Tightening packaging regulations across the globe are forcing companies to rethink sustainability claims, material choices, and cost structures. As fragmented rules give way to stricter, harmonized frameworks, the shift signals rising regulatory scrutiny and operational complexity, with far-reaching implications on supply chains, innovation, and competitive positioning across consumer markets, according to GlobalData, a leading intelligence and productivity platform.
Bokkala Parthasaradhi Reddy, Lead Consumer Analyst, GlobalData, comments: “The US is completely revamping packaging regulations, with proposed rules making it tougher for companies to claim that their packaging is green. Meanwhile, the European Commission aims to reduce packaging wastage, wherein e-commerce will have to limit the empty space in packaging to 50% or less. On the other hand, Australia aims to increase the usage of recycled packaging.”
In the US, the proposed federal measures and a growing number of state laws are making it more difficult for companies to substantiate “green” packaging claims. Notably, the proposed PACK Act would establish a national framework for environmental marketing claims, giving the Federal Trade Commission authority to define and police terms such as “recyclable” and “compostable” in a landscape that is currently fragmented by state-by-state rules.
Parallelly, states are accelerating material restrictions, particularly on per- and polyfluoroalkyl substances (PFAS, also known as forever chemicals) in food packaging. Polystyrene foam is also being phased out more broadly, with New York expanding its restrictions to additional applications and Virginia extending its ban to all foodservice vendors from mid‑2026.
Earlier this month, the Environmental Protection Agency confirmed microplastics will be treated as a “priority contaminant group,” signaling potential future monitoring and compliance requirements.
In the European Union, the Packaging and Packaging Waste Regulation (PPWR) is set to materially alter e-commerce packaging practices by imposing a cap on empty space to reduce waste and transport emissions.
From 1 January 2030, packages used in e-commerce, logistics, and distribution must contain no more than 50% empty space, with the broader regulation applying from August 2026. While earlier debate referenced a 40% limit, the adopted framework centers on a 50% threshold. Crucially, the PPWR defines “empty space” to include unoccupied volume and common void-fill materials—such as air pillows, bubble wrap, foam, and paper padding—meaning oversized cartons padded with fillers are unlikely to comply.
The regulation also restricts designs that create a misleading impression of volume, including double walls and false bottoms. Harmonized calculation methods are expected by February 2028 to standardize compliance across EU markets.
Australia is advancing packaging reforms to boost recyclability and recycled content, addressing the disconnect between recycling capacity and weak end-market demand. The Australian Packaging Covenant Organisation (APCO) highlights that subdued demand—driven by cheaper imported virgin plastics—limits recycling investment. A clearer EPR framework is expected to improve participation, ensure fair contributions, and support recycled content uptake.
Reddy concludes: “With the US and the EU revamping their packaging regulations, companies will have to tread carefully and alter their course of action. This will not apply just to the domestic companies but will have a domino effect across the world, as both the markets are the largest importers of fast moving consumer goods. In addition to the exporters, companies in other markets will have to be prepared to adapt to similar regulations.”
