Packaging innovation and customer-centricity - The Noel D'Cunha Sunday Column

Moderated by Anjana Ghosh, managing director at Scale Sherpas, the discussion featured insights from Sanjay Singal, CEO at Wagh Bakri Tea Group; Bharat Mehta, vice president for PET marketing at Reliance Industries; Vijay Habbu, consultant, plastic industry; Bhadresh Dodhia, director for international trade and finance at Dodhia Group; and Darshan Vartak, head for packaging development and sourcing at Storia Foods and Beverages. The collective expertise highlighted the complexities of packaging innovation, balancing sustainability with functionality, and the critical role of education in shaping consumer perceptions. 

There is no doubt that tea holds a central place in Indian culture and the crucial need to keep packaging affordable. "Consider a daily routine in Delhi," Sanjay Singal, CEO of Wagh Bakri Tea described, "a labourer and his wife start their day by purchasing essentials like milk and tea. They typically buy around half a litre of milk, 20 grams of tea, and some glucose." This level of market penetration demands careful price management, with Singal warning, “If this gap widens, it risks creating a robotic dimension in our industry.” 

The emphasis is therefore on the need for accessible, cost-effective packaging.

Packaging innovation
Reflecting on the late 1980s and early 1990s, Singal noted the challenges in India’s tea market, where limited packaging options like Tetra Pak were expensive and difficult to distribute. "Packaging was very expensive, the shelf life was shorter, and distribution was problematic,” he recalled. The turning point, according to Singal, was Tata Tea’s pioneering of plastic packaging. 

“The introduction of plastic packaging allowed us to distribute products more efficiently,” Singal said, marking a transformative shift that benefited not only logistics but also the consumer experience. “Plastic influenced not just the backend of distribution, but also the consumer’s experience at home,” he added, underscoring its importance for Indian households.

So how did PET become sustainable for transport of products? Bharat Mehta, vice president of PET marketing at Reliance Industries, reflected on the evolution of packaging, recalling the emergence of PET bottles in the late 1970s. "Innovation has transformed the field since PET bottles first appeared in 1979-80," he remarked, noting a significant change in the industry.

One of the notable advances was the development of preforms, which allowed companies to transport compact tubes instead of bulky empty bottles. "Instead of shipping entire glass bottles or cans, we transport a tube, which then expands into a bottle," he explains, which substantially increased industry sustainability.

The evolution of iconic brands is also noteworthy. Reflecting on Campa Cola in the 1990s, Singa mentioned its original round base and the later adoption of the petaloid base, which greatly improved transportation. "Companies like Coca-Cola have become major users of this design," he adds.

He continues by discussing hot-fill bottles, which initially needed special panels and crystallised necks. Now, lighter and more efficient nitro hot-fill bottles have emerged. Another major advancement, he mentions, is the coated bottle, which uses silica to make high-quality beverages more affordable for rural markets, extending product access significantly.

Developments in carbon and silica coatings, he noted, have been crucial for advancing packaging functionality. "These coatings highlight our industry’s commitment to sustainability and product accessibility," he observed.

Material choices and evolving liquid packaging
Vijay Habbu, consultant, plastic industry emphasised the steady progress in liquid packaging innovation, highlighting the importance of material selection and format. As Habbu noted, “Innovation in liquid packaging means taking small steps towards meeting tomorrow's needs today.”

From traditional glass bottles and wooden beer baskets to the incorporation of plastic, packaging choices have evolved considerably. "The choice of format is essential—do you opt for flexible or rigid packaging?" Habbu asked, emphasising the value of single and multi-layered materials in creating versatile packaging options. Size and scale are also critical, with Habbu explaining, “Designing the right size and scale to cater to consumers is crucial for innovation.” 

Bhadresh Dodhia, director for international trade and finance at Dodhia Group, underscored the industry’s shift toward minimalist packaging, noting that “less packaging is better.” Dodhia pointed to recent beverage industry innovations like microfiltration that reduce packaging material while protecting product quality. “The prime objective of packaging remains to protect food quality,” he said. “As long as that is upheld, we're witnessing a clear shift towards minimalism and energy-efficient consumption.”

Dodhia noted how this minimalist trend marks a significant commitment to sustainability, moving beyond aesthetics to a more environmental focus. This shift, he explained, is part of a larger movement within the industry toward responsible, sustainable packaging practices that appeal to eco-conscious consumers.

Darshan Vartak, head of packaging at Storia Foods and Beverages, argued that packaging is a brand’s first and last impression. “The first impression is the last impression,” he said, underscoring the importance of packaging innovation with sustainability in mind. “We need to leverage sustainability, circular economy practices, and recycling to enhance brand value, which will ultimately foster a culture of packaging innovation.”

Although many brands are focused on recycling and sustainable sourcing, Vartak believes that an essential element is often overlooked – design. “We should rethink how we approach the initial stages of packaging design,” he urged, adding, “Real innovation happens when you think critically about the design process from day one.”

Vartak also advocates for clearly communicating sustainable practices directly on packaging. “When brands convey their commitment to sustainability and environmental responsibility, it resonates with consumers. People are increasingly drawn to brands that care about the planet,” he explained, emphasising the value of connecting with a conscientious consumer base.

The power of packaging: Making first and lasting impressions in customer experience

Navigating the plastic dilemma
The growing global population, combined with increasing environmental challenges, has placed plastics under scrutiny, fueling a debate on their role in modern society.

How was the rise of plastics and its role in addressing resource constraints? Mehta pointed out that, "If you look at the world as it was in 1800, the population was just one-million, which was lower than today’s figures for India or China." By 1900, the global population surged to 1.6-billion, marking a significant 60% increase in just a century. Today, we are on the cusp of crossing the 8-billion mark, representing a staggering 800% increase over the past 200 years.

As Mehta explained, this rapid population growth has led to increased pressure on our natural resources. "How do we address the challenges posed by such growth? We must protect Mother Nature," he stated, emphasising the importance of recognising our interconnectedness with the environment. He likened nature to a nurturing mother, asserting that "her love led to the creation of innovations such as plastic, which have helped humanity navigate resource constraints."

Delving into the origins of plastic, Mehta highlights the historical context: "The first oil refinery in the world was established in 1857, coinciding with significant events in India’s history." He noted that this refinery produced various fuels, laying the groundwork for the development of polymers. He elaborated, "From the naphtha leftover in oil refining, we chose to produce something sustainable—plastics," illustrating how necessity drove innovation.

Mehta pointed out the timeline of polymer development, mentioning that "cellulose nitrate emerged in the 1960s, followed by Bakelite in the early 1900s." He continued, sharing that "the 1930s saw the introduction of PVC and polyethylene" and emphasised that post-World War II, there was an explosion in plastic production. "This was a response to the urgent needs of a growing population," he added.

Mehta asserted that "plastics were initially conceived as a sustainable solution to our challenges." As we move toward discourses on super sustainability and circular economies, he stressed on the need to understand plastic's role in history. "This historical perspective is essential for appreciating how plastic came to be, and how it can contribute to sustainability today." 

Habbu addressed the persistent debate surrounding plastic, underscoring the influence of misinformation in shaping consumer perceptions. "Nothing is perfect in life—no material, no job, no house," "We have to choose what’s the least bad option."

Habbu pointed out that consumer perceptions are shaped more by public discourse than by scientific evidence. He noted, “A lot of conversations happen around plastics, often spurred by sensational claims, without a solid grounding in polymer science.” For instance, he explained the misinformation surrounding PET (Polyethylene Terephthalate), which has been wrongly accused of containing BPA (Bisphenol A), a chemical associated with health concerns

The topic of sustainability is another area of confusion. Habbu remarked, “People often conflate sustainability with resource conservation, emissions reduction, and recyclability. What does sustainability truly mean?” He observed how young students might quickly categorise plastics as harmful in projects, which can snowball into widespread opinion shifts across media and governmental platforms. Education, according to Habbu, is crucial for the industry to counteract these misconceptions. “Therefore, it’s essential for consumers to approach these claims with skepticism and not assume that everything shared on platforms like WhatsApp is accurate,” he cautioned.

Habbu argued that the conversation around sustainability is similarly misunderstood. "People often conflate sustainability with resource conservation, emissions reduction, and recyclability," he said, pointing out the need for clear definitions and scientific understanding. 

Singal emphasised the role of brands in countering misinformation about plastic. He pointed to the influence of viral messaging on platforms like WhatsApp, which often exaggerate plastic’s environmental impact, leading consumers to think of plastic as an insurmountable problem. “Consumers often form their own narratives,” Singal observed, noting how misinformation fuels anxiety about plastic pollution.

When considering the environmental impact, Habbu argued that plastic remains one of the best options available, citing research on the ecological footprints of various materials. "When you map the eco footprints, plastic ranks among the best options," he shared, encouraging consumers to explore the comparative impact of alternatives like glass, paper, and metals. He urged for a balanced perspective on plastic, saying, “We must understand these materials in perspective. Plastics still hold significant advantages when compared to other options available.”

On the notion of safety, Habbu emphasised that no material is entirely without risk. “Even water can be hazardous if consumed in excess—risk is a function of hazard and exposure,” he explained. This underscores the need to evaluate plastics and other materials within their proper context.

Singal stressed the importance of combating “greenwashing”—a practice where brands falsely claim environmental responsibility without real action. "The biggest problem today is how brands mislead consumers about their sustainability practices," he said, referencing recent efforts by the Indian government to address greenwashing through regulatory measures. Singal highlighted the importance of educating both consumers and brands about these new regulations and emphasised that while products like milkshakes and juices attract consumer attention, they only represent a small part of plastic’s total use in logistics. “In India, a significant portion of plastic—up to 25%—is used for transporting goods from farmers to end users,” he explained, emphasising the unseen but essential functions plastic serves.

As an example of effective sustainability practices, Singal shared Wagh Bakri’s commitment to resource efficiency, which includes sourcing 60 million tons of tea globally and reducing plastic use by two to three lakh kilograms through streamlined operations and material reuse. “By addressing the entire value chain rather than isolated segments, we can create effective solutions to the plastic problem,” he concluded, underscoring the impact of a holistic approach.

Strengthening regulatory standards
Habbu highlighted government actions, such as India’s Plastic Waste Management Rules of 2016, focused on managing litter. Yet, challenges remain, as individual states within India implement additional regulations, sometimes leading to industry confusion. Extended producer responsibility (EPR) is a key focus of these regulations, assigning recycling responsibilities to manufacturers, brand owners, and plastic converters to encourage waste management. Habbu noted that the Bureau of Indian Standards (BIS) will soon require recycled plastics in food packaging, a shift indicating major progress. “The standards are finalised within the next couple of months,” he noted, with agencies like FSSAI introducing measures to ensure consumer safety through migration limits on harmful chemicals.

At the international level, Habbu discussed the Global Plastics Treaty, a landmark framework currently being negotiated, with a final round of talks scheduled in Busan, South Korea. "Governments are in discussions, with the final negotiations set to take place in November," he said, underscoring the treaty’s aim to implement binding measures that include restrictions on hazardous chemicals.

Habbu called for collaboration within the industry, stressing the importance of re-evaluating chemicals in plastic products. "It is essential for the plastic and beverage sectors to come together and evaluate the chemicals they use, as many may soon face restrictions," he explained. This shift, he argued, is essential to balancing consumer and environmental safety with innovation.

Rethinking plastic: Recycling, consumer education
Dodhia, a recycling advocate, underscored the vital role of recycling in addressing plastic waste, calling it “a necessity rather than a luxury.” Dodhia pointed to EPR, a framework that mandates compliance in managing plastic waste. Highlighting recent regulations requiring recycled PET in packaging, he remarked, “We are at a point where there is no debate about the effectiveness of our plastic collection system.”

Dodhia explained that India has become the world’s largest collector of PET waste, with a collection rate of over 90%, outpacing even some advanced economies. This success, he suggested, is partly due to India’s well-developed systems for collecting and processing plastic. “India is in a uniquely advantageous position,” he said, commending the oversight of agencies like FSSAI and EPCA, which ensure that recycled plastics meet stringent safety standards.

Looking forward, Dodhia emphasised the potential for multi-polymer use in packaging, although he noted that this shift could complicate recycling efforts. Despite challenges, Dodhia remains optimistic. “The recycling story today is visible for everyone to see.” His outlook points to a promising future, with continued innovations and improvements expected in India’s recycling landscape.

While recycling infrastructure plays a key role, Vartak stressed the impact of consumer behaviour on waste management. He highlighted the need for responsible disposal practices, explaining that “littering and improper disposal practices greatly hinder the effectiveness of recycling efforts.”

Vartak emphasised the importance of improving waste collection and segregation. “Currently, waste collection systems are inadequate,” he observed, noting that a single truck often collects both dry and wet waste, mixing them and complicating recycling efforts. To optimise recycling, he suggested a structured approach with designated collection days for dry and wet waste.

He also urged brands to actively promote responsible waste practices, saying, “Companies can help by informing consumers about how their packaging is disposed of after use.” Additionally, he recommended that government-run campaigns raise awareness of proper waste management. 

According to Vartak, “Alignment between consumer behaviour, brand messaging, and government initiatives is critical to resolving these issues.” He believes that collective action from brands, consumers, and governments is essential for lasting change.