Sustainability Insights #25
Europe’s packaging rules are shifting from recycling to rigorous source reduction. With the PPWR and UK taxes looming, discover why waste prevention is the new compliance standard and how SML adapts.
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As packaging rules continue to evolve across Europe and the UK, regulators are increasingly emphasizing circularity, prevention of packaging waste, and the expansion of reusable systems across the supply chains.
The EU’s Packaging and Packaging Waste Regulation (PPWR), in force since February 2025 and applicable from August 2026, sets a clear direction for packaging design across the European market. Rather than simply managing waste at the end of life, the regulation emphasizes preventing waste at the source by limiting unnecessary packaging and reducing empty space in transport and product packaging. It also strengthens requirements for reusable systems, encouraging businesses to move beyond single-use formats and integrate circular solutions into their supply chains. These measures collectively aim to cut material demand, improve resource efficiency, and make packaging truly recyclable at scale.
France’s Anti‑Waste for a Circular Economy Law (AGEC) applies to household, commercial, industrial, and transport packaging, and from 2025 requires all packaging placed on the French market to be included in EPR reporting — including packaging used by foreign companies importing into France.
AGEC mandates a 20% reduction in single‑use plastic packaging by 2025, with 50% of that reduction achieved through reuse, and sets a national trajectory to phase out single‑use plastics by 2040. These requirements are prompting organizations operating in or importing into France to reduce plastic in B2B shipment packaging and prioritize reusable or lower‑impact alternatives.
The UK’s Plastic Packaging Tax applies to plastic packaging components containing less than 30% recycled content, including industrial and transit packaging manufactured in or imported into the UK. The tax is designed to increase recycled content in plastic packaging. In practice, it can also influence a broader shift toward lower-impact choices—whether by raising recycled content or, in some cases, reducing reliance on virgin plastics and unnecessary plastic applications. From a circularity perspective, prioritizing material efficiency and designing single-use formats, alongside higher recycled content, supports the goal of resource-efficient, lower-impact packaging.
Source:
European Commission, GOV.UK
Key takeaways:
The regulatory trend across the EU and UK clearly signals a shift toward less packaging, fewer plastics, and more reuse – not only for consumer goods but also for commercial and transport packaging. Companies operating in these markets will increasingly need to optimize packaging designs and reduce reliance on virgin plastic to stay aligned with emerging requirements.
As EU Member States and the UK continue to strengthen policies around waste prevention, plastic reduction, and promoting circularity, SML is proactively aligning our operations with these emerging expectations. Recently, our production site in Shanghai has expanded its circularity efforts by repurposing waste paper bags as protective packaging for outbound shipments.
By giving this production by-product a functional second life, we reduce the need for virgin packaging materials, minimize upstream waste, and avoid unnecessary packaging inputs. This approach reflects a broader industry shift toward source reduction and reuse across both consumer and B2B packaging flows.
Our initiative demonstrates how operational reuse can meaningfully lower material demand while supporting customer expectations in markets increasingly focused on lower-impact, reusable, and resource-efficient packaging. It reinforces SML’s commitment to responsible resource use, operational efficiency, and ongoing alignment with global sustainability standards.
The EU generated 79.7 million tonnes of packaging waste in 2023, equal to 177.8 kg per person. Although this represents a reduction of 8.7 kg per capita compared with 2022, 2023 levels were still about 21 kg higher than a decade ago, despite improvements in recycling performance.
This long‑term upward trend underscores a critical reality across Europe: recycling alone is not enough. As packaging volumes continue to rise, waste‑reduction and reuse strategies are becoming essential priorities for governments, industries, and supply‑chain partners.
Source: Eurostat
With the Packaging and Packaging Waste Regulation (PPWR) set to apply from 2026, discussions about its scope have resurfaced at the end of 2025. Hundreds of organizations, including recyclers, packaging producers, and environmental NGOs, have urged the European Commission to maintain the current PPWR text, noting that reopening the legislation at this stage may affect regulatory clarity and how businesses plan for future requirements linked to the EU’s 2030 circularity targets.
At the same time, some stakeholders believe certain provisions, such as packaging minimization rules, require more flexibility and more explicit technical guidance. As enforcement approaches, the debate highlights a tension between calls for regulatory stability and demands for targeted adjustments.
With implementation deadlines drawing closer, businesses across the value chain are paying close attention to these developments to understand potential implications for future compliance and strategy.
Source:
Packaging Europe – Is the PPWR about to change?
Packaging Europe – FEVE CEOs call for simpler PPWR packaging minimisation rules
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