Significant change ahead for packaging on the EU market

Introduction

On 22 January 2025, the EU Packaging and Packaging Waste Regulation (“PPWR”)^[1] was published in the Official Journal of the EU. The PPWR will enter into force on 11 February 2025 and its general date of application is 12 August 2026 (although longer transitional provisions apply to certain requirements).

The PPWR will repeal and replace the current Packaging and Packaging Waste Directive (“PPWD”)^[2].

Background 

The PPWR will establish a harmonised legal framework for packaging with the aim of avoiding obstacles to trade and distortion of competition within the EU and preventing and reducing the adverse impacts of packaging and packaging waste on the environment and human health.

The PPWR aims to address three main interlinked issues: (i) the growing generation of packaging waste, linked to an increase of single-use packaging, especially plastics; (ii) the barriers to packaging recyclability (confusing labelling or design features inhibiting recycling); and (iii) ensuring recycling at scale and boosting the incorporation of recycled content into new packaging and products.

The PPWR applies to all forms of packaging and will impact all economic operators that make packaging and packaged products available on the EU market (including manufacturers, producers, importers, distributors and fulfilment service providers) and fundamentally re-shape the regulation of packaging in the EU. Every business which handles packaging as part of its EU supply chain will be affected and is required to take immediate action.

A Non-exhaustive List of Key Requirements

• Chemical substances: with different entry into force dates, stricter requirements as to the chemical substances contained in packaging enter into effect. There is a prohibition on packaging containing certain levels of PFAS intended to come into contact with food being placed on the market. These PPWR measures are separate from the inclusion in September 2024 of several PFAS substances in the REACH regime and the recent announcement by the Commission that it intends to ban PFAS in consumer products.
   
• Recyclability: design for recycling criteria and performance grades (from A to C) will be established by delegated acts that will determine which products are considered recyclable and can therefore be placed on the market from 2030 and how extended producer responsibility (“EPR”) fees will be modulated. Separately, from the same date, minimum recycled content is required from certain types of packaging.
   
• Use of recycled materials in packaging: ambitious targets are set for recycled content in plastic parts of packaging, with a modulation of EPR fees based on the percentage of recycled content used in the packaging.
   
• Compostability: some packaging types will have to be compostable: permeable tea, coffee or other beverage bags or soft after-use system single-serve units that contain tea, coffee or other beverage and are intended to be used and disposed of together with the product; and sticky labels attached to fruit and vegetables. Member States (“MSs”) are empowered to expand this requirement to lightweight or very lightweight carrier bags as well as to other packaging where existing national level requirements are in force before the date of application of the Regulation.  All other packaging has to be chemically or mechanically recyclable.
   
• Reduction/minimization of packaging waste: packaging must be designed so that its weight and volume is reduced to the minimum necessary to ensure its functionality. In addition, unnecessary and superfluous packaging will be banned as well as certain single-use packaging (not just plastic). An "empty space" ratio will be introduced, pursuant to which the empty space between sales packaging (i.e. primary packaging) and the grouped, transport or e-commerce packaging (i.e. secondary and tertiary packaging), cannot be more than 50% of the total volume of the outer packaging. The same is to apply to sales packaging, but without there being a particular specified empty space ratio.
   
• Re-use of packaging: ambitious mandatory reuse or refill targets are directly applicable to economic operators (rather than to MSs) for packaging, including for e-commerce packaging, and there is an obligation to set up and/or participate in a “system for re-use” for each re-usable packaging offered. This is coupled with an obligation for the final distributors of certain types of re-usable packaging to take-back used packaging.
   
• Harmonised Labelling: packaging must be marked with standardised labels including (i) a label containing information on its material composition; (ii) a label on packaging reusability and a QR code that provides for further information; and (iii) for plastic packaging, information on the share of recycled content/biobased recycled content; among other labelling and marking requirements.
   
• EPR: the main new obligation is the creation of registers of producers in each MS and the obligation for producers of packaging waste to register and to report each year to each MS the quantities and types of packaging supplied. Online platforms must obtain information from producers using their platforms as a condition for using their services and may pay on behalf of producers if empowered to do so by a special written mandate.

The requirements in the PPWR will be further specified in awaited future guidance, harmonised standards and subsequent adoption of implementing and delegated acts.

Conclusion

The PPWR presents a raft of new challenges, as well as some opportunities, for businesses. On the one hand, there is the opportunity to explore more sustainable, innovative ways of producing, importing, manufacturing and making use of packaging. On the other hand, every business that handles packaging at any point in the supply chain, particularly brand owners and importers into the EU, will face a significant new compliance burden and would have to dedicate significant new resources to ensuring their packaging suppliers keep up with the elevated standards, which will continue to gradually become more and more stringent over the next 15 years.

To remain compliant, business may need to audit their packaging suppliers and the materials in the packaging they use, and to reassess designs and labelling, in addition to elevated duties as pure “producers” of packaging to contribute to waste management. The process will likely involve switching to different materials or altering designs of packaging to enhance recyclability, as well as to comply with packaging minimisation requirements. Most business will need to start using a proportion of re-usable packaging, too.
 

Article co-authored by Negina Maihanwal and Jaya Jaspal, Trainee Solicitors at CMS.

^[1] Regulation (EU) 2025/40

^[2] Directive 94/62/EC