UK businesses exporting food, drink, household, health and beauty, and personal care products into the European Union are being urged to review the operating models for managing pallets, containers and other transport packaging used across their supply chains as the new EU Packaging and Packaging Waste Regulation (PPWR) is phased in this month.
Tomorrow, 12 August, marks the first step in the introduction of the regulations, with total implementation scheduled for 2030.
The EU’s PPWR introduces a new framework for packaging circularity, including requirements for recyclability, recycled content and packaging minimisation. The PPWR will cover all packaging placed on the EU market, including transport packaging such as pallets, containers and crates. It is intended to reduce the amount of packaging waste in Europe and promote the reuse and recycling of packaging. The EU hopes to drastically lower packaging emissions in this way.
PPWR puts transport packaging firmly in the spotlight. For British exporters, that means pallets and containers can no longer be treated as a low-profile operational issue, because businesses will need to show how those assets move through a genuine reuse system.
Katie Ingham, Commercial Director, CHEP
Although many detailed requirements are being phased in over time, it introduces significant reuse obligations from 2030. These include a requirement for at least 40% of specified transport packaging used within the EU to be reusable within a reuse system, with 100% requirements for certain movements within the same business group or within a single Member State.
A survey of 200 British businesses throughout non-food supply chains, by logistics company Advanced Supply Chain, revealed that 93% have been affected or expect to be affected by the PPWR. The research found:
- 16% have already formatted packaging to comply
- 39% are currently making changes to packaging
- 32% are reviewing and assessing packaging formats
- 6% expect to be affected by the PPWR
Just 7% of businesses reported that the PPWR will have no impact on their packaging.
Stuart Greenfield, UK and European Sales Director at Advanced Supply Chain, commented: “We surveyed businesses across sectors including homewares, fashion, consumer electronics, footwear and many more, and the findings show just far-reaching the EU’s new packaging regulation has become.
“Although the PPWR is an EU regulation, it’s not unusual to see businesses applying PPWR principles to packaging used outside the EU. British businesses want to continue trading seamlessly with customers across Europe, and many are standardising packaging formats to support compliance, control costs and simplify retail logistics across multiple markets.”
Katie Ingham, Commercial Director at pallet pooling leader CHEP, said: “PPWR puts transport packaging firmly in the spotlight. For British exporters, that means pallets and containers can no longer be treated as a low-profile operational issue, because businesses will need to show how those assets move through a genuine reuse system.
“The challenge is that once packaging moves across different sites, partners and markets, visibility can easily be lost. Companies that act now to review their responsibilities, recovery processes and supporting data will be far better placed to manage compliance risk and keep goods moving smoothly across Europe.”
Katie advised that British manufacturers and FMCG exporters to act now and review their logistics models for managing pallets and containers, including their processes, data, recovery systems, repair capacity and responsibilities. This is made all the harder by exports as information will sit across different systems, sites or partners.
She added “British manufacturing companies need to know where pallets and containers go in Europe, whether they operate within a genuine reuse system, who is responsible for recovery and repair, and whether reliable data can be produced.”
CHEP warned that companies that do not comply with the new regulations risk having responsibility incorrectly assigned, relying on estimated rather than verified data for reporting, and facing costs for regulatory breaches.
Research shows that the EU regulation has impacted packaging for 93% of British manufacturers and suppliers throughout retail supply chains, and the packaging EPR has led to repackaging at 70% of businesses, increasing levels of waste for 47% of companies.
As well as adapting packaging to comply with the PPWR, British businesses have also been contending with the impacts of the packaging Extended Producer Responsibility Scheme (pEPR). The scheme has introduced new fees for packaging waste, shifting the costs of managing packaging waste from local authorities to affected businesses.
We’re seeing a growing number of British businesses prioritise packaging strategies that increase levels of recycled content, rightsize packages and focus on lightweight materials. The PPWR and pEPR are driving this trend, but the challenge is ensuring sustainability gains don’t come at the expense of packaging integrity. We expect this to drive innovation in advanced materials that deliver strength and efficiency.
Anthony Brimelow, Co-owner and Commercial Director, Duo
Advanced Supply Chain’s research shows the pEPR has increased repackaging requirements for 70% of businesses, meaning 47% have seen growing levels of packaging waste. 37% also reported that the scheme has led to increased packaging errors, further impacting levels of packaging waste.
Packaging manufacturer Duo supplies retailers and brands across the UK and EU. Duo Co-owner and Commercial Director, Anthony Brimelow, said: “We’re seeing a growing number of British businesses prioritise packaging strategies that increase levels of recycled content, rightsize packages and focus on lightweight materials. The PPWR and pEPR are driving this trend, but the challenge is ensuring sustainability gains don’t come at the expense of packaging integrity. We expect this to drive innovation in advanced materials that deliver strength and efficiency.”
Stuart concluded: “The pEPR is increasing the pressure on businesses to find the right packaging balance across product protection, customer experience, cost control and sustainability. We see this during the pre-retail stages of supply chains, where packaging plays a crucial role in getting products ready for sale.
“As supply chains adapt to the pEPR, we expect packaging waste linked to repackaging to decline. Many businesses are already revisiting their own supplier standards and compliance measures to reduce repackaging requirements, as products move from source of supply through to point of sale.”
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