Several EU regulations affect packaging suppliers. These regulations are part of a wider initiative, the European Green Pact and Action Plan for the Circular Economy. They aim to reduce environmental impact, improve recycling and promote sustainability.

Statistics on packaging and sustainable packaging

These statistics underline the growing demand for sustainable packaging solutions and the critical role that businesses, consumers and governments play in addressing the environmental impact of packaging.

General packaging statistics:

Global packaging market has been valued at around USD 1 trillion in 2022 and is expected to grow to USD 1.2 trillion by 2027, with a compound annual growth rate (CAGR) of around 3-4%.

The dominance of plastic packaging: Plastic packaging accounts for about 361TPTP3T of all packaging materials globally. However, concerns about plastic waste, especially single-use plastics, are driving a shift towards more sustainable alternatives.

Packaging waste growing every yearThe EU generated 79.3 million tonnes of packaging waste in 2020, with plastic packaging accounting for around 19% of this total and paper/cardboard packaging the largest share at 41%.

Statistics on sustainable packaging:

Consumer preferences: According to a 2021 survey by McKinsey, 74% of consumers are willing to pay more for sustainable packaging. This indicates strong pressure from consumers for eco-friendly alternatives. In another survey, 671TPTP3T of consumers consider recyclability important when buying products

Switch from plastic to paper-based solutions: Due to its recyclability, demand for paper packaging is growing. The European Paper Recycling Council (EPRC) reported that paper recycling rates reached 73.9% in 2021, the highest of all packaging materials

Corporate sustainability objectives: Big brands are adopting sustainable packaging initiatives; for example, many companies have committed to make 100% of their packaging recyclable, reusable or compostable by 2025.

The environmental impact of packaging:

Carbon footprint: Packaging accounts for about 5-10% of a product's total life-cycle carbon footprint, depending on the material used.

Plastic pollution in the oceans: An estimated 8 million tonnes of plastic end up in the oceans every year, much of it from packaging waste. This leads to significant damage to the environment and marine life. By 2050, the oceans are expected to contain more plastic than fish by weight if current consumption and waste patterns continue.

Innovations and trends in sustainable packaging:

Biodegradable and compostable packaging: The biodegradable packaging market is growing, with bioplastic estimated to reach $7.7bn by 2025, reflecting a compound annual growth rate of around 12%.

Refillable and reusable packaging: Companies are increasingly offering refillable or reusable packaging options. Compared to single-use options, reusable packaging has the potential to reduce waste by up to 80% over the lifetime of the product.

Light packaging: Reducing packaging weight by 10% can lead to a 10-15% reduction in carbon footprint.

The impact of the transition to sustainable packaging on producers

The transition to sustainable packaging can have a significant impact on packaging suppliers and manufacturers, influencing different aspects of their business operations, from material sourcing to production processes and costs. Here is an overview of how suppliers will be affected and the key changes they may face:

1. Changing raw materials:

Increased demand for sustainable materials: Packaging suppliers will have to switch from traditional materials (e.g. fossil fuel-derived plastics) to more sustainable options such as biodegradable plastics, recycled materials, paper-based packaging or compostable alternatives such as PLA (polylactic acid).

Supply challenges: Sustainable materials may be harder to source initially, especially if there is an increase in demand. Suppliers may have to establish new supply chains and the cost of these materials may be higher due to limited availability and production capacity.

2. Production process adjustments:

Re-use and update machines: Suppliers may have to invest in new machinery or modify existing production lines, depending on the type of durable materials used.

Innovation and R&D: Manufacturers may need to invest in research and development to develop new packaging solutions that meet both sustainability standards and functional requirements.

3. Regulatory changes and compliance:

Adaptation to environmental regulations: Suppliers have to comply with increasingly stringent environmental regulations, such as the EU directive on recyclable packaging 100% by 2030 or bans on single-use plastics.

Eco-labelling requirements: Manufacturers will have to certify their packaging materials according to eco-labelling schemes (e.g. 'recyclable', 'compostable'), which requires transparency in sourcing materials and compliance with established environmental standards.

4. Sustainability certifications and standards:

Getting certified: To fulfil customer and consumer expectations, packaging manufacturers may need to obtain sustainability certifications for their products, such as ISO 14001, B Corp certification or Cradle to Cradle certification. These accreditations can improve the supplier's marketability.

Align with international standards: As companies seek global compliance, suppliers must ensure their products meet international standards for recyclability, compostability and material safety.

5. Market and customer expectations:

Potential loss of market share: Suppliers that fail to adapt to sustainability trends could lose customers to competitors offering greener alternatives. Brands will be under pressure to align with consumer demand for sustainable products, and packaging suppliers that cannot offer green solutions may struggle to remain competitive.

Sustainable packaging requirements under EU rules

The EU has implemented several key rules and directives to promote sustainable packaging. Here are the key requirements for sustainable packaging under EU rules:

1. The Packaging and Packaging Waste Directive (PPWD) - 94/62/EC is one of the EU's main legislative frameworks for packaging sustainability. Key requirements include:

Prevention: Packaging should be designed to minimise environmental impact by reducing the amount and harmfulness of packaging materials used.

Recyclability: All packaging placed on the market must be designed to be recyclable, reusable or recoverable.

Energy recovery: Where packaging cannot be recycled, the focus should be on recovery processes, such as energy recovery, to minimise landfill disposal.

2. The European Green Pact and the Circular Economy Action Plan (CEAP) set out general principles for a more sustainable and resource-efficient Europe. Packaging-related measures include:

100% packaging recyclable by 2030: The EU aims to ensure that all packaging on the market is reusable or recyclable by 2030, focussing on materials such as plastic and composite packaging.

Reduce excessive packaging: New rules will be introduced to reduce unnecessary packaging and encourage eco-design principles, aiming for lighter, more durable and recyclable materials.

3. The Single-Use Plastic Directive (SUPD) - 2019/904 aims to reduce single-use plastic products, many of which are used in packaging. Key elements related to packaging include:

Marking requirements: Certain products (e.g. sanitary towels, wet wipes and tobacco products) must be clearly labelled to inform consumers about appropriate disposal methods and the environmental impact of waste.

Ban certain plastic packaging: Some single-use plastic products, such as plastic cutlery, plates and expanded polystyrene food containers, are banned on the EU market.

Reducing plastic packaging waste: Member States are encouraged to take measures to significantly reduce the use of single-use plastic packaging by promoting alternatives such as reusable or compostable packaging.

4. Plastic tax (EU Own Resources) - The EU has introduced a plastic tax (effective from January 2021) on non-recycled plastic packaging waste. Key points:

Tax rate: EUR 0.80 per kilogram of non-recycled plastic packaging waste.

Objective: Encourage the reduction of plastic packaging waste and promote the use of recycled content.

5. The Ecodesign Directive - 2009/125/EC promotes sustainable design of products, including packaging. It ensures that products, including their packaging, are designed to:

Energy and resource efficiency: Minimising the environmental impact throughout the entire life cycle of the packaging.

Re-use and recyclability: Packaging should be designed to facilitate efficient reuse or recycling at the end of its life cycle.