New EU packaging regulation PPWR 2025: What retailers and food service providers need to know

The new EU Packaging and Packaging Waste Regulation (PPWR) aims to drastically reduce packaging waste across the European Union and promote the transition to a circular economy. It becomes legally binding on 12 August 2026, with individual provisions entering into force gradually. These include specific requirements for recyclability and reuse.

Food retailers, restaurateurs, and providers of take-away or delivery services, in particular, must prepare for new obligations relating to reusable packaging and return systems.

The new PPWR – officially Regulation (EU) 2025/40 – replaces Directive 94/62/EC and introduces, for the first time, directly applicable legal standards for all EU Member States.

The regulation applies to all packaging and packaging waste generated within the EU, across all sectors and in both B2C and B2B contexts. It focuses on design, materials used, and disposal processes.

Key elements include:

• Binding recyclability standards and labeling obligations
• Reuse and refill requirements for selected product categories
• Extended producer responsibility (EPR): obligations for traceability, reporting, and declarations of conformity

The EU sees this regulation as a key tool for tackling pollution, resource waste, and climate change. Packaging constitutes a significant portion of municipal waste and is often used only once before being discarded – frequently without material recycling. This linear model contributes significantly to CO₂ emissions and ecological degradation. The PPWR is designed to reverse this trend by reducing material usage, boosting recycling rates, and promoting a genuine circular economy.

Key 2040 targets include:

• Reducing packaging waste per capita by 15% (compared to 2018)
• Ensuring all packaging is recyclable (Grades A to C) by 2030
• Introducing mandatory reuse/refill quotas for sectors such as HORECA (Hotels, Restaurants, Cafés)

Adopted by the EU Council on 16 December 2024, the PPWR entered into force on 11 February 2025. It becomes legally binding for businesses on 12 August 2026. As a regulation, it applies directly across all Member States, without requiring transposition into national law. National packaging laws – such as Germany’s Verpackungsgesetz or France’s Loi AGEC – must be adapted or repealed. Businesses must now align directly with EU rules. Provisions like the reuse obligations in gastronomy or bans on specific single-use packaging will roll out gradually until 2030.

The PPWR affects all businesses along the supply chain: packaging producers, brand owners, retailers, and food service providers. Responsibility lies primarily with those placing packaging on the market – producers and importers – who must ensure conformity, traceability, and recyclability. Other stakeholders – such as logistics providers, retailers, and the HORECA sector – must meet strict requirements around packaging selection, labeling, and return systems.

Food retailers are particularly affected, given the high volume of packaging they place on the market – both for fresh and processed goods. They play a central role in implementing the new requirements.

Gastronomic operations – fixed or mobile – are also a key focus of the new regulation. PPWR explicitly targets the HORECA sector, (hotels, restaurants, cafés) while also covering canteens, takeaway shops, and hybrid formats like bakeries with seating or supermarkets offering hot food. This means that the regulation applies to both traditional restaurants and retailers offering food services.

While the PPWR poses challenges for B2B companies, it also opens up opportunities: businesses that invest early in circular packaging solutions can position themselves as sustainable brands – an increasingly decisive factor for both consumers and B2B clients. Reusable systems can enhance customer loyalty by appealing to environmentally conscious target groups. Incentives for returns, deposit schemes, or loyalty programs may encourage repeat purchases. However, rolling out such systems requires clear communication and customer engagement, as disposables are often seen as more convenient.

The key lies in a strategic early review of packaging portfolios, collaboration with suppliers, and effective brand messaging. Companies that see the regulation not just as an obligation, but as an opportunity for innovation and competitive differentiation, will be best positioned to thrive.

Sources: Packaging Ordinance PPWR in the Official Journal, EXPRA Newsletter, Zero Waste Europe, Europen Survival Guide