PPWR

Packaging and Packaging Waste Regulation

Replaces the 1994 Packaging Directive with a directly applicable regulation covering all packaging sold in the EU. Applies to e-commerce parcels, garment bags, and branded packaging. Empty space in e-commerce parcels must not exceed 40% from 12 August 2026.

What it is

The Packaging and Packaging Waste Regulation (Regulation (EU) 2025/40), published in the Official Journal on 22 January 2025, replaces the 1994 Packaging and Packaging Waste Directive (94/62/EC) with a directly applicable regulation, meaning it requires no national transposition and applies uniformly across the EU. The regulation establishes requirements for packaging design (recyclability, recycled content), mandatory labelling including digital labelling via QR codes, and reuse targets, alongside restrictions on unnecessary packaging formats. General application is from 12 August 2026, with a phased timeline for specific provisions extending to 2030 and beyond.

The regulation's scope covers all packaging placed on the EU market, including primary packaging in contact with the product, secondary packaging grouping individual units, and transport packaging. For fashion, this captures polybags for shipped garments, tissue paper, branded shopping bags, e-commerce shipping boxes, garment bags, and protective accessories packaging. The 40% empty space limit for e-commerce parcels, meaning the void space within a parcel must not exceed 40% of total parcel volume, applies from 12 August 2026 and directly affects brands that currently use oversized packaging for presentation purposes.

Who it affects

The PPWR applies to all companies producing, filling, or using packaging for products sold in the EU, with no size threshold or sectoral exemption. A fashion brand shipping a single product in an oversized box to an EU customer is within scope for the space efficiency requirement. E-commerce fashion, which relies extensively on secondary packaging for shipping and often uses distinctive branded outer packaging for customer experience, is among the most directly affected segments.

Luxury and premium fashion brands face particular implications from design restrictions. The PPWR limits the use of packaging elements that are not functional, meaning packaging whose primary purpose is aesthetic rather than protective or informative may require redesign. Brands whose packaging is a significant part of the consumer experience face potential need to demonstrate functional justification for packaging design elements that are currently purely presentational.

Key economic implications

The immediate cost impact from 12 August 2026 is the space efficiency requirement. Brands using oversized e-commerce packaging must either switch to right-sized boxes, requiring packaging inventory changes and potentially new packaging formats across product categories, or demonstrate that void space is necessary for product protection. For fashion brands managing large SKU ranges and diverse product shapes, eliminating excess packaging space requires either bespoke per-product packaging (expensive) or a reduction in packaging variety (operationally simpler but potentially sacrificing presentation quality).

Digital labelling requirements, applying from 2027, create both compliance cost and opportunity. Compliance requires integrating QR code generation into packaging production workflows and maintaining the digital endpoint the QR code links to. The opportunity is that digital packaging labels can carry far more information than print permits and can be updated without reprinting packaging, enabling dynamic communication with consumers and alignment with DPP data infrastructure at low marginal cost.

Recycled content targets, phasing in from 2030 for different packaging types, require packaging suppliers to source certified post-consumer recycled material. Current certified recycled content availability for some packaging substrates, especially flexible plastic and coated paper, is limited relative to anticipated demand. Brands that lock in long-term packaging supply agreements with recycled content commitments before demand exceeds supply may secure preferential pricing; those who delay face potential supply constraints and premium costs as 2030 approaches.

Where things stand

The regulation is in force with general application from 12 August 2026. Fashion brands should treat this date as an operational deadline requiring packaging audit, redesign where necessary, and supply chain confirmation that packaging meets PPWR standards. The empty space rule and design requirements apply from this date. Digital labelling requirements follow in 2027, and material composition and recycled content targets cascade through to 2030. The Commission will publish implementing acts and technical standards for specific provisions through 2026 and 2027.

Official sources