Food Service Gets Eco-Friendly Amid Rising Consumer Demand

India’s food service operators are increasingly responding to rising consumer demand for eco-friendly practices and addressing the sector’s environmental impact. Many are transitioning to greener alternatives, such as minimising plastic use and adopting sustainable sourcing. These initiatives reflect a commitment to balancing business growth with ecological responsibility, highlighting the industry’s pledge to environmental sustainability, according to GlobalData, a leading data and analytics company. 

Among the most visible eco-friendly shifts in the Indian foodservice industry is the reduction in single-use plastics. With government mandates and consumer advocacy encouraging the move, many restaurants and food delivery platforms have replaced plastic packaging with biodegradable and compostable materials. For instance, food service operators such as Chai Point and Pot Pot have adopted eco-friendly packaging solutions.  

A GlobalData 2024 Q2 Consumer Survey corroborates this trend, where 59 percent of respondents in India stated that their product purchasing decisions for food and drinks are either always or often influenced by how ethical, environmentally friendly, or socially responsible the product or service is. 

Foodservice operators are increasingly opting for locally sourced, organic, and seasonal ingredients. By reducing reliance on imported goods and focussing on farm-to-table practices, restaurants not only support local farmers but also cut down on the carbon footprint associated with long-distance transportation. Underlining this trend, 77 percent of Indian respondents in a recent GlobalData consumer survey strongly or somewhat agreed that they stop buying products from a brand if its supply chain is not sustainable or ethical. 

Government policies, such as the ban on single-use plastics, are accelerating the adoption of sustainable practices. Compliance with regulations is not only necessary but also presents opportunities for operators to innovate and differentiate themselves. While many operators are adopting eco-friendly measures, scalability remains a challenge, particularly for smaller operators with limited resources. High costs associated with certain sustainable materials and technologies can be a barrier, suggesting a need for greater investment, subsidies, or incentives to support wider adoption of green practices across the industry.