Regulation will continue to drive change in packaging, influencing everything from pack design, including recyclability and recycled content, to supply chain structures, according to Smithers’ report The Impact of Regulations and Legislation on the Packaging Market to 2031.
Over the next five years, designing sustainable packaging will be a key consideration for new pack concepts, with legislation and public pressure driving the focus.
The influential role of PPWR
By 2031, global packaging legislation will focus on the roll-out and implementation of announced regulations, according to the Smithers research.
The European Union’s Packaging and Packaging Waste Regulation (PPWR) is expected to serve as a benchmark for other global legislation.
Major industry players will focus on meeting key PPWR requirements to ensure compliance across multiple regions, while local producers will adapt to local legislative requirements.
Most developed countries currently have active or pending packaging legislation, with packaging waste and food safety identified as key issues to be addressed.
Unlike some other industries, packaging is not primarily being targeted for CO2 reduction or carbon neutrality. Instead, packaging waste and littering are identified as key environmental challenges.
Key legislative principles
The following principles are used in packaging legislation globally, although differences in detail continue to create complexity for multinationals operating across different regions.
Weight reduction is used to minimise packaging waste entering the environment, while reusable packaging allows multiple sales using the same package. Recyclable packaging is intended to enable packs to be converted into usable materials, while mandated recycled content creates a market for recycled packaging.
Deposit return systems (DRS) encourage returns for reuse and recycling, while bio-sourced and renewable materials can reduce reliance on petroleum. Extended producer responsibility (EPR) schemes fund waste management, with modulated EPR fees used to reward the use of environmentally preferred packs.
Waste management infrastructure supports broad collection and reuse, while specific design requirements include measures such as tethered caps. Packaging bans can limit the use of problematic packaging formats, while food and human safety requirements address specific chemicals and impurities, such as PFAS.
Sustainability
Packaging regulations support sustainability through measures based on the principles of ‘reduce, reuse and recycle’. They shift responsibility towards producers, set recycling targets, reduce single-use packaging and support recycling infrastructure.
Extended producer responsibility (EPR) targets producers that influence the packaging placed on the market. It can encourage reductions in packaging, increased recycled content, greater use of refill and reuse models, and more recyclable packaging.
Recycling targets are designed to support recycling systems by generating sufficient volumes of material.
Single-use plastic bans and refill and reuse targets are used to reduce the use of problematic materials and provide longer-term alternatives, often from a litter or pollution reduction perspective.
Plastic packaging taxes can support the development of recycling infrastructure. This can include taxes requiring a specified proportion of packaging to contain recycled content, or fees applied to plastic packaging.
Regional regulatory status
The EU’s PPWR, which became fully applicable on 12 August 2026, replaces the previous directive with a single, binding regulation that applies across member states without national transposition.
In the US, packaging EPR is a state matter. Seven states – California, Colorado, Maine, Maryland, Minnesota, Oregon and Washington – have enacted packaging EPR statutes, with several requiring their first formal producer supply reports around May 2026. Additional legislation is pending in Illinois, New Jersey, New York and Hawaii.
Canada has a similar patchwork of requirements alongside a federal reporting mandate, with roughly nine provinces and territories operating their own EPR programmes.
Asia is also developing its packaging regulation. India’s amended Plastic Waste Management Rules (2026) retain recycled-content targets of 30 per cent for rigid plastic packaging in 2025–26, rising to 60 per cent by 2028–29. The rules also introduce mandatory reuse targets and EPR obligations extending upstream to resin and pellet manufacturers.
China circulated a new Ecological Environment Code in March 2026 and continues to develop standards for recycled plastics.
In Southeast Asia, regulatory development is progressing, although many systems remain in the transition from policy design to implementation. Challenges include limited recycling infrastructure, fragmented waste collection systems, insufficient data reporting mechanisms and the integration of the informal recycling sector into formal EPR schemes.
Smithers said successful implementation will depend on legislation as well as adequate financing, government oversight and stakeholder participation.
Australia occupies an intermediate position. The country has promoted sustainable packaging through the Australian Packaging Covenant Organisation (APCO) and its co-regulatory model, although recent reviews have found that the National Packaging Targets are unlikely to be fully achieved within the original timeframe.
As a result, government and industry discussions are focusing on a stronger EPR framework for packaging, with greater emphasis on producer funding, regulatory certainty and recycling infrastructure.
Industry drivers and trends
The report identifies several trends emerging from packaging regulation. EPR fees are directly related to packaging weight, while reducing pack and product size, eliminating void space and downgauging can reduce weight and associated fees.
Regulations also favour materials that can be easily separated for recycling. This includes reducing adhesives that prevent the separation of dissimilar materials and avoiding laminates and composites.
Reducing labels can lower packaging weight and help sorting equipment detect and separate materials. Reducing printing can also support material sorting and minimise pollutants in recyclate.
The Smithers report also examines the impact of regulatory changes on brand owners and packaging suppliers, including compliance costs, material substitution and strategic responses. It covers regional differences in regulation, including divergence between US state and federal requirements, as well as the potential impact of recyclate shortages on costs and the risk of fraud.
