The increasing regulation of packaging is putting greater pressure on packaging manufacturers and brand owners to innovate, according to market research company GlobalData. In a recent analysis, the company points to new legal requirements in Europe and other regions of the world that necessitate investment in materials, packaging design, and digital traceability.
The study „Innovating for Packaging Regulation“ identifies the European Packaging and Packaging Waste Regulation (PPWR) in particular, as well as regulations in countries such as Canada, Mexico, China, and Indonesia, as drivers of a global trend towards more sustainable packaging. Research and development, as well as corporate strategies, must therefore adapt to the new requirements at an early stage.
Regulation changes material choice and packaging design
„Extended Producer Responsibility (EPR) laws and Deposit Return Schemes (DRS) are now a reality. They necessitate changes in materials and packaging design in the consumer goods sector. At the same time, companies must adapt to a data-driven world to meet regulatory requirements,“ says Richard Parker, Principal Consumer Analyst at GlobalData.
In GlobalData's assessment, environmental regulations now influence not only material selection but also, increasingly, packaging design. At the same time, pressure is mounting from consumers, brands, NGOs and policymakers to create more resource-efficient packaging.
Six fields of action for packaging manufacturers
The analysis identifies several areas where companies should step up their activities. These include expanding closed-loop material cycles to meet recycled content quotas, developing more recyclable mono-material packaging, and the use of bio-based materials and new barrier coatings as replacements for conventional plastics.
Furthermore, digital product information is gaining importance. GlobalData cites the EU's Digital Product Passport, planned for introduction from 2027, as an example. More energy- and resource-efficient production, as well as adaptation to different national EPR systems, were also among the key challenges.
Companies are preparing for new regulations
According to GlobalData, initial brands have already implemented concrete measures. Suntory and PepsiCo, for instance, have adapted their barcodes for the UK deposit return scheme. Evian has further developed a label-free bottle made from 100 percent rPET with an embossed brand logo, reinforcing the mono-material approach. Additionally, packaging manufacturers such as Tetra Pak, Elopak, and SIG have firmly embedded the circular economy and material innovations into their strategies.
To conclude the analysis, Parker emphasises: „Sustainability and the associated legal requirements are now an integral part of the market environment. They motivate manufacturers to respond to societal expectations and to continuously invest in environmentally friendly innovations.“
He further explains: „Companies should understand their circular economy strategies as a fundamental part of their business and not just as attractive ESG messaging. Otherwise, they risk regulatory difficulties and the threat of being left behind by more proactive competitors.“
Source: GlobalData
