PPWR Approval Signals Major Shift in European Packaging Industry

The European Union's Packaging and Packaging Waste Regulation (PPWR) has received the green light, marking a significant milestone for the European packaging industry. This long-anticipated legislation, which received final approval from the European Council on December 16, 2024, is set to usher in comprehensive changes across the industry.

According to Regina Mestre, a packaging and logistics analyst at Rabobank, the directive aims to foster growth within the industry by introducing clear guidelines for packaging throughout its lifecycle—from design to disposal. It includes provisions for extended producer responsibility schemes, waste reduction, and deposit refund systems. Mestre emphasizes the need for collaboration along the value chain for successful implementation as companies are required to adapt their products and strategies to meet the directive's requirements.

The new regulation is anticipated to have far-reaching implications, requiring companies, regardless of size, to reassess and modify their products to ensure compliance. It will also necessitate changes in sourcing and production strategies, and potentially drive a shift towards material substitution in packaging, varying by application and use. Mestre points out that meeting the ambitious targets for waste reduction and packaging waste collection outlined in the regulation will demand significant investments in waste management systems and recycling infrastructure.

Scheduled to come into effect 18 months after its publication in the EU's Official Journal on January 22, 2025, the regulation will start applying the new rules in August 2026. The regulation promises to not only influence growth opportunities but also bring about structural changes in the market for the foreseeable future. Mestre underscores the importance for companies in the sector to monitor any secondary national legislation for detailed compliance requirements.