Pharma's eco pill: Sustainable packaging as new prescription for planet

Merck also revealed that they are investing in renewable energy sources, and half of their Mumbai facility's energy is now sourced from solar panels

Pharmaceutical (pharma) companies are increasingly adopting sustainable packaging materials to replace traditional ones, aiming to reduce their carbon footprint. This move is driven by both regulatory requirements and environmental, social, and governance targets.

Merck Life Science has replaced single-use glass bottles with reusable steel drums for chemical transportation. This change reduces carbon emissions and alleviates the logistical burden of waste disposal for customers.

“This shift in the Indian industry is largely driven by regulations and customer demands, particularly from major importers in Europe and the US,” said Atul Barjatya, director, head of sales, solvents, inorganics, safety and essentials, and diagnostic solutions at Merck Life Science.

Switching to sustainable materials comes at a price.

Barjatya explained, “The upfront cost of a 25-litre steel drum is Rs 7,000–8,000, considerably higher compared to 2.5-litre glass bottles, which cost Rs 100 each. However, the long-term cost savings and environmental benefits are substantial, as steel drums can be reused up to 20 times and save approximately 400 kilogram of carbon dioxide over their life cycle. This is why we decided to make this switch.”

Merck Life Science is also investing in renewable energy. Half of the energy used at its Mumbai facility comes from solar panels.

ALSO READ: Pricing challenge in US biz, rich valuations may weigh on pharma stocks

Although Merck is a multinational, this trend is also catching on among home-grown drug companies.

Venus Remedies is reducing its environmental footprint by replacing single-use plastics with eco-friendly alternatives.

The company has adopted paper trays for ampoule packaging and eco-friendly ultraviolet-coated cartons instead of laminated ones. It is also using algorithms to optimise packaging sizes for shipping cartons, minimising overall plastic use and maximising logistical efficiency.

Saransh Chaudhary, president, global critical care at Venus Remedies, elaborated on the shift.

“For essential plastic packaging, such as caps for vial seals, we are working with suppliers to develop alternatives made from biodegradable and compostable plastics. These materials break down more readily and pose less risk of contributing to microplastic pollution,” Chaudhary said.

Biodegradable shrink wrap is 50 per cent more expensive than plastic, and paper trays are about 15 per cent more expensive than their plastic counterparts.

Chaudhary acknowledged the higher cost but expressed hope that prices would decrease over time.

“They represent a promising solution for the future as consumer demand and technological advancements drive down costs. We have taken an important step to reduce our carbon footprint by introducing refill packs to curtail carbon emissions,” he added.

ACG, one of the largest service providers of packaging solutions to the pharma industry, is also adopting sustainable practices. It focuses on reducing fossil fuel consumption in polymer production, developing recyclable packaging, and minimising plastic use through improved processes.

The company has introduced paper-based laminates and aluminium blisters as alternatives to traditional plastic packaging. Although acknowledging the initial cost increase, ACG foresees a decrease as demand and production volumes rise.

“Polymers come from fossil fuels, undergoing refinement before the resin is manufactured and processed into various types of plastics, such as polypropylene, polyvinyl chloride (PVC), polyester, and polyethylene. At ACG, we supply barrier packaging materials to the pharma industry, primarily using PVC combined with high barriers against oxygen and moisture to protect drugs,” said S R Shivshankar, chief executive officer of ACG Pharmapack.

He added that the company recycles a significant portion of its materials, with only about 2 per cent being sent out into the waste stream. This waste is repurposed into other products, such as injection-moulded door frames.

Paper blisters are 20 per cent more expensive than traditional plastic blisters. However, industry experts believe that, like other alternative materials, costs will decrease with rising demand, making these materials more accessible.

Sustainability initiatives, primarily driven by consumer demand, are gaining traction globally and are gradually permeating the Indian market.

Sector’s eco pill

Merck Life Science

Initiative: Replacing single-use glass bottles with reusable steel drums for chemical transportation 

Cost difference: 25-litre steel drum cost Rs 7,000-8,000 each compared to 2.5-litre glass bottles that cost Rs 100 each

Venus Remedies

Initiative: Adopted paper trays for ampoule packaging and eco-friendly ultraviolet-coated cartons instead of laminated ones

Cost difference: Paper trays are 15% costlier, biodegradable shrink wrap is 50% more expensive