EU adopts sustainable packaging and recycling rules

The EU has formally adopted its Sustainable Packaging Directive, which will enter into force in June 2026, mandating packaging reduction and recyclability targets for companies.

The European Council’s adoption yesterday (December 16) marked the last step in the EU legislative process, meaning the regulation will now enter into force, giving companies 18 months to comply.

“While many companies are fully preoccupied with preparing for other EU legislation, e.g. the Deforestation Regulation, companies will ignore the packaging and packaging waste regulation at their peril,” warn Marcus Navin-Jones and Ward Overlaet of law firm Crowell.

The law will affect firms in a wide range of sectors, starting with the packaging industry. Packaging manufacturers will be required to increase recycled content in their products, including a minimum percentage of post-consumer waste content. The recycled ratio will be calculated as an average per manufacturing plant and year, but is generally set around 55%, and will go as high as 65% for single use plastic bottles by 2040.

These companies will also have to increase the recyclability of their products, sometimes by changing their design, removing small, non-recyclable parts such as lining or caps. Each packaging product will be given a recyclability grade, which will determine whether or not it is allowed to be placed on the EU market. 

General packaging limitations for companies

Beyond recyclability, the law also mandates a reduction in packaging use, especially plastic packaging – with a wide majority of sectors having to comply. For example, the regulation prohibits single-use plastic packaging for pre-packed fruit and vegetables, food, beverages and condiments consumed within hotels, bars and restaurants, as well as single-use toiletry products in hotels.

“In principle, where packaging is unnecessary, it may be regarded as prohibited,” explain Navin-Jones and Overlaet. “If, for example, the function of the packaging is not to protect or safely store a product, but is merely a means of enticing consumers to buy, it may constitute unnecessary packaging and not be legally permissible.”

Reuse targets

In addition, the law also sets new binding re-use targets for 2030 and indicative targets for 2040, which vary depending on the type of packaging: for instance, 40% of transport and sales packaging will have to be reused by 2040.

That also means that take-away businesses will be obligated to offer customers the possibility of bringing their own containers to be filled with cold or hot beverages or ready-prepared food, at no additional charge.

Finally, the regulation introduces new thresholds for per- and polyfluoroalkyl substances (commonly known as PFAS) in food contact materials.