The European Packaging Regulation: New Obligations for Distribution in a Circular Economy

The European legislator is taking another step towards a more sustainable internal market with the new Regulation (EU) 2025/40 on packaging and packaging waste (the “Packaging and Packaging Waste Regulation” or “PPWR”). Whereas previous directives allowed room for national interpretation, Europe has now explicitly opted for a directly applicable regulation. This has far-reaching consequences for every link in the distribution chain: from manufacturers to importers, from wholesalers to retailers.

For businesses, this means not only additional obligations, but also new strategic considerations. In this article, we explain what you need to know and highlight the key legal points of attention.

 

The article was published on 21 May 2026 on the IBJ website.

1. From Directive to Regulation

The European Packaging Regulation was adopted on 19 December 2024 and entered into force on 11 February 2025. Unlike the former Packaging Directive, the PPWR is directly applicable in all EU Member States. The European legislator aims to prevent fragmentation between national systems and create a level playing field within the internal market.

The objectives of the PPWR are ambitious and form part of the transition towards a circular economy. Specifically, the Regulation focuses on:

  • reducing packaging waste and unnecessary packaging;
  • promoting reuse, refill systems and recycling;
  • increasing the use of recycled materials;
  • harmonising labelling and reporting requirements.

The Regulation applies to all packaging and packaging waste, regardless of the material used or the sector in which the packaging is used.

2. Every Actor in the Distribution Chain Is Responsible

(Articles 15–23 PPWR)

The PPWR introduces chain-wide responsibility. Not only traditional packaging manufacturers fall within the scope of the Regulation, but also all economic operators involved in placing packaged products on the market and distributing them.

 

2.1. Primary Compliance Responsibility of the Producer

The producer — including both the packaging manufacturer and the company placing a packaged product on the market under its own name — bears primary responsibility for ensuring that the packaging complies with the PPWR. This means that the producer must ensure that:

  • the packaging complies with sustainability requirements (e.g. restrictions on substances of concern, recyclability, minimum recycled content);
  • the packaging is properly designed (“design for recycling”) and complies with future recyclability classes;
  • the necessary technical documentation and conformity assessments are available;
  • the packaging is correctly labelled in accordance with harmonised rules;
  • the required data and reporting are available within the framework of EPR obligations.

The producer is therefore the central actor responsible for ensuring the substantive compliance of packaging throughout its entire lifecycle.

 

2.2. Duty of Care and Verification Obligations of the Distributor

The PPWR imposes its own duty of care and verification obligations on distributors before placing products on the market. Specifically, distributors must verify whether:

  • the packaging bears the required labels and information;
  • the producer has visibly complied with its obligations (e.g. the availability of conformity documentation where required);
  • they are not distributing products which they know, or should reasonably suspect, are non-compliant.

Where a distributor determines that packaging does not comply with the PPWR, it is required not to continue distributing the product and to take corrective measures where appropriate, potentially in cooperation with the producer.

These obligations shift the traditional perception of the “passive” distributor towards that of an active participant with its own responsibilities. From a legal perspective, this translates into increased liability exposure.

 

3. New Sustainability Requirements

3.1. Restrictions on “Substances of Concern”

(Article 5 PPWR)

Packaging placed on the market must be manufactured in such a way that the presence and concentration of substances of concern in packaging materials or packaging components are minimised.

As from 12 August 2026, restrictions will apply, inter alia, to PFAS (“forever chemicals”) in food-contact packaging above certain concentration thresholds. This obligation aligns with the broader European trend towards progressively phasing PFAS out of the market.

Companies using coatings, barrier materials or grease-resistant packaging should therefore assess their material use in a timely manner.

 

3.2. Recyclability Becomes the Standard

(Article 6 PPWR)

All packaging placed on the market must be recyclable. As from 2030, only packaging with recyclability grade A (at least 95% recyclable), B (at least 80%) or C (at least 70%) will be permitted. From 2038 onwards, grade C packaging will no longer be allowed.

For businesses, this means that packaging design and material choices will increasingly need to be assessed from a “design for recycling” perspective.

 

3.3. Minimum Recycled Content Requirements

(Article 7 PPWR)

The Regulation also introduces mandatory minimum percentages of recycled content for plastic packaging.

The exact percentages vary depending on the type of packaging and will be further specified by the European Commission. The first thresholds will apply from 1 January 2030 onwards, with stricter standards following from 2040.

Certain packaging types are excluded from these obligations, including packaging for medical devices, certain pharmaceutical packaging and packaging for dangerous goods.

Businesses will therefore need not only to analyse their own packaging flows, but also to thoroughly screen their supply chains regarding the availability and traceability of recycled materials.

 

4. New Labelling Obligations

(Articles 12–14 PPWR)

The European Commission aims to eliminate the current fragmented labelling systems. As from no earlier than 12 August 2028, packaging will have to bear harmonised labels informing consumers about material composition, proper sorting methods and potential reusability or recyclability. The exact design of these labels will be further developed by the European Commission.

Businesses will need to adapt their packaging communication and product labels in due time.

5. Obligations to Reduce Packaging and Packaging Waste

5.1. Packaging Minimisation and the 50% Empty Space Rule

 (Articles 10 and 24 PPWR)

From 1 January 2030 onwards, packaging weight and volume must be limited to what is strictly necessary for the packaging to fulfil its function. The European legislator is specifically targeting excessive marketing packaging and inefficient e-commerce packaging.

For grouped packaging, transport packaging and e-commerce packaging, empty space may no longer exceed 50% of the total packaging volume as from 1 January 2030. Filling materials such as paper shreds, air cushions or bubble wrap may be considered “empty space”.

For many businesses in the retail and e-commerce sectors, this will require a thorough reassessment of logistics processes and packaging formats.

 

5.2. Ban on Certain Single-Use Packaging

(Article 25 PPWR)

From 2030 onwards, the PPWR bans a number of single-use packaging formats. These include, inter alia, plastic multipacks, plastic trays and bags for fresh fruit and vegetables under 1.5 kg, plastic disposable tableware for on-site consumption in the hospitality sector, disposable bottles in hotel rooms and very lightweight plastic supermarket bags.

 

5.3. Reuse and Refill Systems Become Central

(Articles 11 and 26–33 PPWR)

The PPWR strongly promotes reusable packaging and refill systems. Packaging will only qualify as reusable if it is designed for multiple rotations, can be reused without loss of quality, and complies with specific safety and hygiene requirements.

Certain sectors will have to meet concrete reuse and refill targets. For example, by 2030 at least 10% of certain alcoholic and non-alcoholic beverages must be offered in reusable packaging. By 2040, this target increases to 40%.

Micro-enterprises and companies placing only limited quantities of packaging on the market may benefit from certain exemptions.

For businesses, this may require significant investments in return systems, logistics processes and cleaning infrastructure.

 

6. Extended Producer Responsibility

(Articles 44–47 PPWR)

Extended Producer Responsibility (“EPR”) is a principle under which producers are financially responsible for the waste generated by their own packaging. Producers placing packaged products on the market contribute financially to the collection, sorting and recycling of such packaging waste.

Although this system has existed since the 1990s, with each Member State implementing its own model (e.g. Fost Plus in Belgium), the PPWR now introduces a more harmonised EPR framework. Producers will remain financially responsible for the entire lifecycle of their packaging, including collection, sorting, recycling and waste management. Financial contributions will furthermore be modulated on the basis of criteria such as recyclability, reusability, recycled content and the presence of substances of concern.

Less susainable packaging will therefore lead to higher financial contributions.

It is therefore essential for businesses to establish clear internal data flows and reporting mechanisms.

 

7. Key Compliance Deadlines

  • 12 August 2026: general application of the PPWR and introduction of PFAS restrictions and recyclable packaging requirements;
  • 12 August 2028: introduction of harmonised labelling obligations;
  • 1 January 2030: minimum recycled content requirements, recyclability grades A, B and C, restrictions on single-use packaging and packaging minimisation obligations;
  • 1 January 2038: only packaging with recyclability grades A or B will remain permitted.

 

8. What Can Businesses Already Do Today?

Although several implementing measures still need to be developed, it is already clear that businesses should start preparing now.

a) Identify Your Role in the Supply Chain

The applicable obligations differ depending on whether a company acts as a producer, importer, distributor or fulfilment service provider. Correct qualification is essential.

b) Conduct a Packaging Audit

Map all packaging placed on the market and analyse:

  • materials used;
  • recyclability;
  • presence of recycled content;
  • PFAS and other chemical risks;
  • packaging volumes;
  • labelling;
  • EPR obligations.

c) Reassess Contracts and Supply Chains

Businesses will increasingly need to obtain contractual guarantees from suppliers regarding material compliance, traceability and reporting obligations.

d) Prepare for EPR Reporting

Data management will become crucial. Businesses will need to collect reliable data on material types, weights, recycling performance and market placement across different Member States.

e) Monitor Implementing Measures

The European Commission is currently developing additional technical rules concerning recyclability criteria, labelling, calculation methodologies and registration and reporting systems. These measures will further clarify the practical impact of the Regulation.

On 30 March 2026, the European Commission published guidelines and frequently asked questions (FAQs) providing useful clarification regarding certain aspects and applications of the PPWR.

 

9. Sanctions and Enforcement

The PPWR requires Member States to introduce effective, proportionate and dissuasive sanctions for infringements of the Regulation by no later than 12 February 2027. Although the specific Belgian enforcement mechanisms still need to be developed, businesses should expect administrative sanctions, possible sales bans, mandatory corrective measures or product recalls, as well as reputational and liability risks.

This article is written by

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