In 2026, the EU will introduce new rules aimed at cutting plastic waste and encouraging the use of sustainable wrapping — the EU Packaging and Packaging Waste Regulation (PPWR). This article outlines how the regulation will impact businesses, what requirements it sets, and what changes companies should anticipate in their supply chains.

What do the New EU Rules Change

In December 2024, the EU approved an updated directive covering all types of containers — Regulation (EU) 2025/40, known as the Packaging Waste Regulation. It was published in the Official Journal of the EU on January 22, 2025, and officially entered into force on February 11, 2025. Most of its provisions take effect on August 12, 2026.

The new legislative act builds on previous environmental standards, particularly the Single-Use Plastics Directive (SUPD), which banned single-use plastic products. The PPWR extends these requirements to all types of resources used for product packs, including cardboard, wood, and metal.

Businesses need to rethink how they design and produce their packs — from choosing resources to manufacturing methods. The law introduces standards such as design for recycling (DfR), content requirements, and harmonised recycling labelling to make sorting and waste management easier.

Key updates affecting manufacturers, retailers, and suppliers include:

• Inclusion of every type of pack. The new EU packaging rules apply to every form of product wrapping placed on the EU market — from industrial containers to consumer and transport packs. This means even imported goods must comply with the updated requirements.
• Design suitable for reuse. Product wrapping must support easy collection, resource separation, and reuse within a circular system.
• Reused input share. Each plastic unit must contain a defined share of recovered inputs. For example, from 2030, all plastic bottles must include at least 30% reclaimed content. The PPWR also highlights the importance of reusable packaging, which helps reduce waste and lower logistics costs — a concept already being tested by European retailers, particularly in online delivery systems.
• Reduction of space. Firms must optimize box space to avoid shipping excess air. The framework recommends no more than 50% unused space to reduce waste and transport emissions.
• Restrictions on harmful substances. Specific chemicals, such as PFAS, are banned in wrapping used for food or products that may enter natural ecosystems.
• Extended Producer Responsibility (EPR). Businesses that produce, import, or sell goods must cover the costs of collecting and processing their containers and report on compliance.
• Eco-labelling and digital tracking. Businesses should prepare for the rollout of the Digital Product Passport (DPP), which enables supply-chain traceability by tracking component composition and origin.

As a result, manufacturers, importers, and retailers need to manage not only design and recovery but also consider life-cycle assessment (LCA) of their products’ wrapping.

Impact of the New Eco Standards on Manufacturers and Supply Chains

The updated requirements are reshaping logistics, certification, and the system for collecting supplier data. All participants in the supply chain must control scope 3 emissions to limit the environmental footprint of containers across their entire life span. These processes are becoming a crucial part of business preparation for the new eco standards. For Swedish retailers and their suppliers, the new law brings both challenges and fresh opportunities for growth. Let’s take a closer look at how it affects market participants.

Transition to Secondary Materials and Packaging Redesign

The PPWR sets reuse targets — specific indicators defining the share of containers that must be reused by 2030 instead of producing new ones after each sales cycle. This means manufacturers need to switch to renewable resources and advanced production technologies. In practice, this requires them to:

• Limit the use of multi-layer plastics and hybrid substances that are difficult to process.
• Replace plastic and foam with paper, cardboard, or bioplastic.
• Invest in upgraded equipment and certified components.

These changes help organisations comply with the PPWR and minimize the environmental impact of their inputs.

Ensuring Compliance with Eco Standards

Eurostat data show that paper and cardboard make up the largest volume of wrapping waste in the EU (40.4%), with plastic (19.8%), glass (18.8%), wood (15.8%), and metal (4.9%) following.

These figures show that even substances seen as more sustainable — like paper and cardboard — continue to have a considerable environmental impact. This is why companies should follow the Ecodesign for Sustainable Products Regulation (ESPR) — a framework supporting the creation of long-lasting, recyclable, and energy-efficient products and resources.

In addition, firms must follow the Green Claims Directive, ensuring that all “green” statements are supported by verified evidence and independent assessment.

Enterprises are obliged to verify that their containers meet the new environmental requirements by obtaining valid certification and labelling. For example, FSC for paper, PEFC for wood, OK compost or Seedling for biodegradable resources, and CE or Recycling codes to confirm safety and recyclability standards.

This is especially important for retailers working with multiple suppliers. As a result:

• Greater focus is placed on wrapping as a critical element of the supply chain.
• Delays or additional costs may occur while suppliers update their processes.
• Businesses need to regularly verify the validity of supplier certificates.

To avoid disruptions, businesses should establish a structured system for compliance monitoring and communication with suppliers in advance.

Potential Cost Increases and Logistics Adjustments

Switching to eco-friendly inputs change logistics processes, emphasizing the value of Deposit Return Schemes (DRS), reverse logistics, and take-back schemes that enable the recovery of used containers.

In addition:

• Overall spending may rise because eco-friendly inputs, such as recovered plastic and paper, are often more expensive than standard options.
• New standards aimed at reducing space alter how goods are packed and transported.
• Online retailers may face additional expenses for eco-friendly shipping supplies.
• Supply chains become more complex, requiring businesses to track the amount of reclaimed content used, verify labelling, and report regularly.

Despite the potential rise in costs, firms can offset part of the impact through lightweighting and packaging optimisation, which help reduce material consumption and transportation expenses.

The Role of Marketplaces and Retailers

Marketplaces and large retail networks are becoming key players in implementing the new eco standards. In the past, manufacturers were primarily responsible for meeting packing standards, but the obligation now spans the whole supply chain.

Marketplaces can:

• Request documentation from suppliers verifying that their wrapping adheres to PPWR rules.
• Introduce internal monitoring systems to prevent non-compliant products from entering the platform.
• Collaborate only with suppliers that can prove the provenance of their components and deliver the required documentation.
• Inform consumers through clear labelling, such as “eco-friendly” or “recyclable.”

These actions help increase transparency, reduce risks, and strengthen customer trust. Modern platforms like ServiCom make this process easier by connecting verified partners, enabling collaboration, and ensuring secure transactions all in one place.

Examples of Sustainable Packaging in Sweden

Swedish organisations are actively adopting innovative solutions, with fibre-based packaging vs. plastics being one of the most notable trends. Some brands are also testing mechanical vs. chemical recycling technologies to improve waste processing efficiency and material reuse. Let’s look at a few concrete examples.

• IKEA. In its 2024 financial report, IKEA continues to emphasize waste reduction. One of its signature approaches is the “flat-pack” concept — products are delivered disassembled to save space during transportation. The company also develops a circular economy model, giving products a “second life” through repair, resale, or recovery. This strategy helps reduce waste and use resources more efficiently.

• H&M Group. H&M takes a well-rounded approach to its wrapping strategy, progressively cutting volume, refining design, and adopting reclaimed inputs. By 2030, the company intends to use only reclaimed or FSC-certified substances for its product enclosures. As early as 2020, H&M introduced a new packing system across several of its brands, replacing plastic bags with paper ones — significantly reducing plastic use in stores.
• Clas Ohlson. The Clas Ohlson retail chain is also actively reducing packaging-related environmental impact. The company is switching to recycled cardboard, minimizing plastic use, and optimizing deliveries. Together with suppliers, Clas Ohlson works to ensure components are environmentally safe and waste is kept to a minimum.

These examples demonstrate that Swedish companies are already implementing sustainable wrapping practices. As a result, when the new PPWR rules take effect, such retailers have a clear competitive advantage and are better prepared to adapt to upcoming requirements.

Recommendations for Businesses

According to the L.E.K. 2025 Packaging Study, 85% of organisations see their packing strategy as crucial to brand performance. The highest importance is attributed by mid-market players (64%) and tier 1 brands (65%), which view sustainable packaging as a key part of their competitive strategy. Findings reveal that investing in green materials supports customer loyalty, strengthens brand positioning, and increases sales.

To meet PPWR requirements efficiently and ensure a smooth shift to sustainable wrapping, businesses should take a phased approach:

1. Conduct an audit. Start by analyzing the materials currently used, the amount of space in packaging, and its structural complexity. Check whether your containers align with future standards — are they recyclable, what portion is made from reclaimed inputs, and do they carry the right labelling?
2. Set clear goals and an action plan. Define clear goals — for instance, achieving complete recyclability of your wrapping by 2030. Outline the transition steps: material substitution, testing of bio-friendly packs, and volume reduction. Plan the budget, timeline, and expected impact on cost and margins to avoid financial risks.
3. Enhance materials and logistics management. Reducing unused space in boxes and parcels can help minimize supply and transport costs while reducing emissions. Explore reusable or collapsible containers, particularly for the B2B market. Reassess logistics processes — choose suppliers closer to production sites and shorten transport distances.
4. Engage suppliers and verify certifications. Coordinate material requirements with partners, including reclaimed content, recyclability, labelling, and return processes. Request compliance certificates and audit results to prevent non-compliance with new rules and reduce financial or reputational risks.
5. Communicate your sustainable strategy. Share your environmental efforts with customers to build trust and loyalty. Use clear messages, such as “We use only recycled materials.” Transparency and regular progress reports make your brand stronger and more recognizable.
6. Monitor changes and continuously improve. Since new requirements are being phased in until 2040, it’s essential to stay informed about regulatory updates, technological innovations, and supply chain changes. While the transition may require investment, it ultimately leads to long-term benefits — lower transport costs, reduced waste, and a stronger brand image.

Step-by-step action helps companies transition smoothly to the new standards, improve operations, and build a reputation as responsible market players.

Conclusion

The new EU packaging regulation offers businesses an opportunity to build a more transparent, sustainable, and economically efficient operating model. What once was a technical aspect has turned into a strategic element that drives consumer and partner trust.

For organisations, the key is not to wait for deadlines but to act early: conduct audits, update supply chains, and explore innovative solutions. Those who prepare in advance will be better positioned to meet the new standards and gain a long-term competitive advantage.