Zomato Ltd. said that shifting to sustainable packaging could increase food delivery costs in India by 10% to 30% [1], [2].
This potential price hike reflects the tension between environmental goals and consumer affordability. As the industry moves to reduce plastic waste, the higher cost of eco-friendly materials may be passed on to restaurants and customers.
Zomato is currently encouraging restaurants to adopt environmentally friendly packaging to reduce the amount of plastic waste generated by the delivery ecosystem [1]. However, the company said that these non-plastic alternatives are more expensive than traditional materials [2].
According to the company, this transition could lead to a cost increase ranging from 10% to 30% [1], [2]. This increase would affect both the operational costs for the restaurants preparing the food, and the final price paid by the consumer upon delivery.
The move comes as India seeks to curb plastic pollution, but the financial burden of sustainable materials remains a hurdle for mass adoption in the quick-commerce and food-delivery sectors [1]. While Zomato is promoting the shift, the company has not yet mandated a specific timeline for all partners to switch materials.
Industry analysts said that the scalability of sustainable packaging will depend on whether manufacturers can lower the cost of biodegradable options. Until those costs drop, the premium for "green" delivery will likely remain visible on the customer's receipt [2].
“Sustainable packaging could increase food delivery costs in India by 10% to 30%.”
This warning signals a critical pivot point for the gig economy in India, where thin margins for restaurants and price sensitivity among consumers often clash with ESG (Environmental, Social, and Governance) goals. If a major player like Zomato sees a potential cost increase of up to 30%, it suggests that the current supply chain for biodegradable packaging is not yet optimized for the scale of mass-market food delivery.
