Sustainability is not a trend – today, it’s a reality for consumers and businesses alike.
Consumers have been voting with their wallets on this issue for some time[1]. Brands and retailers have been clamouring to adapt, with many setting initial environmental sustainability targets that they aim to achieve by 2025 and 2030. And recent years have seen a raft of new regulations imposed by various regulatory bodies around the world.
The EU’s Packaging and Packaging Waste Regulation (PPWR) is one of the most significant of these proposed laws, as consumer packaging is central to the global focus on sustainability. The accumulation of plastic waste is one of the top environmental challenges we face, meaning the packaging industry has one of the loudest voices in any discussion around sustainability – and that voice has the power to inspire change.
PPWR – the devil is in the detail
PPWR is the legislation that will most directly shape the future of European consumer packaging. Its aim is simple – to solve the packaging waste problem by reducing the amount of packaging used, and by promoting reusable or recyclable packaging. It affects every business looking to operate within the European market, meaning its impact will be felt far beyond Europe.
The details of the European Commission’s Regulation proposal have been subject to an intense debate between the EU Parliament and European Council, with the final text of a preliminary deal only agreed upon in the last round of talks before the European election[2].
In short, PPWR acts as a major evolution of the existing Packaging and Packaging Waste Directive (PPWD). For one, a Regulation is a binding legislative act, as opposed to a Directive, which sets out an end goal but lets member states reach that goal however they choose. This means the measures the legislation sets out — predominantly targeting big reductions in packaging waste, with a special focus on plastic packaging waste — apply equally across every EU country.
The headline aim of PPWR is a phased waste reduction target, which targets a five percent reduction in packaging waste per capita before 2030. This target then goes up to ten percent in 2035, and 15 percent by 2040. Along with other single-use material restrictions, any type of packaging will be required to justify that its key dimensions — such as weight, volume, wall thickness or empty space — are vital to its functionality. All these efforts combined will support the overall reduction targets.
Redefining recyclability
The challenge is that many of the measures that will help businesses achieve these targets are yet to be decided. Any packaging that is unable to demonstrate its recyclability will not be allowed on the EU market from 2030 onwards, but crucially much of the detail on recycling, including definitions of the various recyclability performance grades and the design for recycling (DfR) guidelines, will only be finalised on 1 January 2028.
It is important for the industry to track the evolution of DfR and – as it has an established recycling system – try to influence the development of secondary legislation to align with the reality of recycling infrastructure. Some trends are clear – such as the widespread preference for reduced plastic use – meaning it is possible to begin future-proofing potentially problematic packaging against the prospect of bans or fees.
If a package format or material is exempt from market restrictions today, it is more likely to remain exempt in the years to come. For example, paperboard packaging is exempted from many of the market restrictions imposed by PPWR as it is already recycled at much higher rates than plastic[3].
Notably, the text of the regulation has drifted back and forth over whether the pharmaceutical industry should be subject to the recyclability and recycled content requirements. In order to protect patients, the text excludes immediate and contact-sensitive packaging. This exemption also applies to outer packaging in cases where it must meet specific performance requirements to preserve the quality of the medicinal product it contains. Although many brands are already implementing these changes, where feasible, adopting paperboard secondary packaging and paper leaflets today can sidestep these concerns in the future.
Adopting paperboard aligns with another objective of PPWR: to harmonise on-pack labelling for material composition and waste disposal, ensuring a smoother transition into the upcoming recycling labelling and definitions. Paperboard packaging that can be easily recycled promises a smoother transition into the new recycling labelling and definitions set to come into force over the next few years.
Paperboard innovations are ready and waiting
While companies are still defining their implementation plans to meet waste regulations, the direction in Europe and around the world could not be clearer. Paperboard has been successfully used in an exceptional range of packaging applications across a wide range of consumer products and other applications.
Big brands are making the switch from fossil-fuel based packaging already, often using European projects as the first step on their packaging sustainability journeys. Look no further than Coca-Cola for an example of this – the multinational beverage giant adopted Graphic Packaging’s paperboard multipack KeelClip™ in the European market, then rolled it out across the globe. This established Coca-Cola as a leader in the space, and pre-empted PPWR’s upcoming restrictions on single-use plastic shrink wrap.
Meanwhile, retailers are playing a major role in the drive toward more sustainable consumer packaging, in many cases leading the way with their own packaging guidelines and restrictions. Indeed, we have seen several retailers set ambitious reduction targets and bans on virgin petro-polymers from their stores over the past half-decade. In doing so, retailers are using sustainability both to reduce packaging waste and to differentiate themselves as they work to appeal to the preferences of today’s consumers.
[1] https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/consumers-care-about-sustainability-and-back-it-up-with-their-wallets
[2] https://www.consilium.europa.eu/en/press/press-releases/2024/03/04/packaging-council-and-parliament-strike-a-deal-to-make-packaging-more-sustainable-and-reduce-packaging-waste-in-the-eu/
[3] https://www.statista.com/statistics/1072637/recycling-of-municipal-waste-in-the-eu-by-material/