Global Packaging Regulations Set to Drive Sustainability and Operational Change

Tightening packaging regulations worldwide are accelerating the need for companies to rethink sustainability strategies, material choices, and cost structures. As fragmented regulatory frameworks evolve towards more harmonised and stringent rules, the shift is expected to increase scrutiny and operational complexity, with significant implications for supply chains, innovation, and competitive positioning across consumer markets.

“The US is completely revamping packaging regulations, with proposed rules making it tougher for companies to claim that their packaging is green. Meanwhile, the European Commission aims to reduce packaging wastage, wherein e-commerce will have to limit the empty space in packaging to 50% or less. On the other hand, Australia aims to increase the usage of recycled packaging,” said Bokkala Parthasaradhi Reddy, Lead Consumer Analyst at GlobalData.

Stricter rules in the United States

In the United States, new federal proposals and a growing number of state-level regulations are making it increasingly challenging for companies to substantiate environmental claims. The proposed PACK Act would establish a national framework for environmental marketing claims, granting the Federal Trade Commission authority to define and regulate terms such as “recyclable” and “compostable,” replacing the current fragmented system.

At the same time, states are introducing tighter restrictions on materials, particularly per- and polyfluoroalkyl substances (PFAS) in food packaging. Polystyrene foam is also being progressively phased out, with states such as New York and Virginia expanding existing bans. In addition, the Environmental Protection Agency has identified microplastics as a priority contaminant group, signalling potential future monitoring and compliance requirements.

European Union targets packaging waste reduction

In the European Union, the Packaging and Packaging Waste Regulation (PPWR) is set to significantly impact e-commerce and logistics packaging. From August 2026, the regulation will begin to apply, with stricter requirements coming into force by 2030. Packaging used in e-commerce and distribution will be required to contain no more than 50% empty space, including void-fill materials such as air cushions, bubble wrap, foam, and paper padding.

The regulation also addresses misleading packaging designs, such as double walls and false bottoms, and aims to standardise compliance through harmonised calculation methods expected by 2028.

Australia focuses on recyclability and circularity

Australia is also advancing reforms to increase recyclability and the use of recycled content in packaging. Efforts led by the Australian Packaging Covenant Organisation (APCO) aim to address the imbalance between recycling capacity and demand for recycled materials. A clearer extended producer responsibility (EPR) framework is expected to improve participation and support investment in recycling infrastructure.

Global implications for the industry

The regulatory developments in major markets such as the United States and the European Union are expected to have a global impact, influencing not only domestic producers but also exporters and international supply chains.

“With the US and the EU revamping their packaging regulations, companies will have to tread carefully and alter their course of action. This will not apply just to the domestic companies but will have a domino effect across the world, as both the markets are the largest importers of fast moving consumer goods. In addition to the exporters, companies in other markets will have to be prepared to adapt to similar regulations,” Reddy concluded.

Source: PapNews