A Revolution in Packaging

The European Union has taken the lead in responding to the global challenges of growing waste and diminishing resources by adopting a key framework promoting packaging sustainability; namely the new EU Packaging and Packaging Waste Regulation (Regulation (EU) 2025/40, the "PPWR"). The PPWR was signed by the Presidents of the European Parliament and the Council on 19 December 2024 and published in the Official Journal of the European Union on 22 January 2025. It came into effect on 11 February 2025 and will apply from 12 August 2026.

By replacing the outdated Directive 94/62/EC, the PPWR transforms the existing packaging requirements. In essence, the PPWR encourages companies and investors to change their attitude toward packaging by promoting environmental sustainability and circular economy principles.

Circular Approach to Packaging

The PPWR introduces principles of circular economy into the packaging lifecycle. From 12 August 2026, all packaging sold on the European market must satisfy strict sustainability requirements. By 2030, packaging of any type that is placed on the European market (for example, plastic bottles, cartons, etc.) must be recyclable. Furthermore, by 2035, recycling "at scale" must be achieved. Minimum targets for the percentage of recycled content in plastic packaging have been set: up to 35% by 2030 and up to 65% by 2040 for packaging that is not contact sensitive. These measures aim to reduce dependence on raw materials and reduce carbon emissions and resource utilization.

Waste Reduction and Health Protection

The PPWR goes beyond recycling. It also counteracts the generation of waste by requiring packaging to be kept to a minimum. For example, the PPWR prohibits packaging tricks such as double walls or false bottoms that increase the apparent volume of a product. To protect human health, the PPWR also bans harmful substances such as PFAS in food contact packaging. In addition, the PPWR sets a target for 90% of single-use beverage containers to be collected separately by 2029. In combination with deposit return systems, this would facilitate the collection and reuse of waste instead of sending it to landfills or incineration.

Harmonized Labeling and Extended Producers Responsibility

Clear and uniform labels (pictograms instead of text) will be available by 2028. They will help consumers to sort waste correctly and reduce the contamination of recycling streams. 

For companies, the cost of waste management will be shifted to producers based on Extended Producer Responsibility (EPR) schemes, which means that producers are responsible for the entire lifecycle of their products, including take-back, recycling, and final disposal. Fees will depend on the degree of recyclability and content of the recycled material. This approach would incentivize sustainable design and create equal conditions for the domestic market players.

Opportunities and Challenges 

For ESG-oriented companies, the PPWR represents both a challenge and an opportunity at the same time. The deadlines for compliance are approaching fast: recyclability by 2030, recycled content targets from the same year and robust waste management systems by 2029. For SMEs, in particular, it may be difficult to adapt to these standards. 

At the same time, the PPWR also opens the door to innovation. For example, reusable packaging systems or advanced recycling technologies. Investors can also seize the moment by supporting companies that comply with these progressive rules.

A Global Benchmark?

As of today, the European Union has set the bar high. Clearly, the European Union is betting on a future where packaging does not just contain products but helps support the planet. With detailed objectives, enforcement mechanisms and a focus on the entire packaging lifecycle, the PPWR could become a benchmark for global standards. 

Recommendation for Action

Businesses should audit their packaging investments, align them with the timeline of the PPWR and explore possible circular solutions.