FSSAI's plastic-free push for pan masala: What it means for the industry

The regulator's draft to replace plastic with eco-friendly materials may impact pricing, scalability, and the widespread sachet-driven consumption system of pan masala companies

  The Food Safety and Standards Authority of India has proposed a shift away from plastic packaging for pan masala (chewable tobacco) sachets. While the government’s move aims to tackle single-use plastic waste, it also raises questions about viability for an industry built on a small-pack consumption model.

 

What the draft proposal says

 

The FSSAI draft proposal seeks to eliminate the use of plastic, including multi-layer laminates and metallised films, in pan masala packaging. Instead, it encourages a transition towards paper-based, cellulose, or other eco-friendly materials.

 

The regulator’s intent is two-fold:

 

• It aims to reduce the environmental burden caused by single-use plastic sachets
• It also pushes manufacturers to adopt more sustainable alternatives that are easier to recycle or dispose of

 

The draft indicates a consultative approach, with industry stakeholders expected to weigh in on feasibility, timelines, and material innovation.

   

What it means for the tobacco industry

 

For manufacturers, this proposal is more than just a material swap, as packaging is central to both product quality and pricing.

 

“The proposed move towards plastic-free packaging for products such as pan masala represents a significant shift from a materials and packaging technology standpoint, particularly given the moisture-sensitive nature of such products,” says Ankur Gupta, managing director at Bharat PET Limited, which specialises in rigid plastic packaging.

 

Currently, plastic laminates dominate because they offer durability at low cost and support the small sachet format that drives mass consumption of tobacco across urban and rural India. If alternatives cost more, companies may have to either absorb the increase or pass it on to consumers, which could affect demand.

 

The challenge of replacing plastic sachets

 

From a technical perspective, replacing plastic is not straightforward, as tobacco is highly sensitive to moisture and air exposure.

 

Gupta explains, “Flexible plastic laminates currently used in sachets offer a unique combination of moisture barrier, product stability, seal integrity, and cost efficiency. Replicating these properties using paper or cellulose-based alternatives remains a key challenge.”

 

While paper-based solutions are evolving, they still struggle to match the barrier performance required for a long shelf life, especially without polymer coatings. As a result, manufacturers may face compromises in product quality or shelf stability unless new materials mature quickly.

 

Cost pressures and scalability concerns

 

The shift is also expected to have cost implications. “Transitioning to alternative materials is likely to result in higher packaging costs due to limited scale, higher raw material costs, and potential investments in new converting technologies,” Gupta notes.

 

Currently, plastic laminates benefit from well-established supply chains and economies of scale, while alternatives have yet to reach that level of efficiency. In addition, scaling up eco-friendly materials for India’s vast sachet market will take time.

 

Gupta adds that coated paper, bio-based films, and recyclable mono-materials are being developed. However, their deployment at scale must address consistency, food safety compliance, and compatibility with high-speed packaging lines.

 

Impact on the wider packaging ecosystem

 

The implications extend beyond manufacturers, as the packaging value chain is built around lightweight plastic formats.

 

A shift away from plastics will affect converters, raw material suppliers, and logistics systems, and may require new infrastructure and investments. Informal retail networks, which rely heavily on low-cost sachets, could also feel the ripple effects if pricing or availability changes.

 

Can packaging changes reduce tobacco consumption?

 

Although the proposal is framed around sustainability, it could also align with the government's broader efforts to discourage tobacco and related products.

 

India has already introduced measures such as graphic health warnings, higher taxes, and restrictions on advertising, and packaging changes could act as an indirect lever. If costs rise and convenience declines, consumption patterns may gradually shift.

 

However, experts point out that regulatory nudges like packaging changes tend to work best alongside taxation and awareness campaigns, rather than as standalone interventions.

 

The road ahead

 

For now, the industry appears cautious but engaged. As Gupta sums up, “A balanced transition supported by material innovation, infrastructure readiness, and economic viability will be critical to ensure both environmental objectives and product integrity are maintained.”