September 26, 2024
(press release)
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India’s foodservice operators are increasingly responding to rising consumer demand for eco-friendly practices and addressing the sector’s environmental impact. Many are transitioning to greener alternatives, such as minimizing plastic use and adopting sustainable sourcing. These initiatives reflect a commitment to balancing business growth with ecological responsibility, highlighting the industry’s commitment to environmental sustainability, says GlobalData, a leading data and analytics company. Biswarup Bose, Lead Consumer Analyst at GlobalData, comments: “One of the most visible eco-friendly shifts in the Indian foodservice industry has been the reduction in single-use plastics. With government mandates and consumer advocacy encouraging the move, many restaurants and food delivery platforms have replaced plastic packaging with biodegradable and compostable materials. For instance, foodservice operators such as Chai Point and Pot Pot have adopted eco-friendly packaging solutions. A GlobalData 2024 Q2 Consumer Survey* corroborates this trend, where 59% of respondents in India stated that their product purchasing decisions for food and drinks are either always or often influenced by how ethical/environmentally friendly/socially responsible the product/service is*.” Francis Gabriel Godad, Consumer Business Development Manager, GlobalData India, adds: “Foodservice operators are increasingly opting for locally sourced, organic, and seasonal ingredients. By reducing reliance on imported goods and focusing on farm-to-table practices, restaurants not only support local farmers but also cut down on the carbon footprint associated with long-distance transportation. Underlining this trend, 77% of Indian respondents in a recent GlobalData consumer survey strongly or somewhat agreed that they stop buying products from a brand if their supply chain is not sustainable/ethical*.” Bose continues: “The shift towards eco-friendly practices is largely consumer-driven, with growing demand for sustainable options influencing foodservice businesses. Customers, particularly younger generations, are more aware of environmental issues and are choosing operators that reflect their values. This trend demonstrates how businesses are adapting to maintain relevance and customer loyalty. With food delivery on the rise, operators are switching to greener delivery options, such as electric bikes or scooters, and using reusable or compostable packaging. Platforms such as Zomato and Swiggy have also integrated “no plastic cutlery” options to further reduce waste.” Godad concludes: “Government policies, such as the ban on single-use plastics, are accelerating the adoption of sustainable practices. Compliance with regulations is not only necessary but also presents opportunities for operators to innovate and differentiate themselves. While many operators are adopting eco-friendly measures, scalability remains a challenge, particularly for smaller operators with limited resources. High costs associated with certain sustainable materials and technologies can be a barrier, suggesting a need for greater investment, subsidies, or incentives to support wider adoption of green practices across the industry.” *GlobalData 2024 Q2 Consumer Survey – India, was conducted with 897 respondents
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