EU Packaging Regulation (PPWR) creates compliance challenges for businesses

The European Union’s Packaging and Packaging Waste Regulation (PPWR), which came into effect in August 2026, is causing significant operational and administrative challenges for businesses across Europe. The regulation aims to reduce waste, promote a circular economy, and ensure all packaging is 100% recyclable or reusable by 2030.

Small and medium-sized enterprises (SMEs) have reported heavy burdens due to complex documentation and the requirements of Extended Producer Responsibility (EPR). In some cases, these administrative hurdles have discouraged small retailers from shipping goods across EU borders. In response to these difficulties, the European Parliament’s Committee on the Environment, Public Health and Food Safety (ENVI) is considering amendments, including potential temporary exemptions from certain EPR requirements for micro and small businesses.

The regulation also extends its focus to tertiary packaging, such as pallets and containers. Companies are now required to manage greater transparency regarding the lifecycle, reuse, and disposal of these materials. Experts suggest that businesses should integrate pallet pooling and improved tracking into their compliance and sustainability processes to meet the new standards.