New EU Packaging and Packaging Waste Regulation Enters into Force – an In-Depth Look

The EU’s new Packaging and Packaging Waste Regulation entered into force on February 11. The Regulation seeks to reduce packaging waste, increase recycling and foster harmonization of EU-wide rules on labeling, empty space and mandatory recycled content. 

The Regulation will phase in over the next decade and beyond. It replaces the previous Packaging and Packaging Waste Directive, which was first adopted in 1994, and amends subsequently adopted packaging and waste requirements. 

In this post, we describe the requirements under the Regulation and its phase-in. As discussed in this post, this complex, detailed Regulation will have an operational and financial impact – in many cases significant – on a large number of U.S.-based multinationals doing business in Europe. 

Covered Packaging

The Regulation will apply to all packaging placed on the EU market, and to all packaging waste in the EU, regardless of the type of packaging or material or whether the packaging or packaging waste originates from manufacturing, retail or distribution, offices, services or households or other industries. 

“Packaging” refers to any item designed to contain, protect, handle, deliver or present products to another operator or end user. It can vary by function, material and design. The following categories are included: 

• Primary production packaging: items designed and intended to be used as packaging for unprocessed products from primary production. 
• Sales packaging: packaging used to constitute a sales unit consisting of products and packaging to the final user or consumer at the point of sale.
• Grouped packaging: packaging used to constitute a grouping of sales units at the point of sale, irrespective of whether that grouping of sales units is sold as such to the end-user or whether it serves as a means to facilitate the restocking of shelves at the point of sale or to create a stock-keeping or distribution unit, and which can be removed from the product without affecting its characteristics.
• Transport packaging: packaging used to facilitate handling and transport of one or more sales units or a grouping of sales units, excluding road, rail, ship and air containers, in order to prevent damage to the product from handling and transport.
• E-commerce packaging: transport packaging used to deliver products in the context of sale online or through other means of distance sales to the end user.
• Take-away packaging: service packaging filled at attended points of sale with beverages or ready-to-eat food for immediate consumption elsewhere, typically consumed directly from the packaging.

Although broad in its scope, the Regulation explicitly excludes the following from the definition of packaging:

• Cups, food containers, sandwich bags and other items that are designed and intended to be sold empty by the final distributor;
• Items that are an integral part of a product and are necessary to contain, support or preserve that product throughout its lifetime and where all elements of that item are intended to be used, consumed or disposed of together; and
• Paints, inks, varnishes, lacquers and adhesives directly on a product.

“Waste” is defined consistently with the general definition in the Waste Framework Directive, referring to any substance or object which the holder discards, intends to discard or is required to discard.

The Regulation applies to all economic operators who make packaging available on the EU market. This includes manufacturers, suppliers of packaging, importers, distributors, authorized representatives, final distributors and fulfilment service providers. 

Packaging Requirements 

The Regulation will impose additional sustainability requirements on packaging, including specific targets for packaging recyclability, minimum recycled material content requirements and reduction of empty space ratios that vary based on the type of packaging. Additionally, the Regulation will mandate the reduction of packaging, impose restrictions on certain packaging formats and require specific labeling. These requirements are further discussed below.

The Regulation will also impose limits on per- and polyfluorinated alkyl substances (PFAS) in food-contact packaging. That aspect of the Regulation is not discussed in this post.

Packaging Recyclability Targets

The Regulation will require all packaging placed on the EU market to be recyclable. The European Commission is required to adopt delegated acts by January 1, 2028 that establish design for recycling criteria and recyclability performance grades. 

The Regulation requires that all packaging be grade C or above recyclable by January 1, 2030 and grade B or above by January 1, 2038. The Regulation defines Grade A as greater than or equal to 95% recyclable, Grade B as greater than or equal to 80% recyclable and Grade C as greater than or equal to 70% recyclable (each per unit, by weight). The Regulation considers packaging recyclable if it:

• Is designed for material recycling;
• Can be recycled so that the resulting secondary raw materials are of sufficient quality to substitute the primary raw materials;
• Can be effectively and efficiently separately collected in accordance with the Regulation; 
• Can be sorted into specific waste streams without affecting the recyclability of other waste streams; and
• Can be recycled at scale.

Packaging must be designed for material recycling by January 1, 2030 (or two years following the entry into force of the delegated acts relating to such requirement, if later). Packaging must also meet the other requirements above by January 1, 2035 (or five years following the entry into force of the delegated acts relating to such requirements, if later). 

The following types of packaging, among others, are largely exempt from the Regulation’s recyclability requirements:

• Packaging used for the transport of dangerous goods;
• Sales packaging made from lightweight wood, cork, textile, rubber, ceramic, porcelain or wax; and
• Various contact-sensitive packaging (mainly used in healthcare and hospitality).

Recycled Content 

The Regulation requires the European Commission to adopt implementing acts by December 31, 2026 that establish the methodology for the calculation and verification of the percentage of recycled content in packaging. By January 1, 2030, the Regulation requires all plastic parts of packaging placed on the EU market to contain specified minimum percentages of recycled content recovered from post-consumer plastic waste (per packaging type and format) as follows:

• 30% for contact-sensitive packaging made from polyethylene terephthalate (PET) as the major component, except single use beverage bottles;
• 10% for contact-sensitive packaging made from plastic materials other than PET, except single use plastic beverage bottles;
• 30% for single-use plastic beverage bottles; and
• 35% for all other plastic packaging.

By January 1, 2040, the minimum percentages are increased to 50%, 25%, 65% and 65%, respectively.

“Contact-sensitive packaging” refers to plastic packaging for products within the scope of certain other specified EU requirements, including materials and articles intended to come into contact with food, cosmetic products, medical devices, veterinary medicinal products, medicinal products and dangerous goods. 

However, the recycled content obligations do not apply to packaging that is in direct contact with medicinal products (and packaging containing such packaging), certain contact sensitive plastic packaging, compostable plastic packaging and packaging used for the transport of dangerous goods. The requirements also do not apply to plastic packaging that is intended to come into contact with food where the quantity of recycled content may pose a health threat, as well as plastic parts that represent less than 5% of the full packaging unit. 

Minimization of Empty Space and Other Packaging Design Requirements

The Regulation will also require all packaging to be designed so that its weight and volume is reduced to the minimum necessary to be functional, taking into account the shape and material that the packaging is made of. The Regulation requires the European Commission to, by February 12, 2027, request European standardization organizations to develop or update harmonized standards to define methods for measuring compliance with packaging minimization requirements, including maximum weight, volume, wall thickness and empty space for common packaging types. The Regulation requires that, by January 1, 2030, all grouped, transport and e-commerce packaging used for supply of products to final distributors or end-users have an empty space ratio below 50%. 

“Empty space” refers to the difference between the total volume of the grouped, transport or e-commerce packaging and the volume of sales packaging therein. Space filled by bubble wrap, sponge fillers, foam fillers, wood wool, polystyrene or Styrofoam chips is considered empty space for purposes of the Regulation. 

Exceptions will apply for reusable packaging, sales packaging used as e-commerce packaging and packaging covered by certain trademark or design rights.

Beginning on January 1, 2030, the Regulation will restrict the use of certain packaging formats for packaging used for particular food and beverages, preservatives and cosmetic, hygiene and toiletry products used in the accommodation sector. 

Reusability 

By February 12, 2027, the European Commission is required to adopt delegated acts establishing minimum reusability requirements for packaging. Economic operators that make use of reusable packaging will also be required to participate in reuse systems and inform end users of certain rules for refill. 

The Regulation includes the following reusability requirements:

• For transport packaging or sales packaging used to transport products (including pallets, boxes, crates, containers, canisters and wrapping materials):
  • By January 1, 2030:
    • 100% of packaging used between sites where an economic operator conducts activities (including sites of linked or partner enterprises) must be reusable within a reuse system. 
    • 100% of packaging used to deliver products within the same Member State must be reusable within a reuse system.
    • 40% of all other packaging for transporting products within the EU must be reusable within a reuse system.
  • By January 1, 2040, economic operators must endeavor to use at least 70% of transport packaging and sales packaging used for transport in a reusable format within a reuse system. 

Exceptions will apply for packaging used for the transportation of dangerous goods and large-scale machinery, packaging that is in direct contact with food and cardboard boxes.

• For grouped packaging in the form of boxes:
  • By January 1, 2030, 10% of packaging must be reusable within a reuse system.
  • By January 1, 2040, economic operators must endeavor to use at least 25% of packaging in a reusable format within a reuse system. 

Exceptions will apply for cardboard and packaging used for stock-keeping or to group products into distribution units.

Additional reuse obligations will apply for certain distributors of alcoholic and non-alcoholic beverages and food.

Beginning in January 2030, subject entities will be required to submit an annual report to the applicable Member State competent authority describing achievement of the Regulation’s reuse targets.

Labelling Requirements

In order to facilitate consumer sorting, starting August 12, 2028 (or two years following the entry into force of the implementing acts relating to such requirement, if later), all packaging placed on the EU market must be marked with a label containing information on its material composition. In addition to the label, economic operators may include a QR code or other standardized digital carrier on packaging to provide information about the sorting destination for each packaging component.

Starting February 12, 2029 (or 30 months following the entry into force of the implementing acts relating to such requirement, if later), reusable packaging must be labeled to inform users that it is reusable. A QR code or digital carrier must provide details on the availability of reuse systems and collection points, and track the packaging’s usage (e.g., trips and rotations). Reusable packaging must also be clearly distinguished from single-use packaging at the point of sale.

Additional labeling requirements will apply for specific types of packaging:

• Compostable packaging must indicate that the material is compostable, not suitable for home-composting and is not discardable in nature. 
• Packaging containing substances of concern must be marked by standardized, open, digital-marking technologies.
• Packaging that is subject to deposit and return systems must be marked with a clear and unambiguous label.
• Packaging labels must reflect the reusability and recycled content of packaging when those obligations become effective under the Regulation.

Extended Producer Responsibility Obligations 

The Regulation contains a framework for the creation of EU EPR programs. The EPR mechanism is intended to shift the costs of packaging waste management and associated risks to the producer entities that place the packaging on the EU market. Specifically, producer entities will be required to cover: 

• Costs of waste management, including separate collection, sorting and treatment operations necessary to meet the EU’s waste legislation targets;
• Costs of providing adequate information to waste holders, including proper waste disposal or separate collection, recycling systems in place and public awareness campaigns; and 
• Costs of carrying out compositional surveys of mixed municipal waste. 

EU Member States may specify how these costs are calculated and apportioned, including with consideration given to the type of product or its environmental impact.

The Regulation will allow producer entities to report to EU Member States directly or appoint authorized representatives, or producer responsibility organizations, to report to EU Member States and fulfil EPR obligations on their behalf. Entities that make available for the first time on the market of the applicable EU Member State an amount of packaging or packaged products of less than 10 tons during one calendar year must report quantities, by weight, of all such packaging materials by material type.

Under the Regulation, each EU Member State must establish a national register within 18 months of the first implementing act’s adoption. Some Member States already have a register. For example, Germany has the LUCID packaging register. By February 12, 2026, the European Commission is required to adopt implementing acts establishing the format for registering and reporting to a register. These acts are to specify the level of detail required for data submission and outline the packaging types and material categories that must be covered. 

Rebecca Schulga, a Visiting Foreign Lawyer, contributed to the preparation of this post. 

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