Introduction India's Bagasse Industry: Key Updates
As of April 2025, India’s bagasse industry is experiencing significant growth, driven by environmental concerns, supportive government policies, and increasing consumer demand for sustainable alternatives. Here’s an overview of the latest developments.
Market Growth and Projections:
- Biodegradable Disposable Tableware: India’s sugarcane bagasse biodegradable disposable tableware market was valued at USD 161.37 million in 2021 and is projected to reach USD 359.84 million by 2030, growing at a CAGR of 9.45%. This growth is attributed to rising environmental awareness and government restrictions on single-use plastics.
- Sugarcane-Based Packaging: The Indian sugarcane-based packaging market generated USD 39.1 million in 2024 and is expected to reach USD 70.3 million by 2030, with a CAGR of 10.3%. Bagasse-based materials were the largest revenue-generating segment in 2024.
Government Policies and Legal Developments
- Jute Packaging Mandate: The Indian government is enforcing a 1987 law requiring sugar mills to package 20% of their supplies in jute bags to support the traditional jute industry. However, sugar producers are challenging this mandate, citing increased costs and concerns over contamination risks. The High Court in Karnataka is set to hear final arguments, with a ruling expected soon.
Consumer Trends and Industry Adoption
- Commercial Use Dominance: The commercial sector, including hotels, cafes, and restaurants, accounted for 63.86% of the bagasse tableware market in 2021 and is anticipated to generate USD 221.22 million by 2030.
- Regional Insights: North India held the largest market share at 33.72% in 2021, driven by high sugarcane production in states like Uttar Pradesh and stringent government policies against single-use plastics.
India’s bagasse industry is dignified for continued growth, supported by favorable market dynamics and increasing environmental consciousness.
