, start-ups functioning in the area of ecological sustainability provide solutions to environmental problems. In this chapter, the author assesses the profile of sustainable packaging start-ups, examining their investment profile, business models, and challenges. The author also sheds light on the regulatory landscape concerning sustainable packaging. This chapter finds that investment in this sector has hugely increased with a massive CAGR of 129% between 2015 and 2020 (Tracxn, 2021). India holds 11% of these start-ups in the world, attracting 0.18% of the total investment (Tracxn, 2021). The US tops the list in the number of companies established and investments. Such companies follow very diverse business models. They provide recyclability testing tools to examine the extent to which packaging materials can be recycled. Companies develop bacteria which can decompose plastic packaging. They use different materials to produce sustainable packaging products, such as palm leaves, bagasse, seaweed, plant protein, vegetable starch, and composites. Hiring and retaining the right kind of talent and funding are the prominent challenges faced by this sector. Except for EPR (Extended Producer Responsibility), start-ups in our sample survey are found not to comply with any other regulations. Nonetheless, for more credibility, these packaging start-ups need proper certification.