The packaging sector in Europe is facing crucial challenges related to sustainability, recyclability, and competitiveness, with Italy at the forefront thanks to the high-quality standards of its paper-based and flexible packaging. The European PPWR regulation sets ambitious targets to reduce waste and promote recyclable materials, while companies focus on innovation, design, and digitalization to stay competitive. By 2025, the sector will need to adapt to new regulations and strengthen its leading role in the transition towards more sustainable packaging
With the revision of European packaging regulations, specifically the PPWR (Packaging and Packaging Waste Regulation), the packaging sector is facing new developments in EU legislation that will influence its growth in the coming years. The PPWR is a highly debated regulation with a long process; industrial associations have worked alongside European institutions in drafting it. Paper and flexible packaging are the materials most affected. To understand what changes with the implementation of the new regulation and the future challenges, we interviewed two representatives from both industries.
The paper industry
We spoke about paper with Massimo Medugno, General Director of Assocarta and member of the Coordination Committee of the Federation of Paper and Graphics Industry (FCG). The paper and board packaging sector is a key pillar of the paper industry. In recent years, driven by phenomena such as the exponential growth of e-commerce, the COVID-19 pandemic, and the subsequent lockdown, it has seen further growth, becoming a driving force. Now, new challenges lie ahead, including the revision of European packaging regulations under the PPWR. “Thanks to the efforts of the entire country system and European organizations, the revision process has managed to shift from the ideology of reuse at all costs to considering recycling, introducing the concept that recycling is just as important as reuse,” explains Medugno. “This will ensure that the new regulation will promote the enhancement of existing recycling systems. It is, after all, proven that in some situations, recycling is even more advantageous than other solutions, as recycled cardboard packaging can be used to create a different type of packaging. The biggest challenges lie in optimizing recycling, particularly for certain material types. It’s important to consider that, due to the transition from fossil materials, the shift is toward renewable packaging and paper. This does not necessarily mean complete replacement by paper, as often a significant percentage of other materials, up to 90 or 95%, is still used. The goal is to better recycle and value all these composite packaging, predominantly paper-based.”
In Italy, this is being done using two approaches, as explained by Assocarta’s General Director. “The first is the introduction of Aticelca standards, which assess the recyclability of packaging, also working on eco-design and the very concept of packaging; the second is through the contribution of Conai, which, in 2025, will differentiate according to recyclability.” At the EU level, “European recyclability standards will also be introduced.”
Global markets and european competitiveness
Recycling is linked to the use of secondary raw materials, namely recycled paper, which Italy is one of the leading users of in Europe. Even here, challenges exist. Considering Italian figures, the collection of paper and cardboard amounts to approximately 7 million tons, of which about 5.3 million are recycled domestically, a significant portion. However, “In 2024, due to sluggish markets and competitive energy costs, exports reached between 1.7 and 1.9 million tons of recyclable paper. This phenomenon risks becoming an additional obstacle for the industry. In reality, the internal capacity to recycle exists, but it is heavily influenced by two factors: energy costs, which are a measure of our competitiveness, and the export of raw materials.”
Furthermore, this export often goes to countries outside the European Union, where the conditions regarding machinery, social aspects, and environmental standards differ significantly. Medugno emphasizes that “Europe needs to find a balance: it must ensure that materials leaving its territory are sent to countries with the same standards as those in the EU. The principle of ecologically and socially responsible management should also apply to materials being exported. This would help recover some capacity and competitiveness.”
If not, there is a risk of distorting the market, with European companies left to bear the costs of sustainability efforts, which are exploited elsewhere to the disadvantage of Europe. “The strategic importance of recycled paper also emerged from Mario Draghi’s report on the future of European competitiveness. The circular economy is important, but it must first provide a future perspective for the European economy. It is essential to create a system where what is collected and processed in Europe becomes part of a European supply chain, and to find a balance when these materials are collected and then re-exported, to avoid creating a competitive disadvantage for our companies.”
Involvement in political decisions
Industry associations have worked alongside national and European policymakers to ensure the sector’s concerns were considered, a task that will continue, according to Medugno. “We must continue to provide full support to the institutions. Several implementing measures on PPWR concerning recyclability and various delicate acts still need approval. It’s essential that the new standards are passed with the collaboration and consultation of the industry to avoid the mistakes made with the previous regulation, where reuse was adopted without considering recycling. The regulations are certainly going in the right direction, but I believe it’s necessary to keep moving forward in this direction, focusing on ongoing standardization activities on recyclability at both national and European levels. These are areas where we must work by involving the entire supply chain, from paper production to processing.”
Even Fefco (European Federation of Corrugated Board Manufacturers) hopes for the PPWR’s implementation to be as harmonized as possible. “The regulation, while providing balance within the 27 EU countries, allows states to make decisions that can influence it without altering its legal structure. Our sector organizations are also tasked with monitoring and engaging with national institutions to ensure that recycling, especially for paper, remains the most advantageous system for economic management.”
The flexible packaging world
With Alberto Palaveri, President of Giflex, we explored the world of flexible packaging. A healthy and vital industry, but like the paper packaging sector, it will need to adjust its industrial policies to comply with European regulations, particularly the PPWR. “The new regulation sets out several guidelines that need to be addressed,” explains Palaveri. “First, reducing packaging that becomes waste, with each country working towards this goal by 2030. In this area, companies producing flexible packaging can offer interesting solutions: our products are the lightest on the market and can provide the best content-to-packaging ratio.”
The PPWR also contains other factors crucial for the sector’s future. “Many parts of the regulation recognize materials that are easier to recycle, particularly paper and mono-material products, such as mono-PE and mono-PP. There is also a focus on packaging efficiency, pushing towards a product conformity that requires the right amount of material used, proportional to the content.”
However, Palaveri points out that the implementing decrees, due within the next two years, are still missing. “The problem for our companies is that although the regulation sets five-year objectives and the principles are clear, the technical specifications needed to design packaging in compliance with the PPWR are entirely absent.” Palaveri provides the example of product recycling: “The regulation includes a table for classifying materials into four recyclability categories—A, B, C, D—but does not specify the criteria for categorization. We only know that some products must exit the market by 2030, while others can continue to circulate. Currently, no company can declare itself aligned with the regulation because, in practice, only general principles exist, which will later be implemented through decrees.” This has created uncertainty among operators.
Focus on design
Compliance with PPWR regulations is the latest challenge for flexible packaging companies, which are already accustomed to managing the complexity of the materials they use and meeting environmental and safety parameters, such as food safety. “Our companies,” continues Palaveri, “will need to not only produce and remain competitive but also be capable of designing.” It is no coincidence that the number of new roles dedicated to design and design management is increasing within these businesses. “They will need to interpret market trends and sustainability demands, helping their clients with their choices. Many of our companies will have to start producing sustainability reports by 2025, a requirement that will eventually apply to small and medium-sized businesses as well. Therefore, it will be crucial to manage this complexity while staying competitive in the market.”
Sector trends: digitalization and communication
Another key development for the sector is digitalization, which is increasingly linked to packaging’s role as a communication tool. Packaging, Palaveri reminds us, is no longer just a container for product information but also a means of communicating a brand’s values to consumers. “I believe that those who can meet their clients’ need to communicate with the end consumer, while maintaining the essential characteristics required of flexible packaging—such as ensuring food safety, being aesthetically pleasing, convenient, and affordable—will have a competitive edge.” Digitalization opens up several opportunities, not just through technologies like QR codes, RFID, and NFC, but also through diversification—the ability to adapt quickly. “Many of these elements are still aspirational, but I believe that in a few years, our companies will be able to turn them into new packaging solutions.” Flexible packaging companies have always been innovative.
“The spread of digital technology,” concludes Palaveri, “may require significant investments, even from smaller companies, who will need to make this additional effort. In other industries, this capability is supported by size. It’s possible that vertical integrations, like those happening in Germany and Switzerland, could come to Italy, but for now, what’s certain is that our companies have the great ability to innovate and stay competitive.”
Ultimately, diversification and speed of adaptation will be key to the success of flexible packaging companies, particularly those that can combine functionality, sustainability, and communication capability. These factors will provide a decisive competitive advantage.