India: Seizure of 18,000 boxes of rPET liquor bottles at Diageo highlights compliance risks for food safety

• Rising recycled content targets for plastic packaging to support demand
• India’s food-contact rPET capacity reaches 439,000 t/year in FY’26 

India’s food-contact recycled polyethylene terephthalate (rPET) market is coming under greater compliance focus after authorities seized around 18,000 boxes of PET liquor bottles at a Diageo facility in Bengaluru on 11 August. Inspectors reportedly found that certain 180-ml bottles lacked the required food-contact rPET marking. Diageo said the bottles were sourced from an FSSAI-approved recycler and had undergone mandatory testing.

The incident highlights how compliance extends beyond rPET quality to marking, documentation, testing, and traceability across the packaging value chain.

rPET market expands

India’s food-contact rPET capacity has expanded rapidly, with APR Bharat estimating around 439,000 t/year across 17 FSSAI-approved plants in 2026. Industry participants estimate around INR 8,000-10,000 crore has been invested in food-grade rPET infrastructure.

Food-grade rPET is currently assessed at INR 113-116/kg, compared with INR 104-108/kg for conventional rPET, giving it a premium of around INR 8-10/kg.

Policy strengthens demand

The recycled-content requirement for Category I rigid plastic packaging has risen to 40% in FY’27, from 30% in FY’26 and is set to reach 50% in FY’28 and 60% from FY’29. PET beverage bottles are a key application.

The rising targets are expected to support structural demand for compliant rPET, although feedstock availability, collection infrastructure and traceability remain constraints.

Compliance becomes differentiator

The Diageo case shows that sourcing rPET from an FSSAI-approved recycler may not be sufficient if downstream packaging fails marking or documentation requirements.

For recyclers, approved processing and traceable feedstock could become stronger commercial differentiators. Converters and brand owners may increasingly prioritise suppliers that can demonstrate regulatory compliance across the full chain.

India’s rPET market is therefore moving towards greater differentiation based on capacity, compliant quality and traceability.