PPWR finally approved: Changes ahead for European packaging

The EU’s Packaging and Packaging Waste Regulation is now approved, offering greater clarity to the packaging industry, notes Regina Mestre, analyst for packaging and logistics at Rabobank. “We expect the directive will drive growth in the European packaging industry and shape market changes for years to come. The legislation outlines requirements for packaging throughout its life cycle – from design to end-of-life management – and covers extended producer responsibility schemes, waste reduction, and deposit refund systems. Value chain collaboration will be crucial for successful implementation as companies adjust products and strategies to ensure compliance.”

The European Council gave its final approval to the Packaging and Packaging Waste Regulation (PPWR) on 16 December 2024, two years after it was first proposed. Its entry into force is set to significantly impact the European packaging industry, Mestre points out.

Companies of all sizes will need to review their products and make adjustments to ensure compliance, as well as adapt their sourcing and production strategies, to comply with the new regulations. “Additionally, we anticipate some material substitution in packaging, which will vary depending on the application and use. The ambitious targets for waste reduction and separate collection of packaging waste mean that equally ambitious investments in waste management systems and recycling will be required to achieve compliance,” she notes.

The PPWR is likely to influence growth opportunities in the European packaging industry and shape structural and scalable changes on the market for years to come, the industry analyst notes. “Collaboration within the value chain will be crucial for successful implementation. It is therefore important for companies that produce, use, or distribute packaging to closely monitor any secondary legislation at the individual member state level,” she adds.

The regulation was published in the EU’s Official Journal on 22 January 2025, and is set to come into force 18 months after this date. This means that the new rules will start to apply in August 2026, she concludes.

 

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