• PFAS restrictions now apply: Food-contact packaging containing “forever chemicals” above strict EU limits can no longer enter the market.
• Waste reduction accelerates: The EU aims to cut packaging waste 5% by 2030 and 15% by 2040, compared with 2018 levels.
• Businesses face sweeping changes: Recyclability, reuse, labelling and single-use packaging requirements will reshape compliance and investment across Europe’s packaging value chain.

The European Union has begun applying its new packaging regime, bringing EU-wide restrictions on PFAS in food packaging into force. The rules also start a broader overhaul aimed at cutting waste and reducing reliance on virgin materials.

The Packaging and Packaging Waste Regulation replaces a patchwork of national requirements with common rules across the EU Single Market. It covers the full packaging life cycle and will introduce further requirements through 2030.

For companies, the shift creates new compliance obligations but also greater regulatory consistency across member states. It could also direct more investment toward recyclable materials, reuse systems and secondary raw materials.

PFAS restrictions target food packaging

One of the first measures to apply restricts per- and polyfluoroalkyl substances, known as PFAS, in food-contact packaging. Packaging containing PFAS above specified limits can no longer be placed on the EU market.

The chemicals have been widely used for their resistance to grease and water. Applications include takeaway containers, fast-food wrappers, bakery paper, microwave popcorn bags and pizza boxes.

PFAS are highly persistent and can accumulate in the environment and human body. Research has associated exposure with cancer, kidney disease, immune disorders, pregnancy complications and developmental problems.

Manufacturers will also need to provide information allowing authorities to trace packaging to its source when concerns arise.

“The new Packaging and Packaging Waste Regulation is an investment in Europe’s future: it will help reduce waste, increase recycling, make food-contact packaging safer for the consumers by limiting harmful substances such as PFAS, and reduce our dependence on virgin raw materials. These are essential steps towards a truly circular economy. At the same time, the Regulation will replace fragmented national rules difficult to navigate for economic operators in the internal market. But new rules also come with adjustment costs, and we have worked intensively with market operators to implement the new rules in a pragmatic and unbureaucratic way.”

Jessika Roswall, Commissioner for Environment, Water Resilience and a Competitive Circular Economy

Europe targets rising packaging waste

The regulation responds to a sharp increase in packaging waste across Europe. Volumes have risen more than 20% over the past decade, driven partly by e-commerce and grab-and-go consumption.

Europeans generate about 180 kilograms of packaging waste per person each year, according to an EU official. Packaging also accounts for roughly 40% of European plastic consumption.

Eurostat data show that 35.3 kilograms of packaging waste per person came from fossil-fuel-derived plastics in 2023. Only 42% of that material was recycled.

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That dependence carries both climate and economic risks. Virgin plastic production relies heavily on fossil fuels, leaving European supply chains exposed to energy and oil market disruptions.

The PPWR is intended to strengthen markets for secondary raw materials and reduce those vulnerabilities. It also supports the EU’s wider goal of achieving climate neutrality by 2050.

Bigger compliance changes arrive by 2030

The regulatory burden will increase over the coming years. An EU-wide labelling system for waste sorting is due to apply from 2028. The Commission plans to consult on harmonised labels later this year.

More extensive measures arrive in 2030. The EU aims to reduce packaging waste by 5% by then and 15% by 2040, using 2018 as the baseline.

Packaging will also need to be recyclable in an “economically viable way.” The framework includes reuse targets, restrictions on some single-use formats and limits on empty space inside packages. Deposit-return systems for cans and plastic bottles will also become mandatory.

Implementation will initially allow companies some room to adjust. An EU official said member states should issue warnings rather than immediately penalising or removing non-compliant products.

What businesses and investors should watch

For consumer goods companies, retailers and packaging manufacturers, PPWR turns packaging design into a more significant regulatory and investment issue. Material choices will increasingly affect compliance, costs and access to the EU market.

The common framework could reduce complexity for companies operating across multiple member states. At the same time, businesses face capital requirements as packaging systems move toward recyclability, reuse and lower virgin-material consumption.

For investors, the transition creates both risk and opportunity across chemicals, plastics, recycling and circular materials. As the EU moves toward its 2030 requirements, packaging companies able to meet stricter standards at scale could gain an increasingly valuable position in Europe’s circular economy.