Now Reading: Sustainable packaging may hike Zomato food costs by 10-30%
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Sustainable packaging may hike Zomato food costs by 10-30%
Switching to sustainable and biodegradable packaging for food deliveries could make orders 10% to 30% more expensive for consumers, according to Zomato's Chief Sustainability Officer, Anjali Ravi Kumar. Currently, plastic packaging accounts…
Switching to sustainable and biodegradable packaging for food deliveries could make orders 10% to 30% more expensive for consumers, according to Zomato's Chief Sustainability Officer, Anjali Ravi Kumar. Currently, plastic packaging accounts for about 5% of the total order cost, which is borne by the customer.
Kumar said affordability is the biggest challenge in replacing plastic with materials like bagasse, aluminium, paper, and earthenware, as customers have limited willingness to pay a premium for eco-friendly options. She expects costs to fall once adoption increases and economies of scale kick in.
To promote sustainable packaging, Zomato has launched PackSwitch, a website helping restaurants and cloud kitchens find the right packaging for each menu item. The company also offers a low-plastic-packaging filter on its app and has recognised over 10,000 restaurants across 500 cities under its Plastic-Free Future Programme.
Indian Opinion Analysis
The cost hurdle is real: plastic is cheap and lightweight, while sustainable alternatives often add weight and manufacturing expense. With margins already thin in the food-delivery business, the 10-30% premium could push customers to choose cheaper, less eco-friendly options, weakening the green transition. Zomato's PackSwitch platform is a practical step, but its success depends on restaurant adoption and customer willingness to pay. The key number to watch is how many restaurants actually switch and whether the cost premium drops as scale increases. A similar dynamic played out globally with reusable bags, which became cheaper only after widespread adoption.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
