Why Companies Must Switch to Sustainable Packaging Solutions

|   Company News

With environmental regulations tightening and consumer demand for eco-friendly practices growing, sustainable packaging is no longer just an ethical choice; it’s a business necessity. The transition from plastic-based packaging to sustainable materials is not only beneficial for the planet but for companies looking to stay relevant and compliant with new standards.

 

This article explains why changes in packaging are required, the impending consequences of sticking with plastic, and introduces an innovative solution that can make this first transition simple for companies.

 

With environmental regulations tightening and consumer demand for eco-friendly practices growing, sustainable packaging is no longer just an ethical choice; it’s a business necessity. The transition from plastic-based packaging to sustainable materials is not only beneficial for the planet but for companies looking to stay relevant and compliant with new standards.

This article explains why changes in packaging are required, the impending consequences of sticking with plastic, and introduces an innovative solution that can make this first transition simple for companies.

 

Legal Regulations Pushing the Change
 

The Packaging and Packaging Waste Regulation (PPWR)

The latest PPWR update, officially published in January 2025 by the EU parliament, aims to ensure that all packaging is reusable or recyclable in an economically viable way by 2030. Under the proposed rules, the European Union (EU) is targeting a significant reduction in packaging waste and promoting practices that align with a circular economy.

These new EU regulations are placing greater emphasis on sustainable packaging practices for companies including recycling guidelines for packaging:

  • Meet Recycling Targets by 2030

Companies must achieve mandatory recycling rates for materials like plastic, paper, glass, and metal. This involves improving collection, sorting, and recycling efforts to recover and reuse more packaging waste.

  • Include Recycled Content in Packaging

Packaging must meet minimum recycled content levels, depending on the material. For example, plastic packaging may need to contain at least a certain percentage of recycled material to reduce the use of new resources.

  • Design for Reuse or Easy Recycling

Packaging should be simple to recycle or reuse. Avoid materials that are hard to separate or recycle and focus on widely accepted materials that support efficient recycling.

  • Phase Out Non-Compliant Packaging Formats

Packaging like single-use plastics or non-recyclable laminates must be replaced with compliant, environmentally friendly alternatives.

  • Meet Stricter Recycling Rules by 2040

By 2040, all packaging must meet advanced recyclability standards and be fully recyclable across the EU. Innovation in materials and waste management will be essential to meet these goals.

  • Avoid Penalties for Non-Compliance

Failing to follow these regulations can lead to fines, restricted access to the EU market, and reputational damage. Complying not only avoids these risks but also enhances consumer trust and demonstrates environmental responsibility.

Failure to comply with these targets could result in substantial fines and restrictions, specifically for companies operating across the EU. This applies to both imports into and exports from EU countries.

 

The Single-Use Plastics Directive (SUPD)

The SUPD has further accelerated the push away from plastic by banning single-use plastic. These regulations aim to reduce the environmental and health impacts caused by such items, encouraging companies to adopt more sustainable alternatives.

To tackle the growing environmental crisis caused by plastic pollution, a comprehensive approach is needed to reduce reliance on single-use plastics and promote sustainable alternatives. The new strategies and regulations are set to help combat plastic waste and encourage companies to adopt eco-friendly practices:

  • Ban specific single-use plastics like straws, cutlery, plates, and polystyrene containers. Companies must switch to eco-friendly materials like bamboo, or paper with penalties for non-compliance.
  • Require clear labeling on products containing plastics, showing microplastic content, recyclability, and disposal methods.
  • Encourage companies to use sustainable materials and reusable systems through subsidies, tax breaks, or grants for compostable packaging, refillable solutions, or zero-waste models.
  • Make manufacturers and retailers contribute to plastic clean-up efforts, invest in better waste management, fund recycling programs, and raise public awareness about plastic waste.

The implementation of SUPD has profoundly impacted companies, forcing them to reevaluate their production processes and start to invest in sustainable solutions. While this shift poses challenges, it also opens the door to innovation and competitive advantage. Companies that take the lead in adopting eco-friendly practices are well-positioned to meet the rising consumer demand for sustainable products.

 

Consequences of Non-Compliance

Companies that do not comply with regulations face serious challenges that can disrupt their operations, impose additional financial burdens and damage their reputation.

  • Trade Restrictions: Packaging that does not comply with stringent EU standards cannot be imported or exported, leading to significant disruptions in supply chains and business operations.
  • Financial Burdens: Non-compliance with packaging regulations often carries a heavy financial toll. Companies may face penalties, fines, or levies tied to the use of non-compliant materials, such as charges for unrecycled plastic waste.
  • Reputation Risks: As consumers increasingly prioritize sustainability, companies that fail to adopt eco-friendly practices risk damaging their brand credibility. Non-compliance with sustainable regulations could lead to backlash from environmentally conscious customers, reduced customer loyalty, and negative publicity.

Failing to address these issues not only jeopardizes current operations but also poses long-term risks to a company’s growth, profitability, and market position.

 

Packaging Categories Most Affected

Packaging regulations apply to all types of materials, but certain categories are under heightened scrutiny, creating significant challenges for companies:

  • Single-Use Plastics: Items like beverage lids, food containers, and lightweight plastic bags are among the first to face restrictions. This is due to their widespread use and contribution to pollution. Bans or limitations on these products force companies to shift to biodegradable or reusable alternatives and prompting innovation in sustainable materials.
  • Group Packaging: Secondary packaging, like cardboard boxes or certain plastic containers, is now subject to revised sustainability benchmarks. Companies must ensure that these materials meet higher recyclable content requirements or can be reused efficiently.
  • Packaging for transport and e-commerce: Materials such as stretch films and pallet wraps must now comply with strict reuse and recycling measures under upcoming targets. These requirements push companies to redesign supply chains, invest in recyclable materials, and enhance waste management practices to meet the new standards, adding operational and logistical challenges.

 

 

Why Make the Switch to Sustainable Packaging Now?
 

  1. Long-Term Cost Advantages

Many companies fear that sustainable packaging is costlier than traditional options—but this isn’t the full picture. Initially, the investment in eco-friendly materials may seem higher. However, reductions in waste management costs, long-term efficiencies in supply chains, and increased consumer loyalty offset these expenses.

  1. Consumer Preference for Sustainability

Consumer behavior has shifted dramatically in recent years. Studies show that today’s buyers consider the environmental impact of a brand before making a purchase. Companies that position themselves as environmentally conscious enjoy improved brand loyalty and customer retention.

  1. Environmental and Ethical Responsibility

Plastic waste is a critical contributor to pollution. The EU reports that plastic waste is posing severe risks to ecosystems, biodiversity, and human health. Companies have a role to play in mitigating these consequences by adopting materials that reduce their ecological footprint.

 

 

A Simple Solution for Companies Looking to Switch – Replacing plastic stretch films
 

Transitioning to sustainable packaging does not have to disrupt your operations. One innovative example is WIN – Wrap It Naturally, a sustainable alternative to plastic stretch film for securing pallets.

Our fiber-based packaging is completely made from certified cellulose fibers, being a 100% natural alternative to plastic stretch films. This makes it a fully sustainable stretch in material without any chemical or synthetic components. 

For additional protection our paper-based packaging can be equipped with a water-repellant, plant-based saturation. The combination of elongation and strength provides a very tight pallet wrapping and due to the rough surface, it does not need additional glueing during the wrapping process.

As WIN material is made of 100% cellulose it is fully printable and can be printed with all kinds of printing technologies. This enables our customers to brand their packed pallets with their logo or print additional transportation information on our wrapping paper.

For the easy handling of our WIN - Wrap It Naturally packaging material we engineered it to be useable on conventional turntable, automatic and hand wrappers. With WIN's high adaptability to different wrapper technologies, we can offer a material that can easily replace plastic stretch film in practice. The different tests successfully demonstrated the material's ease of use, flexibility, adaptability, and resilience under different conditions.

As a cellulose fiber material, WIN offers a negative PCF of -0,27 kg CO2/ kg, as cellulose binds CO2 before processing. Plastic film has an average PCF of 2.2 kg CO2/ kg, emitting CO2. *

This clearly shows the negative impact plastic stretch films have on the environment. We are therefore even more proud that we have developed a product that helps companies to reduce their carbon footprint and support them in their climate strategies with our sustainable single-stretch alternative.

Furthermore, our stretch film alternative is fully compliant with EU SUPD and PPWR regulations, safeguarding your access to European markets and ensuring your business is well-positioned to meet evolving legal standards. Staying compliant not only avoids costly penalties but also builds trust with regulators and customers alike.

Learn more about our cellulose fiber material to replace plastic stretch films here.

 

We offer a range of sustainable packaging materials that support an easier switch to sustainable packaging solutions without interruption of running processes:

 

Take the First Step Towards Sustainability

Sustainable packaging is no longer optional for companies, it’s essential for compliance, competitiveness, and contributing to a cleaner planet. While the challenges may seem daunting, the solutions, like WIN, make the transition easier.

Act proactively to align regulations such as PPWR and SUPD. Not only will it future proof your business, but it will also showcase your commitment to the environment and responsible practices. The time to switch is now. Get in touch with us to discuss how we can support your business to change to sustainable packaging solutions.

 

* Modelling was carried out in Sphera LCA for Experts (Cradle-to-gate) & data base from Sphera

 

 

 

Sources:

www.europarl.europa.eu/RegData/etudes/BRIE/2023/745707/EPRS_BRI(2023)745707_EN.pdf

eur-lex.europa.eu/eli/dir/2019/904/oj/eng

www.weforum.org/stories/2019/01/most-plastic-packaging-is-unrecycled-that-has-to-change/

ec.europa.eu/commission/presscorner/api/files/attachment/874092/Factsheet-Circular%20Economy_Packaging%20and%20Packaging%20Waste%20Regulation_de.pdf

www.europarl.europa.eu/news/de/press-room/20240301IPR18595/deal-on-new-rules-for-more-sustainable-packaging-in-the-eu