Packaging: The tsunami effect of the new european regulation and the challenges for italian companies
With its entry into force scheduled for August 2026, the PPWR, the new regulation on packaging and packaging waste, will represent a radical change across the entire value chain, both in Italy and beyond, as part of the broader EU Green Deal and Circular Economy Action Plan.
This is highlighted in a study by PwC Strategy&, which analyzed the entire value chain of packaging, from producers to users, identifying impacts and potential changes across various sectors, and quantified an overall cumulative effect that will lead to a projected decrease in Italy of about 15-20% in the volumes of packaging placed on the market and about 10-15% in the volumes of recycled packaging by 2040 compared to 2022.
The regulation is designed to address the growing environmental impact of packaging waste, which in Italy accounts for over 30% of municipal solid waste, shifting from a recyclability-focused perspective to a holistic approach that aims at the entire life cycle, emphasizing prevention, and implementing new stringent reduction, recyclability, and reuse targets.
As companies navigate the new regulatory landscape, they must face fundamental challenges such as rising compliance costs, supply chain adjustments, and material innovation. However, the transition also opens up new opportunities, especially for those investing in sustainable packaging solutions and circular business models.
It will be mandatory for companies to invest heavily in innovation for new technologies in order to meet the PPWR requirements within quite tight timelines and thus be able to fully exploit new business opportunities.
As often happens, European regulations force us to change, in this case, the PPWR will require companies to positively innovate to find more innovative and sustainable 'smart' packaging solutions, within a broader framework of European regulations on sustainability reporting.