The Sachet Is India's Hardest Plastic to Recycle. A Fifth of the Country's Plastic Waste, and Almost No One Pays for It.
Multi-layered plastic, the foil-lined sachets and pouches that hold shampoo, ketchup, gutka and milk powder, is about 21% of India's plastic waste by the government's own composition data, yet it is the one stream the scrap market barely touches. A collector earns almost nothing for it, because the layers cannot be cleanly separated and the money recovered hardly covers the cost of picking, moving and sorting it. A fresh survey shows the squeeze: Indians say they would pay more for sustainable packaging, the most willing of any country, but at the shop the cheapest sachet still wins. What is changing is not the scrap value. It is who pays, and the answer, increasingly, is the brand, through EPR.
Pick up any used PET bottle and a recycler will buy it, more so now that food-grade plants are competing for clean bottles. Pick up a used shampoo sachet and almost no one will. That gap, between the bottle and the sachet, is the real divide in India's plastic economy, and it decides what millions of small collectors actually earn.
On 20 October 2026, a trade report put a fresh number on an old problem: India's sachet shoppers say they want recycled plastic, but price still rules the purchase. It sits on top of a survey finding that looks encouraging and is not. In its 2025 packaging survey of more than 11,000 consumers across 11 countries, McKinsey found India led every country it polled: 36% of Indian consumers said they would pay much more for greener packaging, and another 49% said a little more. Yet the firm's own caution is the catch: stated willingness is not actual behaviour, and the number ready to pay much more has stayed small across its 2020, 2023 and 2025 rounds. The sachet exists precisely because it is the cheapest way to sell a small quantity to a price-sensitive buyer. Willingness to pay evaporates at the shelf.
So the material that is hardest to recycle is also the one whose whole purpose is to be cheap. That is the sachet trap.
The numbers at a glance
| Indicator | Figure |
|---|---|
| MLP share of India's plastic waste (CPCB composition) | 20.87% |
| India's plastic waste generation, 2022-23 (CPCB) | About 41.4 lakh tonnes |
| MLP generated a year, on those figures | About 8.6 lakh tonnes |
| Largest categories by weight | PE 37.6%, MLP 20.87%, PP 14.66%, PET 13.16% |
| Recycled-content rule, MLP (Category III) | 5% in 2025-26, rising to 10% by 2027-28 |
| Recycling target, MLP (Category III) | 30% in 2024-25, rising to 60% by 2027-28 |
| Indians ready to pay much more for sustainable packaging | 36%, highest globally (McKinsey 2025) |
(The 8.6 lakh tonne figure is our own estimate, applying the 20.87% MLP share to 2022-23 plastic waste generation. "MLP" is multi-layered plastic: packaging with at least one plastic layer and at least one non-plastic layer, such as foil or paper.)
Why a sachet is worth almost nothing
A PET bottle is one material. Wash it, flake it, and you have a sellable product. A foil-lined sachet is the opposite. It is built from thin layers of plastic bonded to aluminium or paper, chosen to keep air and moisture out of the contents. The very design that protects a ₹1 shampoo dose is what makes the packet almost impossible to recycle, because the layers cannot be cleanly pulled apart into saleable streams.
By the Central Pollution Control Board's own composition data, multi-layered plastic (MLP) is 20.87% of India's plastic waste, the second-largest slice after ordinary polyethylene. Set against the government's reported plastic waste generation of about 41.4 lakh tonnes in 2022-23, that is roughly 8.6 lakh tonnes of MLP a year. (This is our own estimate from those two figures.)
The economics are brutal at the collection end. For MLP sachets, the money recovered barely covers the cost of compensating waste pickers, transport, aggregation, sorting and baling. In plain terms, the kabadiwala makes next to nothing on it, so much of it is never collected at all. It ends up littered, dumped or burned, which is why the sachet is the face of India's plastic-litter problem.
The high road and the low road
India's plastic rules sort packaging into categories, and the sachet sits in the two that pay worst.
- Category II is flexible plastic packaging, including single-material sachets, pouches and carry bags. If a sachet is made of one plastic, it can in principle be recycled into lower-grade film or pellets.
- Category III is multi-layered plastic: at least one plastic layer plus at least one non-plastic layer, the classic foil or metallised sachet. This is the genuinely hard case.
For a collector, that distinction is money. A clean, single-material film can go to a recycler. A foil-laminated MLP sachet largely cannot, and under the rules its legitimate end is mostly what they call "end-of-life disposal": burning it for energy, co-processing it in cement kilns, turning it into oil, or using it in road construction. Those routes keep MLP out of the river, but they are disposal, not recycling, and they do not pay a collector the way a bale of clean PET does.
So the same shelf of sachets splits into two fates at the scrap yard: the single-material ones that a recycler might take, and the foil ones headed for a cement kiln. Knowing which is which is the first skill the trade has to learn.
The rule is changing who pays
If the scrap market will not pay for a sachet, something else has to, and that is what Extended Producer Responsibility (EPR) is quietly doing.
Under the EPR guidelines, the brand that sells the sachet, the producer, importer or brand owner, carries a legal duty to see a set share of that packaging collected and processed. For Category III (MLP), the minimum recycling target rose from 30% of the EPR obligation in 2024-25 towards 60% by 2027-28, and a small recycled-content requirement of 5% climbs to 10%. For Category II flexible packaging, the recycled-content requirement runs higher, from 10% to 20%.
The brand meets these duties by paying registered recyclers and processors and buying EPR certificates. That means the value of a collected sachet is shifting from the scrap price, which is near zero, to the EPR system, which is funded by the brand. The paymaster for the hardest plastic is no longer the recycler buying material. It is the producer discharging an obligation.
That is the opening for organised collection. A sachet pulled into a documented, EPR-linked channel can earn its keep through the producer's payment, even when the material itself is worth nothing. A sachet left in the informal cash market stays worthless.
Enforcement is real, not notional. The pollution regulator has issued show-cause notices to producers and brand owners for missing EPR targets and failing to file annual returns, so the pressure on brands to actually fund collection is rising, not fading.
What this means for you
Kabadiwalas and film collectors: The foil sachet still pays almost nothing as loose scrap, and that will not change, so do not chase it on the open cash market. The value now comes through EPR-linked collection, where the brand pays. Keep clean single-material film separate from foil-laminated sachets, because the single-material film can still go to a recycler while the foil goes to co-processing. Ask which aggregators feed registered, EPR-channel processors.
Aggregators and traders: For MLP, your buyer is becoming the EPR system and the cement co-processors, not a recycler paying for material. Build the documented, traceable collection trail that lets a brand or a producer responsibility organisation count your tonnes towards its target. That paperwork, not the scrap price, is where the money is.
Flexible-plastic recyclers and co-processors: The mandate guarantees that a rising share of sachet waste has to be collected and processed every year. Cement kilns, waste-to-oil and single-material film recycling are the real offtake. Capacity tied to a steady EPR-funded feedstock contract is worth more than capacity chasing a spot market that does not exist for MLP.
Brand owners with sachet packaging: Your Category II and III obligations rise each year, and foil MLP is the most expensive kind to discharge. Moving a sachet from foil-laminated MLP to a recyclable single-material (mono-material) structure cuts both the litter and the compliance cost. The cheapest packet to fill can be the dearest to account for.
What to watch
- 31 March 2027: The close of the 2026-27 EPR year, with higher Category II and III recycling targets. Watch whether brands actually fund collection or absorb penalties.
- Mono-material sachets: Whether more FMCG brands switch foil MLP to recyclable single-material packs to cut their EPR burden.
- Cement co-processing capacity: How much MLP the kilns can absorb, since that is the main legitimate route for foil sachets.
- EPR certificate prices for flexible and MLP: The clearest signal of what a collected sachet is actually worth through the system.
- CPCB enforcement: Whether show-cause notices turn into recovered environmental compensation, which decides how seriously brands take collection.
The bottom line
The sachet is a design triumph and a recycling dead end: a fifth of India's plastic waste, built to be cheap, and worth almost nothing once used. Consumers saying they would pay more does not reach it, because the whole point of a sachet is the low price. What is actually changing the sachet's value is the rule that makes the brand pay for its collection. For the trade, the lesson is blunt. Stop valuing the foil sachet by the scrap price, which is zero, and start capturing it through the EPR channel, which is where the brand's money now flows.

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