A regulatory tipping point is reshaping global packaging. From Europe’s sweeping Packaging and Packaging Waste Regulation to the rapid expansion of Extended Producer Responsibility schemes across the US, policy is now dictating design decisions that once sat purely in the marketing or procurement function.
Later this year, the Packaging and Packaging Waste Regulation (PPWR) is set to transform packaging design across Europe. From August, restrictions on Perfluoroalkoxy alkanes (PFA) – often referred to as ‘forever chemicals’ – commonly used in packaging for their durability, but which reduce recyclability, will come into effect. Additionally, by 2030, the regulation requires that all packaging is made recyclable. Together, these measures are prompting brands and producers to rethink material choices early on in the design process, ensuring packaging is created with circularity at its core.
Meanwhile in the US, a growing number of states are expected to adopt Extended Producer Responsibility (EPR) schemes, which establish clearer and more consistent recycling requirements for brands and producers. To date, seven states have enacted EPR legislation – Maine, Oregon, Colorado, California, Minnesota, Maryland, and Washington. Washington’s most recent adoption at the end of last year is particularly significant: from 2026, it will require key implementation steps, including the registration of an appointed Producer Responsibility Organisation (PRO) by March, followed by mandatory producer membership within that PRO.
With this move, the entire US West Coast now operates under an EPR packaging programme. This marks an important milestone in the country’s transition towards a nationwide circular economy, given Washington’s long-standing reputation for political leadership and its ability to drive durable, system-wide change. Looking ahead, several additional states – including Illinois, New Jersey, Connecticut, Nebraska, and North Carolina – are actively progressing towards EPR adoption, signalling continued momentum across the country.
This wave of regulatory change is accelerating the shift toward a circular economy and prompting a growing number of companies to reduce packaging and packaging waste in order to comply with government-led targets.
Packaging innovation in the mainstream
On top of regulatory change, technological innovation is revolutionising the industry. The Digital Product Passport (DPP) is designed to enable reliable data exchange and greater transparency across the supply chain, introduced under the EU’s Ecodesign for Sustainable Products Regulation (ESPR). Last year, the ESPR adopted its 2025-2030 plan, setting out proposals to make DPPs mandatory for priority products from 2027 – including textiles, steel and aluminium – and for all products by 2030. By linking products to a detailed digital record of their lifecycle, the DPP helps producers support regulatory compliance, improve supply chain management, and identify environmental risks, ultimately enabling more informed decision-making.
The industry is also moving toward life cycle assessment (LCA) tools which help brands to compare environmental impact before they choose materials or design formats. This technology highlights which stages of a package’s life cycle contribute most to emissions, waste or energy use, information that helps guide choices around material choice to reduce packaging waste and improve the efficiency of the recycling process.
Finally, technologies around closed loop recycling systems continue to remain integral to the packaging sector, with solutions like Mainetti’s Polyloop keeping plastics within the supply chain for longer without downcycling. Such innovation – along with DPPs and LCA tools – helps companies to further align with circular economy principles while complying with changing regulatory requirements.
A year of critical change
As the packaging industry experiences a regulatory overhaul and a technological revolution, consumers continue to drive further changes. A 2025 McKinsey report found that there is more willingness among young people (Gen-Z and millennials) and higher-income consumers to pay a premium for sustainable packaging. As younger generations are soon becoming the primary consumer base, packaging design is evolving to reflect these expectations by blending brand aesthetics with sustainability at its core.
As 2026 unfolds, packaging decisions increasingly sit at the intersection of regulation, technology and brand value. The drive for regulatory compliance and technological innovation is creating new opportunities for brands to develop smarter and more sustainable packaging solutions. Regulations like the EU’s PPWR and the state-led EPR schemes in the US continue to shape the regulatory landscape that contextualises business strategy, while advances in digital tools and materials enable tangible progress. For both packaging producers and brands, sustainability and design are no longer at odds – they now inform every choice, from concept to end of life.
