How much do you know about the new PPWR regulations?

What is PPWR?

The PPWR (Packaging and Packaging Waste Regulations) aims to reduce the generation of packaging waste and promote a sustainable circular economy in the packaging industry. Unlike the previous Packaging and Packaging Waste Directive (PPWD), PPWR has higher requirements, specifying specific recycling standards, requirements for the use of recycled materials, and packaging design specifications.

For example, regulations require that all logistics packaging must comply with the principle of minimization, which means that the weight and volume of the packaging cannot exceed the minimum required in practice. Simply put, it means’ using less packaging and reducing gaps’.

What is the core goal of PPWR?

As part of the European Green Deal and the New Circular Economy Action Plan, PPWR mainly covers three core goals: reducing packaging waste, promoting high-quality recycling, and increasing the use of recycled plastics in packaging. The plan is to make all packaging reusable or recyclable by 2030.

What are the requirements for packaging recycling rate in PPWR?

PPWR has set an annual goal for packaging recycling, expecting to achieve the following recycling rates for various packaging materials by 2025:

Plastic: 55%

Wood: 30%

Metal: 70%

Aluminum: 50%

Glass: 70%

Paper and cardboard: 75%

By 2030, these targets will be further increased, with a plastic recycling rate of 60% and a paper and cardboard recycling rate of 90%. Starting from 2030, specific categories of packaging must meet mandatory reuse targets.

What types of packaging will be prohibited?

Starting from 2030, PPWR will prohibit certain forms of packaging from being placed on the market, including:

1) Pre packaged fruits and vegetables weighing less than 1.5 kilograms;

2) Ready to eat food and beverage packaging sold in hotels, bars, and restaurants;

3) Small serving seasoning packaging used in the hotel and catering industry;

4) Small disposable cosmetics and toiletries packaging used in the accommodation industry;

5) Very lightweight plastic bags (such as bulk food bags available in the market).

What are the requirements for packaging material composition in PPWR?

PPWR requires packaging to indicate its material composition to ensure that consumers can correctly classify their waste. After 42 months from the effective date of the regulation, packaging should contain material composition labels;

After 48 months, the packaging still needs to indicate its reusability and come with a QR code or other data carrier for consumers to obtain more information about recycling and reuse.

PPWR prohibits the use of certain harmful chemicals, particularly so-called ‘permanent chemicals’, in food contact packaging, and restricts the marketing of products containing excessive amounts of perfluorinated and polyfluoroalkyl substances (PFAS), which are considered to pose potential risks to human health and the environment and therefore need to be completely excluded from packaging.

What are the impacts of PPWR on sellers?

The new regulations do not allow the use of oversized boxes to store small goods. To meet the requirement of “minimizing packaging”, many e-commerce companies need to invest more resources in packaging optimization, and the selection of packaging materials will be strictly limited, leading to further cost increases.

And by 2030, the gap inside logistics packaging shall not exceed 50%. This means that merchants must avoid ineffective space through more precise packaging design, which may be a huge technical challenge for e-commerce products with irregular volumes.

Specifically reflected in the following aspects:

1. Increased operating costs: In order to meet the requirements of the new regulations, e-commerce companies need to adjust their existing packaging processes, which may require the introduction of customized packaging equipment or the use of materials that meet environmental standards. This will significantly increase the operating costs of the enterprise.
2. Rising logistics costs: Due to the increase in packaging requirements, it may lead to an increase in transportation frequency and packaging material costs, thereby pushing up logistics costs, which is tantamount to further compressing the profit margin of e-commerce enterprises.
3. Supply chain adjustment: E-commerce companies also need to ensure that their partners’ package packaging complies with EU regulations, which may prolong the supply chain adjustment time and increase communication costs.
4. Increasing the risk of fines: If sellers are unable to adapt to the new regulations in a timely manner, or if their products are not changed in a timely manner or do not meet the requirements of the new regulations, they may face the risk of fines, and even the products may not be able to enter the EU market.

Regulatory impact and significance

Promote the transformation and upgrading of the packaging industry, and advance the research and development as well as the use of environmentally friendly packaging. Reduce the amount of packaging waste generated and lower the proportion of urban solid waste pollution. Reduce excessive packaging and improve packaging environmental friendliness. Reduce plastic usage and harmful substance content to achieve a more efficient circular economy.

Labeling, Marking, and Information Requirements

The packaging should clearly indicate the material composition to facilitate the classification and disposal of packaging waste by consumers. For reusable packaging, its reusability must be identified, and the location of the collection point and related instructions must be provided to the user through a QR code. Compostable packaging should clearly indicate its compostable characteristics.

Reuse and recycling targets

By 2030, achieve all packaging that is reusable or recyclable. Reduce excessive packaging, optimize packaging design to simplify material structure and improve recycling efficiency.

The EU Packaging Regulation (PPWR) will officially come into effect in February 2025, and after its implementation, companies will be given an 18 month transition period (starting from August 12, 2026, when the new EU packaging regulation will be fully implemented).

During this period, companies need to take a series of proactive and effective actions to ensure that their operations comply with the new regulations. Firstly, enterprises must have a comprehensive and in-depth understanding of the new regulations of PPWR, with a focus on key areas such as the recycling components of packaging materials, packaging design standards, and consumer information disclosure requirements.

Secondly, a comprehensive evaluation should be conducted on the existing packaging, with a focus on examining whether the content of recycled materials in the packaging meets the standards and whether the packaging design complies with the requirements of the new regulations. On the basis of evaluation, enterprises need to adjust their business strategies and actual operational processes in a timely manner, prepare all necessary supporting materials, and ensure that relevant procedures can be completed in an orderly manner during the transition period, smoothly achieving compliance with the new regulations.0