Curbing the production of single-use plastic is a global challenge. With only 9% of plastic waste globally recycled and the rest in landfills eternally, the environmental footprint is enormous. Moreover, as a petrochemical product, single use plastics accelerate demand for fossil fuels, with massive climate implications.
As an alternative to single use plastics, molded fiber is one of the most promising innovations in sustainable packaging. Molded fiber is a high-quality modern packaging material that can be made from wood pulp, bamboo, bagasse, sorghum, wheat straw, or recycled waste paper. Manufacturing this material has a very low environmental load, high potential for complex designs, and is 100% recyclable, making it an ideal replacement for single use plastics across multiple industries.
How does molded fiber fare against existing alternatives?
The environmentally conscious nature of molded fiber packaging goes beyond its building blocks. The material boasts a greener production process and reduced need for chemical additives, which have environmental and health implications. Further, this form of packaging is lightweight with excellent shock absorption and protective cushioning, minimizing the risk of damage during transportation and handling, especially for fragile items like vaccine vials. Additionally, the material’s versatility makes it perfect for diverse applications, from food packaging to electronic devices, delivering a multifunctional choice for businesses seeking adaptable packaging solutions.
Look at the table below to understand how molded fiber stacks up against popular packaging materials:
What exactly is Fibmold offering?
Fibmold is developing eco-friendly, molded fiber packaging products made from natural fibers that mimic the functionality of rigid plastics. Fibmold intends to partner with various brands to help them transition to sustainable packaging. Currently, most industries are attempting to solve the issue of plastic waste by recycling, but the long-term answer is complete substitution, which is what Fibmold is offering. China is currently the world leader in manufacturing molded fiber products. However, China lacks the infrastructure and scientific know-how to manufacture premium products with intricate and complex shapes — thus preventing the manufacturing of customized products that brands need.
This is where Fibmold comes in — Fibmold plans to offer brands end-to-end customisation of packaging products via a manufacturing-first solution. Molded fiber manufacturing in India is extremely nascent and Fibmold plans to catalyze this industry by organizing demand, streamlining processes, and standardizing raw materials.
How big is the market opportunity?
The global plastic packaging market is worth USD 1 trillion, of which the consumer packaging market alone is worth USD 400 billion. The plastic packaging market comprises two segments: rigid plastics (bottles, trays, inserts, cups, lids) worth USD 200 billion and flexible plastics (films, wrappers etc.) worth USD 100 billion. The current market for molded fiber alternatives for rigid plastics is USD 5 billion and can potentially grow to USD 40 billion (at 35% CAGR) by FY30.
What about Fibmold was compelling for Omnivore?
The costs of packaging materials, especially single-use plastics (SUP), made primarily from petrochemicals — a finite resource, have been on the rise. Furthermore, globally, laws and regulations around sustainability standards compliance have already come into place, with several countries banning the use of single-use plastics. Therefore, brands with foresight are preemptively shifting away from single-use plastics, presenting a multi-billion dollar opportunity.
Unlike other alternatives to plastics (rPET, PLA, PBS, hemp, seaweed), molded fiber products have a relatively uncomplicated supply chain. Agricultural waste is abundant, cheap, and a reliable raw material. Case in point, India is the second largest producer of sugarcane, and bagasse is readily available at a nominal cost. In addition, currently, China is the only major molded fiber products manufacturer and buyers are keen on alternative players who can offer high-quality products at competitive prices.
Fibmold is backed by deep sectoral expertise. The startup is the brainchild of two serial entrepreneurs, Param Gandhi and Vaibhav Garg. The duo boasts a collective experience of over two decades in the packaging and manufacturing industry. The startup’s manufacturing-first approach aims to ensure standardized products and a reliable supply chain critical for establishing trust and long-term relationships with brands and enterprises.
The current fund raise closed by the company will be used to set up a world-class advanced pilot manufacturing unit, acquire talent, and invest in R&D. We are thrilled to welcome Fibmold to our portfolio and support the startup’s vision of disrupting the packaging industry for the better.
