EU Plastic Packaging Legislation: What PPWR Means for Businesses

The EU is tightening its grip on packaging waste and is expecting businesses to act fast. The proposed Packaging and Packaging Waste Regulation (PPWR) is set to transform how packaging is designed, used and tracked.


Unlike earlier directives, this regulation will be directly enforceable across the EU, making compliance non-negotiable. From mandatory reuse and refill systems to stricter recycling targets, the aim is to cut packaging waste at its source and put the industry on track for Net Zero by 2050.


Across many companies, the supply chain accounts for over 80% of greenhouse gas emissions and over 90% of the impact on air, land, water, biodiversity and geological resources, according to McKinsey and Company – and the EU’s Packaging and Packaging Waste Regulation, or PPWR, is aiming to change this.


What is the PPWR?

Introduced in January 2025, the PPWR enforces Extended Producer Responsibility (EPR), requiring producers to recycle 70% of their packaging waste by 2030.


This change in regulation significantly impacts the costs and complexities of using single-use packaging, such as cardboard crates, with what was previously not a problem becoming a considerable logistical concern for businesses.

  • How much plastic used in the EU is in packaging?

    A staggering 40% of all plastic used in the EU can be contributed towards packaging.

  • What percentage of marine litter comes from plastic packaging?

    Yes, 50% of all marine litter originates from plastic packaging.

  • How much plastic waste was generated in the EU per person in 2022?

    That's right, on average each person in the EU generated 186.5 kg of plastic waste. That's more than double the weight of the average person in the EU.

The EU expects that these measures will significantly reduce greenhouse gas emissions, water use and the effects of packaging waste on the environment and health of its citizens.


The key aim is to put the packaging industry on track to reach Net Zero by 2050.


By establishing these new requirements, the EU hopes that the PPWR will build a more consistent and coherent framework for reporting and compliance, streamline processes and provide structure for businesses operating across several countries.


At a glance, here's what the PPWR sets out to do:


  • Prevent and reduce packaging waste, including through the introduction of reuse and refill systems
  • Make all packaging on the EU market recyclable in an economically viable way by 2030
  • Safely increase the use of recycled plastics in packaging
  • Decrease the use of virgin materials in packaging to help set the market on the path towards climate neutrality by 2050


The complications of the PPWR


While new regulations make using single-use plastic more challenging, reusable plastic packaging offers companies the chance to align with the new PPWR.


The robustness and potential features of reusable plastic packaging, which can be designed for its specific purpose, make it much more suited to any supply chain.


However, just like with single-use packaging, reusable packaging is susceptible to loss, misuse and theft within its complex supply chain. This effectively renders what should be a reusable container single-use.


Careful container management is crucial because persistent losses and theft could not only prevent compliance with PPWR, but also cause asset shortages at key sites, leading to shipping delays.


So how can companies manage their fleet of reusable containers to ensure PPWR compliance – and at an affordable price?

Sensize's solution to PPWR complications

As the need to minimize packaging waste increases, the importance of meticulously tracking reusable packaging throughout the supply chain is increasing by the day.


While the upfront costs of reusable plastic packaging may seem steeper, it’s essential to consider the Total Cost of Ownership (TCO), factoring in waste, losses and inefficiencies. When viewed through this lens, reusable options paired with smart tracking technologies prove to be the most cost-efficient and sustainable choice.


Asset tracking can help you gain greater visibility across your supply chain, allowing you to prevent potential issues that could threaten your ability to comply with PPWR.


The benefits of asset tracking


Here’s how asset tracking can help you stay in line with these new regulations – and introduce plenty of other benefits for your business in the process:


  • Improved visibility of your supply chain
  • Informed decision-making based on live data
  • Broader understanding of transport patterns to improve logistics and reduce unnecessary movement


In terms of cost reduction for your business, implementing asset tracking helps by:


  • Reducing the need for maintenance through early detection of issues
  • Minimizing loss, damage and theft across your whole network
  • Preventing customers from stockpiling your packaging
  • Optimizing field manager trips to address problematic areas in your supply chain


Asset tracking is an effective and reliable way to alleviate the pressures of PPWR. Find out more about how Sensize ensures quality in its tracking and get in touch today to book an initial discovery call.


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At the end of the Second World War, American military planners left millions of standardized pallets in Australia. They were bought for a steal by a little-known firm called Brambles. The company set about renting them to manufacturers, growers and retailers who, until then, relied on flimsy one-way pallets. Customers appreciated the higher quality and the convenience of Brambles collecting empties. Reuse proved cheaper than disposal, enabling Brambles to offer a better product at lower cost while turning a tidy profit. The model flourished. Brambles became a giant, running a pool of hundreds of millions of pallets. Many other pooling companies were founded in their wake. Today, billions of reusable containers, from grocery crates to roll cages to boxes for car engines, circle the globe. Prospects for further growth are strong: the fleet of reusable containers remains far smaller than the 100s of billions of cardboard boxes used annually. Environmental goals and regulations such as the EU’s Packaging and Packaging Waste Regulation (PPWR) provide further tailwinds. Yet reality often falls short. Reuse is cheaper only if containers are recovered quickly and redeployed many times. A lost container is a costly one. In open supply chains, losses and delays are routine. Why containers go astray Modern supply chains, whether retail, automotive or electronics, span sites owned by several firms, each with their own IT systems. These systems can track operations locally but are blind to what happens upstream or downstream. Once a container leaves one site, visibility can be lost. This is not only a problem for container management. Firms hunger for information on the whereabouts and condition of goods in transit. Separate company data silos make it very difficult to obtain. Too often, reusable containers are treated as an unwelcome compliance cost, the price of ESG pledges and regulatory diktats. What if, instead, they became a source of profit and competitive advantage? Containers as a digital platform Factories, farms, warehouses and stores may be run by different firms, but they share one thing: a common pool of reusable containers. Crates and pallets circulate through every corner of the supply chain. Once fitted with sensors, they cease to be passive carriers and become roving data collectors, capturing information across organizational boundaries. In doing so, they could dissolve silos and form the backbone of a new layer of digital infrastructure. The promise is clear: a supply chain made visible, predictable and efficient. To achieve it, trackers must meet daunting requirements: cheap enough to ride on low-value containers, smart enough to work everywhere without bespoke infrastructure, and durable enough to last the five to ten years of a container’s life. Meeting those demands would turn an old logistics workhorse into the foundation of tomorrow’s digital supply chain. The Sensize Tracking System Sensize has designed its tracking system around these constraints. It relies on two innovations: Parent/Child networking Cellular connectivity is ubiquitous and requires no fixed infrastructure. But cellular trackers are too costly to fit to every low-value container. Bluetooth trackers are far cheaper, but their short range (around 50 m) limits them to individual sites. Sensize combines the two. Most containers are fitted with low-cost Bluetooth Child sensors. A small fraction carries cellular Parent sensors. These parents collect data from nearby children and upload it via the mobile network. Because the parents travel with the fleet, coverage extends across the supply chain without the need for fixed infrastructure. Collaborative networking Supply chain sites hold many container types, such as crates, pallets and roll cages, often from multiple suppliers. If firms are using Sensize’s system, they can share the load –a parent tracker on a crate can collect data from a child tracker on a pallet, and vice versa. Data is uploaded, decrypted and delivered to the relevant supplier. Costs are effectively pooled, producing broader coverage than any one organization could manage alone. When assets become insights What began in the 1940s as a practical way to reuse military surplus has become one of the most important building blocks of modern logistics. Brambles worked out how to turn leftover wood into profit, while saving customers money. Digitized containers repeat the trick, although now the profit comes from data rather than wood. In an era of regulatory pressure and fragile supply chains, firms that grasp the opportunity and transform their boxes and pallets into roving sensors will not only cut losses but also gain visibility into flows of goods that competitors still struggle to find. What was once seen as a compliance burden may yet become the backbone of a profitable digital platform economy.
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