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Circular Economy Isometric Flowchart
The packaging industry is undergoing a significant transformation due to evolving regulations, such as the Packaging and Packaging Waste Regulation (PPWR). Known as the most lobbied political process in the history of the EU, the PPWR aims to reduce the amount of packaging waste globally. The regulation entered into force on 11 February 2025 and will apply across all EU markets from 12 August 2026.
“With the introduction of PPWR, brands are now looking for ways to not only meet the regulatory requirements but also thrive in this changing landscape,” describes Suvi Rasa, Sustainability Manager at UPM Raflatac.
As a partner for high-quality and innovative label materials, UPM Raflatac is collaborating with label printers and brands to prepare the industry for the PPWR. One of these partners is multinational brand-owner in industrial and consumer goods products, Henkel AG & Co. KGaA.
“The PPWR levels the playing field and incentivizes the transition to a circular economy. All companies in the packaging value chain need to get involved now,” emphasizes Carsten Bertram, Head of Packaging Sustainability at Henkel Consumer Brands.
Packaging innovations enhance recycling
At its core, the PPWR outlines that all packaging must be designed for recycling by 2030. Here, labels play a crucial role, despite being a small component of the overall package.
“With recycling compatible labels, packaging waste can be sorted into the correct recycling stream without compromising the recyclability of other materials. The yield of uncontaminated recyclate is maintained, and the resulting raw materials can then be transformed into new high-quality materials,” Suvi describes.
A prominent innovation offered by UPM Raflatac is labels with wash-off adhesives, which are designed to separate cleanly in the washing recycling process.
“The increased adoption of wash-off labels is vital for the industry in the next years,” Carsten echoes. “We have already started to include these labels especially for PET packaging and labels which do not hinder the recycling of HDPE.”
On the mechanical recycling side, artificial intelligence (AI) can advance the extraction of contaminants from the recycling stream. Another packaging innovation Carsten highlights is functional coatings for paper and flexible packaging, which can be suitable for dry solid products, like dishwashing tablets.
Forget the plastic vs. paper narrative
The PPWR also sets comprehensive requirements for recycled content in plastic packaging, as components making up at least 5% of a package’s total weight must include recycled content.
This can tempt companies to move from plastic to paper materials, however, a holistic approach is favourable.
“In some applications, changing from plastic to paper makes sense. However, if this switch increases the CO2 footprint or decreases the functionality of a package, plastic remains the right solution,” Carsten says. “For plastic packaging we can really make a difference with maximizing the use of post-consumer recycled content.”
Suvi adds that biobased plastic could also be an alternative for recycled content:
“The European Commission will in the future explore the possibility to set targets for increasing the use of biobased feedstock in plastic packaging.”
Purposeful actions to align with the PPWR
So, what does preparing for the PPWR require from a brand-owner? Carsten raises three elements related to organizational capabilities:
- Upskilling: Hosting repeated trainings helps to get the whole organization up to date on the impact and needed changes required by PPWR.
- Digitalization: Having robust packaging data is a key capability to measure progress and get ready for the PPWR conformity assessment.
- Investing in R&D: Testing materials, such as recycled plastics and new paper alternatives, as well as conducting recyclability tests is now more essential than ever.
Carsten highlights the involvement of each of their brands in the PPWR transformation. In every new product development, launch or relaunch, progress on design for recycling, increase of recycled content and CO2 footprint reduction are key deliverables.
This approach can be applied by all players in the packaging industry. Aligning early with PPWR requirements even makes business sense:
“Businesses can potentially lower their total cost of packaging by adopting solutions that are recycling compatible and include recycled content. This is because so-called Extended Producer Responsibility (EPR) fees will be calculated based on these requirements,” Suvi explains.
Conclusion
While the overall direction of the PPWR is clear, there are still uncertainties in the legal text that will be resolved with the secondary legislation. Carsten remarks:
“We all want to make the PPWR a success. Therefore, it is now essential that the EU Commission brings clarity to the detailed rules in a timely manner.”
Suvi echoes these thoughts: “The tight implementation timeline of the PPWR presents a challenge for the industry. At UPM Raflatac we are actively monitoring the development of the criteria and ensuring that our product portfolio remains future proof through continuous evaluation.”
In the meantime, focusing on the positive aspects of the regulation and on value chain collaboration is the way forward. Carsten concludes:
“As a packaging professional, I’m thankful for the PPWR, because it incentivizes the transformation to the circular economy and puts strong focus on sustainable packaging innovation.”