In recent years, the management of industrial packaging has become one of the key issues in European environmental policies. Although essential for product protection and distribution, the packaging sector is also one of the main sources of waste in the EU. According to the European Commission, 40% of plastic and 50% of paper used in Europe go into packaging, which accounts for 36% of total municipal waste. The main problem? Waste production is growing faster than recycling capacity. In 2021, Europe generated 84 million tonnes of packaging waste, with a 27% increase in plastic alone over the past decade. This exponential growth has increased pressure on natural resources and greenhouse gas emissions, highlighting the urgent need for transformation in the sector.

To address this challenge, the European Union introduced the EU Regulation 2025/40, which came into force on February 11, 2025. This new regulation, which replaces Directive 94/62/EC, introduces uniform and directly binding rules for all Member States, eliminating regulatory disparities and laying out a clear strategy toward a circular economy model for packaging.

Why Regulation 2025/40 Changes Packaging Management

Until now, packaging and packaging waste management was governed by the Directive 94/62/EC. However, each Member State applied it differently, creating a fragmented and inconsistent regulatory framework. This lack of uniformity caused uncertainty for businesses, increased management costs, and slowed progress toward a circular economy. The EU Regulation 2025/40 was introduced to resolve these issues and ensure a more efficient, harmonized system for packaging management. Its main objectives include:

• Harmonizing regulations among Member States, eliminating market confusion and inconsistencies.
• Limiting the use of virgin raw materials by increasing recycled content in packaging.
• Improving reuse and recycling effectiveness, making packaging more sustainable and truly recoverable.
• Phasing out hazardous substances in packaging, reducing environmental risks and improving recycling quality.

This new regulation marks a fundamental step in reducing the environmental impact of packaging and aligns with the EU’s climate neutrality goals for 2050.

What’s New in Regulation 2025/40: Less Waste, More Recycling, More Responsibility

Ban on Excess Packaging: Binding Waste Reduction Targets

One of the regulation’s top priorities is to contain the exponential growth of packaging waste. The EU has set binding targets to reduce packaging waste production compared to 2018 levels:

• -5% by 2030
• -10% by 2035
• -15% by 2040

This reduction translates into concrete measures to limit non-essential packaging. As of January 1, 2030, certain single-use packaging types deemed unnecessary will be banned, including hotel courtesy mini-packs, plastic trays for loose fruits and vegetables, and ultralight food sachets. These restrictions will force companies to rethink their packaging solutions, encouraging more sustainable alternatives that reduce material usage and waste volume.

More Sustainable Packaging: Recyclability and Recycled Content Requirements

The regulation introduces another major change by imposing stricter design and composition criteria: by 2030, all packaging placed on the market must be designed to be efficiently recyclable, and by 2035, they must be effectively recycled at scale. This means adopting a design for recycling approach, where companies can no longer market packaging made from materials that are hard to separate or recycle. Additionally, the regulation mandates minimum recycled plastic content in new packaging, pushing the industry to reduce virgin material use. For instance, PET beverage bottles must contain at least 30% recycled plastic by 2030 and 65% by 2040. This measure accelerates the transition to secondary raw materials, such as recycled HDPE, derived from unrecoverable packaging, creating new opportunities for the recycling market and encouraging investments in more sustainable supply chains.

Phasing Out Harmful Substances: New Rules for Safety and Recycling

Beyond improving recyclability, Regulation 2025/40 calls for the gradual elimination of hazardous chemicals from packaging. This includes per- and polyfluoroalkyl substances (PFAS), used in waterproof coatings and chemical barriers, which are being banned due to their environmental persistence and health risks. These “forever chemicals” accumulate in ecosystems and are difficult to remove, posing a threat to both recycling processes and biodiversity. Eliminating these substances requires companies to revise packaging composition, adopting safer, regulation-compliant materials without compromising performance. This is especially relevant for the chemical sector, which relies on specialized packaging for hazardous goods and often uses protective linings. The regulation acknowledges such use cases by allowing exceptions for packaging of hazardous materials, but still requires them to become increasingly recyclable and free from banned substances. Companies must redesign their containers using recyclable materials and replace additives or stabilizers that may hinder recovery.

Mandatory Environmental Labelling: Greater Clarity for Businesses and Consumers

Starting in 2026, Regulation 2025/40 introduces mandatory standardized environmental labels on all packaging sold in the EU. The goal is to improve separate collection, reduce sorting errors, and increase recycling rates by providing consumers with clear, consistent information. Labels must clearly indicate:

• The type of packaging material, specifying composition (e.g. PET plastic, HDPE, paper, aluminum, glass).
• Proper disposal methods, indicating the collection stream for each packaging type.
• Presence of mixed or separable components to aid correct disposal and improve material recovery.

This regulation ends the previous patchwork of national systems that confused producers and consumers alike. With a unified European standard, businesses can streamline information and simplify packaging management across borders. Another key point is the ban on misleading environmental claims. Until now, many packages carried generic labels like “recyclable” or “biodegradable” without clarifying their actual recovery process. The new regulation prohibits such claims unless supported by verifiable data on recyclability or compostability. It will also introduce universal pictograms, easily recognizable by consumers, helping them identify packaging materials and sort them correctly. This will reduce sorting errors, improve waste quality, and enhance recycling efficiency.

New Obligations for Producers: How Responsibility Is Changing

Beyond labelling, Regulation 2025/40 significantly strengthens the principle of Extended Producer Responsibility (EPR). Companies placing packaging on the market must also take responsibility after use, financially contributing to collection, sorting, and recycling operations. This means producers are financially responsible for the entire life cycle of packaging, with costs based on the sustainability of materials used. Hard-to-recycle packaging will incur higher fees, while designs following ecodesign principles will be rewarded.

How Can Companies Comply with the New Regulation?

Regulation 2025/40 is not a simple policy update—it’s a structural shift that changes how companies manage packaging. Compliance is no longer optional: it’s essential to avoid penalties, reduce costs, and ensure long-term business sustainability. Companies must rethink the entire packaging life cycle, redesigning, using, and disposing of packaging in line with new recyclability, reusability, and traceability requirements. Key actions include:

• Phasing out non-compliant packaging, replacing it with alternatives that meet recycling and reuse standards. Difficult-to-recover materials must be gradually eliminated.
• Increasing the use of recycled plastic in new packaging to meet the mandatory thresholds and reduce reliance on virgin raw materials.
• Ensuring traceability of packaging by documenting each life cycle stage and providing evidence of sustainability—from production to end of life.

In addition to technical changes, companies must address new financial obligations stemming from the expanded Extended Producer Responsibility (EPR) framework. This transformation presents a challenge—but also an opportunity for forward-thinking companies. Investing in reuse, recycling, and recovery solutions not only ensures compliance but also delivers competitive advantages: resource optimization, waste reduction, and a stronger market position in an increasingly sustainability-focused economy. Acting today means being ready for tomorrow—and improving operational and economic efficiency.