India’s foodservice sector embraces sustainability

• Initiatives aims at minimising plastic use and adopting sustainable sourcing practices have emerged as significant trends
• GlobalData survey shows that 77% of respondents are inclined to cease purchasing from brands that do not maintain sustainable or ethical supply chains.
• Government policies, such as the ban on single-use plastics, are catalysing the industry’s adoption of sustainable practices.

India’s foodservice sector has witnessed a notable shift towards eco-friendly practices, driven by rising consumer demand and a growing awareness of environmental issues.

Operators within this industry are increasingly prioritising sustainability, illustrating a commitment to balancing business growth with ecological responsibility.

Notably, initiatives aimed at minimising plastic use and adopting sustainable sourcing practices have emerged as significant trends, reflecting an evolving landscape in foodservice operations.

Biswarup Bose, Lead Cosnumer Analyst at GlobalData, said the reduction of single-use plastics stands out as one of the most visible advancements in the Indian foodservice industry.

Consumer advocacy

“Government mandates, combined with consumer advocacy, have prompted many restaurants and food delivery platforms to replace conventional plastic packaging with biodegradable and compostable alternatives.”

Establishments like Chai Point and Pot Pot exemplify this transition, effectively aligning their operations with consumer values. A recent GlobalData survey reinforces this trend, revealing that 59 per cent of respondents in India consider ethical and environmentally friendly practices when making purchasing decisions regarding food and beverages.

Moreover, Francis Gabriel Godad, Consumer Business Development Manager, GlobalData India, said that foodservice operators are increasingly embracing locally sourced, organic, and seasonal ingredients. “The approach not only reduces reliance on imported goods but also supports local farmers and mitigates the carbon footprint associated with long-distance transportation.”

Greener delivery options

A significant finding from GlobalData indicates that 77 per cent of respondents are inclined to cease purchasing from brands that do not maintain sustainable or ethical supply chains.

Bose said the consumer-driven momentum underscores the importance of environmental sustainability in fostering brand loyalty and relevance, particularly among younger generations who prioritise ethical consumption.

The trend towards sustainability is further bolstered by the growing adoption of greener delivery options and packaging solutions.

As food delivery services surge, operators are transitioning to electric bikes and scooters, alongside employing reusable or compostable materials for packaging.

Platforms like Zomato and Swiggy have already integrated options to eliminate plastic cutlery, contributing to waste reduction efforts.

Godad said that government policies, such as the ban on single-use plastics, are catalysing the industry’s adoption of sustainable practices.

“Compliance not only addresses regulatory requirements but also offers opportunities for operators to innovate and distinguish themselves in a competitive market. However, challenges persist, especially for smaller operators facing resource constraints and high costs associated with sustainable materials and technologies.”

To facilitate broader adoption of eco-friendly practices, he said there is a pressing need for increased investment, subsidies, or incentives within the industry.