A regulatory proposal for reducing packaging waste and promoting sustainability appears to trigger "significant" changes in the packaging industry, as suggested by a new report from Rabobank.

Portfolio Review

The EU regulation on packaging and packaging waste (PPWR), still in the proposal stage, will require manufacturers to review their product portfolios and supply processes to ensure compliance.

Furthermore, investments in infrastructure for waste collection and recycling will be necessary to meet the objectives set by the regulation, Rabobank mentioned in its report, "Unboxing the EU’s Packaging and Packaging Waste Regulation Proposal."

The final text of the PPWR is expected to be presented in the spring of 2024, with countries incorporating the regulation into their national laws by early 2025.

In addition to setting goals for recycling, reuse, refill, and waste reduction, the regulation will emphasize specific design criteria for increased recyclability of packaging and impose the establishment of deposit return systems for plastic and metal beverage containers.

"Start Planning Now"

"Although the regulation is not yet final, and some targets are years, or even decades, away, packaging manufacturers, recyclers, governments, and anyone affected by the PPWR should begin to plan for the impact this regulation will have on their operations," commented Regina Mestre, packaging analyst at Rabobank.

"These players would do well to identify strategies and alliances that will help them adapt to the changes that will come to the European packaging landscape."

Broader Requirements

The introduction of the PPWR will require packaging manufacturers and companies trading in packaging to consider a broader range of requirements for their products and operations.

For example, to meet recycling criteria, packaging manufacturers—and in some cases, producers of packaged goods—will need to reassess their product offerings and, if necessary, reconfigure them using alternative materials.

Elsewhere, to comply with regulations regarding recycled content in plastic packaging, manufacturers will need to adjust their sourcing strategies to ensure access to recycled materials and, in certain cases, modify existing products to align with the proposal's objectives.

These changes may prompt packaging manufacturers and users to reconsider material choices, potentially leading to material substitution.

Additional investments in waste collection and recycling infrastructure will also be required to meet the requirements set by the regulation, especially regarding recycling goals and the implementation of deposit refund systems.

"While the exact effect is not yet clear, we can anticipate some of the impacts," said Mestre regarding the regulation.