Race to Recycle: Europe's New Packaging Order

New EU laws make packaging costlier and greener, with winners racing ahead.

29 Apr 2025

New EU regulations are reshaping how goods are boxed, labeled, and shipped. Companies are rushing to adapt before the costs pile up. Two major forces are leading the charge: Extended Producer Responsibility (EPR) fees and the Packaging and Packaging Waste Regulation (PPWR). Together, they are making yesterday’s packaging feel outdated.

The PPWR, already in effect since February 2025 and set to be fully enforceable by August 2026, pushes for packaging that is easier to recycle, uses more recycled materials, and can be reused more often. At the same time, EPR fees hit producers based on how much packaging they use and how recyclable it is. The less sustainable the design, the more they will pay.

That is no small bill. UK retailers alone could see annual compliance costs hit £2 billion, according to the British Retail Consortium. Marks & Spencer expects its own yearly EPR bill to top £40 million. The response? Streamlining product lines, ditching hard-to-recycle packaging, and redesigning everything from materials to labels.

“The only way to manage these costs is to design them out before products hit the shelves,” said a packaging lead at Marks & Spencer.

But this is not just about avoiding fees. Early movers are using eco-friendly designs to win over regulators, retailers, and sustainability-minded shoppers. Those who wait may find themselves locked out of key markets or forced into costly last-minute changes.

Still, speed has its risks. Switch materials too fast, and product performance could suffer. For smaller suppliers, the cost of retooling may be a heavy lift.

Yet with deadlines looming and pressure mounting, the industry is picking up pace.

In the scramble to stay compliant, the smartest players are using regulation as a launchpad for innovation. The next generation of packaging will not just be greener. It will be smarter, simpler, and built for a circular economy.