Research

PPWR finally approved: Changes ahead for the European packaging and packaging waste industry

30 January 2025 17:09 RaboResearch

The PPWR will soon enter into force. We examine the adjustments made in the negotiations and how the EU packaging and packaging waste value chain can become compliant.

Intro

The European Council gave its final approval to the Packaging and Packaging Waste Regulation (PPWR) on December 16, 2024, two years after it was first proposed. Its entry into force is set to significantly impact the European packaging industry. In this report we examine the refinements and adjustments made during the two-year legislative process and their implications.

Clarity on the definitive requirements will help companies of all sizes prepare for implementation of the PPWR. They will need to review their products and make adjustments to ensure compliance, as well as adapt their sourcing and production strategies. 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.

The need to focus on compliance will have important implications for companies’ decision-making on strategy, innovation, and investment. 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. 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.

The regulation was published in the EU’s Official Journal on January 22, 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.

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