What does Europe's new packaging regulation mean for food and beverage manufacturers?

Chemical Watch InsightNews feature

As the packaging and packaging waste regulation closes in on its mission to push recycling up and waste down, Philip Chadwick examines its likely impact on the consumer-focused food sector

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Feature - beverage packaging line © sirichai stock.adobe.com

There is no shortage of ambition from the EU in its plans to tighten packaging regulations. Europe’s lawmakers have been busy shaping the packaging and packaging waste regulation (PPWR) and – having cleared so many hurdles – it will heavily influence material choice and packaging formats across the bloc and beyond.  

The changes are driven by a desire to bolster recycling and reduce waste in response to years of citizen concern over plastic pollution and over-packaging. The legislation will impact most food and drinks manufacturers regardless of the packaging format they currently use. 

The proposals in the PPWR are very ambitious. Once passed, a priority for packaging producers trading in the EU will be to consider the minimum recycled content targets that will be in place for 2030 and 2040

The legislation has been framed as radical – a shake up in the European market. But while it has a clear vision of what it hopes to achieve, will it be successful in its bid to push recycling up and waste down?  

"The proposals in the PPWR are very ambitious," explains Louisa Goodfellow, policy manager at environmental compliance specialist Ecosurety. "Once passed, a priority for packaging producers trading in the EU will be to consider the minimum recycled content targets that will be in place for 2030 and 2040. While the details of how this will work with the food and drink industry are not yet clear, consideration will need to be given to timescales in changing the manufacture of current packaging lines, plus the availability of recycled content and secondary material generally."  

Hazel O’Keeffe, partner at Keller and Heckman, adds: "I believe that the reuse and refill targets, packaging minimisation requirements, single-use plastic bans notably in the hotel, restaurant and catering (HORECA) sector, recyclability and – for plastics – recycled content targets, will all significantly impact how the food and beverage industry currently operates."  

"We are supporting the European objectives for a truly circular economy," adds Mike Baxter, external affairs director at plastic packaging manufacturer, Berry Global. "The UK continues to prevaricate – Europe is moving ahead."  

That journey has now moved closer to its conclusion. The Council of the European Union and the European Parliament announced a provisional agreement on the PPWR in March and Parliament’s environment committee (ENVI) voted it through on 24 April. The law, drafted back in 2022, represents a significant shift in how the EU views packaging waste. The PPWR will repeal the current packaging and packaging waste directive, which has been in place – albeit with amendments – since 1994. The Council believes the current directive "has not succeeded in reducing the negative environmental impacts of packaging". 

Step towards harmonisation

By switching from a directive to a regulation, the EU is aiming to harmonise the measures across member states. The directive allowed each country to decide the best way to fulfil its obligations, which led to discrepancies between member states on extended producer responsibility (EPR) and labelling.  

One of the most significant measures will be the introduction of reuse and refill targets for 2040. These will likely affect the food and drink industry the most as they specifically target beverages, both alcoholic and non-alcoholic, and the takeaway sector, alongside transport and sales packaging

Making the rules a regulation should knit the bloc’s rules together. Member states will have to work hard to meet tough targets relating to packaging – reducing total packaging amounts 5% by 2030, 10% by 2035 and 15% by 2040. There will also be a ban on packaging for unprocessed fresh produce, such as fruit and vegetables, by 2030. With all eyes overwhelmingly on plastic, restrictions and bans focus on this material and mandate the use of reusable and refillable packaging.  

Goodfellow notes: "One of the most significant measures will be the introduction of reuse and refill targets for 2040. These will likely affect the food and drink industry the most as they specifically target beverages, both alcoholic and non-alcoholic, and the takeaway sector, alongside transport and sales packaging. As an example, 10% of takeaway products will need to be sold in reusable packaging formats in 2030. Alone, this target will necessitate the implementation of large-scale take-back systems and standardised reuseable packaging formats that this particular industry is presently unfamiliar with."  

O’Keeffe adds that while the "provisional agreement introduced the possibility for member states to grant exemptions from reuse targets to economic operators for up to five years if the member states meet certain conditions regarding recycling targets", aiming to allow for more flexibility for industry, "it somewhat defeats the purpose of a regulation, which is to harmonise requirements across the EU. Many more exemptions to the reuse and refill targets were introduced in the provisional agreement also, notably for perishable beverages and different types of alcoholic beverages."  

According to Ilka Mehdorn, managing partner Berlin at law firm Dentons, packaging formats and materials may need to change to meet the requirements. Mehdorn believes a shift from plastic to paper or fibre materials – with a plastic coating – may occur as paper packaging is exempt from certain obligations. Currently, the regulation requires all packaging to be recyclable by 2030, with criteria defined through secondary legislation. But there are exceptions. For example, food packaging made of wood or wax would be excluded from reuse targets if member states can report recycling rates of over 85%. 

Products get packed, put onto the pallet and shrink or stretch wrapped. The move will push companies towards reusable plastic pallet crates. But there will still have to be a polythene liner for the crate and costs will rise. It’s a knee-jerk reaction to the green lobby

Mehdorn notes that the regulation bans the use of collation films and shrink wrap in grouped packaging. This is a concern for Berry’s Baxter, who argues it will result in a "massive increase in costs for producers".   

"It’s the standard form to dispatch goods," he says. "Products get packed, put onto the pallet and shrink or stretch wrapped. The move will push companies towards reusable plastic pallet crates. But there will still have to be a polythene liner for the crate and costs will rise. It’s a knee-jerk reaction to the green lobby."  

PFAS ban a win for NGOs 

The use of per- and polyfluorinated alkyl substances (PFAS) in food contact packaging will also be banned by 2026, which has been touted as a significant win for environmental NGOs. Zero Waste Europe’s toxic-free circular economy policy officer, Dorota Napierska, said there was relief at the move, adding that it recognised "the urgency of phasing out PFAS from food packaging and prioritising consumers’ health. This will hopefully also send a clear message to food packaging manufacturers that all other substances of concern that we currently find in food packaging should also be eliminated in the coming years".  

But Keller and Heckman’s O’Keeffe explains that the ban is not new and adds: "While the European Parliament introduced a ban on PFAS above certain levels in the draft text, this is something that is in the pipeline already under the REACH legislation. It may, nonetheless, pose challenges for certain sectors of the food and beverage industry. The BPA ban proposed by the European Parliament was removed from the provisional agreement as this is being addressed under the food contact legislation."  

Other types of plastic packaging are set to be phased out altogether. Goodfellow explains: "A number of single-use plastic bans will be implemented in addition to the single-use plastics directive already in force. These will include some plastic packaging applied to loose fruit and vegetables, condiments and very lightweight plastic bags. This again will require businesses to look at their supply chain and potentially change their trading practices."  

Material composition set to change

What plastic packaging does remain on the market will be subject to scrutiny. In the original PPWR draft, contact sensitive plastic packaging needed to contain 10% recycled content. Amendments have reduced this to 7.5%, but it illustrates how businesses will have to react to a changing market. "Packaging formats, materials and used substances in packaging will likely have to change," adds Mehdorn. "In particular, businesses will need to secure their access to recycled content and alternative solutions."  

O’Keeffe adds: "The provisional agreement also introduced the possibility that the European Commission could draw up a legislative proposal permitting the use of bio-based feedstock as an alternative to recycled content recovered from post-consumer waste to meet the recycled content requirements of the PPWR if there is an insufficient availability of recycled plastics coming from suitable technologies complying with the recycled plastics regulation. Before deciding whether bio-based feedback may be used for this purpose, the Commission must first conduct a review of the state of technological development and environmental performance of bio-based plastic packaging, taking into consideration certain sustainability criteria. This may help promote innovation in the food packaging sector."  

"Another headline measure contained in the draft regulation is the reduction of unnecessary packaging – to a maximum empty space ratio of 50% – for transit and e-commerce packaging," notes Ecosurety’s Goodfellow. "This will necessitate scrutinisation of packaging used in supply chains and any logistical consequences that producers have not previously had to consider."  

Until the regulation has been formally passed and guidance issued at member state level, it will be hard for businesses to take specific action. However, familiarisation with the targets and measures that will affect their specific industry will be important at this point

The regulation will become EU law early next year. From there, businesses will have 18 months to phase in the changes. With it will bring more bureaucracy, says Dentons’ Mehdorn. "This will rise significantly, particularly with regards to documentation and reporting, both on industry level and on member state level."  

Goodfellow adds: "Until the regulation has been formally passed and guidance issued – importantly, at the member state level – it will be hard for businesses to take specific action. However, familiarisation with the targets and measures that will affect their specific industry will be important at this point."