EU Packaging and Packaging Waste Regulation: Key Updates for the Circular Economy

The EU’s Packaging and Packaging Waste Regulation started on 12 February 2025. It brings in new rules for how packaging is made, uses a simple A/B/C labelling system, and sets higher targets for using recycled materials. There are also new fees for producers, more testing, and regular reporting. These rules have important deadlines in 2027, 2030, and 2038, all focused on cutting waste and improving recycling across the EU. Read on to find out how these changes will affect packaging design, recycling, and the choices made by brands and shoppers every day.

Main Changes Under the PPWR

By 2030, every product container and wrapper sold within the EU must be designed so that at least 70 per cent of its material can be collected, processed, and turned into new products. This benchmark for ease of recycling is known as Grade C recyclability. By 2038, this threshold will rise to 80 per cent (Grade B), with producers encouraged to aim for 95 per cent (Grade A) by selecting materials and designs that facilitate sorting and reprocessing.

The regulation also requires a standardised A/B/C label on all packaging from August 2026, supported by common tests that assess how efficiently each design can be recycled. Clear guidelines for plastics, metals, and paper mean recyclers and consumers alike will know exactly what to expect.

Recycled Content Requirements

To ensure stable demand for recycled materials, the PPWR sets minimum recycled content targets for packaging. PET plastic bottles must contain at least 30 per cent recycled content by 2030, rising to 65 per cent by 2040. Other common plastics such as polyethylene, polypropylene, polystyrene, and PVC must include between 10 and 35 per cent recycled material by 2030, increasing to 25–65 per cent by 2040.

Packaging designed to break down in industrial composting facilities (in line with the EN 13432 standard) does not have to meet these recycled content levels; however, when sold alongside conventional plastics, it must still comply with recyclability requirements.

Material 2030 Target 2040 Target
PET bottles 30 per cent recycled content 65 per cent recycled content
Other plastics* 10–35 per cent recycled content (by polymer) 25–65 per cent recycled content (by polymer)

Extended Producer Responsibility

Under the revised Extended Producer Responsibility system, companies placing packaged goods on the market are required to cover the costs of collecting and recycling their own waste. Fees are adjusted according to design choices: lightweight, single-material packaging or packaging that is easy to separate will qualify for lower fees, while complex, multi-material packaging that is difficult to recycle will incur surcharges.

All producers must report annually on the volume of packaging they sell, the percentage that is actually recycled, and the fees paid. The goal is to reward design decisions that reduce waste and encourage ongoing improvement across the sector.

Implications for Producers and Consumers

Manufacturers will need to incorporate new recyclability standards into their product design processes, conduct regular tests to demonstrate compliance, and submit detailed reports on material use and recycling performance. Early adopters of highly recyclable materials will benefit from reduced fees and enhanced sustainability credentials with both regulators and consumers.

Consumers will find it easier to sort their waste at home, thanks to clear A/B/C grade labels on packaging, which indicate at a glance how easily each container or wrapper can be returned to the production cycle.

Timeline and Next Steps

Over the coming years, businesses can explore advanced sorting technologies, refillable packaging systems, and materials designed for easier end-of-life processing.

We invite you keep learning with us and stay tuned for our upcoming deep dives into making packaging more circular.

Sources

  1. ECHA – Packaging and Packaging Waste Regulation (PPWR)
    https://echa.europa.eu/en-GB/packaging-and-packaging-waste-regulation
  2. EUR-Lex – Regulation (EU) 2023/xxx on Packaging and Packaging Waste
    https://eur-lex.europa.eu/eli/reg/2023/xxxx (consolidated text)
  3. European Commission – Packaging and Packaging Waste (DG Environment)
    https://ec.europa.eu/environment/topics/waste-and-recycling/packaging-and-packaging-waste_en
  4. European Commission – Circular Economy Action Plan (EPR context)
    https://ec.europa.eu/environment/strategy/circular-economy-action-plan_en
  5. EN 13432 Standard – Industrial Compostability Requirements
    https://ec.europa.eu/growth/tools-databases/eurlex/ (search “EN 13432”)
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