Is the glass half full or half empty when it comes to innovation? We look back at the established topics, top trending topics and emerging trends of 2024 and look ahead to the most important areas of innovation for the new year. We also look at the Ellen MacArthur Foundation’s latest Progress Report and clarify the key challenges of the PPWR. One thing is certain for the new year: packaging will be a top priority!
The big picture
Why does the impression arise, that despite the adoption of the PPWR, nothing or at least too little is happening around packaging innovation? Is it the current state of shock in the packaging market? Or is it because the pressure to change packaging and specifications on a large scale is not high enough? After all, the PPWR was only finally approved by the EU Parliament on 26 November and the Council meeting is still pending. Even if that happens, there is still time until 2030.
The fact that the upcoming changes are associated with relevant conversion costs and often lead to permanent additional costs also plays a decisive role. Without a level playing field, no market participant will be persuaded to make far-reaching changes – especially not in the current difficult economic situation.
Example plastic
The Ellen MacArthur Foundation’s Progress Report 2023 makes it clear that progress in terms of recyclability and the reduction of virgin plastic has so far remained limited, despite numerous initiatives and voluntary commitments by companies in the packaging industry.
The key challenges of the PPWR
Despite the restrictions mentioned above: The European Union’s Packaging and Packaging Waste Regulation (PPWR) was increasingly knocking on the door in 2024 and is now on the threshold. It will move further to the forefront in 2025 and become a key compliance issue.
As part of the Green Deal, the Packaging and Packaging Waste Regulation sets new, strict standards for the reduction of packaging waste and the promotion of the circular economy. Companies that do not fulfil the requirements not only risk fines, but also the loss of market approval for certain products.
There is no way around the PPWR for all stages of the packaging value chain. It is therefore even more important to remember the main fields of action:
- Reductions in material and headspace
- Consideration of future bans, for example around multipacks
- Establishment of the necessary recyclability (design for recycling) including definition and exclusion of supposed “substances of concern” (SoC)
- Development of the necessary recyclate capacities in the plastics sector
All of this must be done while ensuring that the packaging solutions can be processed on the existing machines. However, this requires a great deal of preparation, not least due to the necessary packaging tests and conversions.
Review 2024
Anyone who followed our newsletter articles last year will know that, despite all the prophecies of doom, the industry continued to work successfully on clear innovation priorities in 2024. This revealed established topics, a top trend theme and clear trends.
Established topics: Monomaterial and multilayer
The use of recyclable monomaterials instead of difficult-to-recycle multilayers has been tested in many companies as part of packaging trials. Valuable insights were gained in terms of machinability.
Top trend topic: Use of PCR
Driven by regulatory requirements and consumer wishes, the use of post-consumer recyclate (PCR) has become a key field of innovation. However, with increased demand, the lack of materials suitable for food contact in the polyolefin sector is becoming ever more apparent. In addition, the necessary investments in appropriate recycling technology have not yet been finalised.
Clear trend: Fibre and barrier
Fibre-based packaging, including the necessary barriers, became even more important in 2024. They were primarily seen as a potential alternative if the use of PCR could not be realised to a sufficient extent.
Clear trend: Focus on the CO2 footprint
The CO₂ footprint of packaging became even more of a focus. The growing endeavours of companies to become climate-neutral themselves has an impact on packaging. It is being called upon to make its contribution to this goal.
One could come to the conclusion: All beginnings are difficult. The fact is that when flying, most of the energy is consumed during take-off and landing. Nevertheless, companies must prepare in order to be able to act and provide information in relation to the main fields of action of the PPWR. This applies to all stages of the packaging value chain. This is the only way they can slowly take off from 2025.
Outlook 2025
To take off slowly, we also need leaps and bounds in further developments. We are hoping for innovations in a few key areas in particular:
Improving recyclability
Garbage in – garbage out. To increase the use of recyclates, we urgently need a correspondingly good input quality. To achieve this, we need to make specific changes to the specification in favour of more recyclable materials.
Increased use of PCR
Companies should urgently invest in partnerships and finally also in suitable recycling technologies that make economic and ecological sense. This is the only way to improve access to PCR. In our opinion, the legal framework for this will become more favourable.
Paperisation
Fibre-based packaging will experience an upswing. This is particularly true if they offer even better barrier properties. However, it is also clear that the homework regarding recyclability also applies here.
Bio-based materials
We expect the development and capacity expansion in the area of bioplastics to intensify. This will be driven by the possibility of counting this towards the recyclate usage rate as part of the PPWR.
How much time is left?
In our opinion, many companies still underestimate both the time and the content involved. Even with a conservative estimate, we assume that 15 to 20 per cent of all packaging specifications in the area of primary packaging need to be adapted.
We are certain that the regulator will do everything in its power to achieve the defined objectives despite the new commission. If necessary, it will also reintroduce instruments that have already been discussed, such as credit trading. However, a reduction in the recyclate utilisation rate is not to be expected (even if concessions could be made on the “how”).
The necessary consequences
To master the challenges, companies need an organisational framework and clearly defined ownership. Packaging becomes a matter for the boss.
Innovations to achieve compliance and the legal certainty of our own innovation work are key. This includes the necessary upgrading of the packaging department and better staffing. We already pointed this out here exactly one year ago.
It may be lamented, but the fact is that legal certainty used to cost only a fraction of the time and expertise required today. Some companies have recognised this and have taken the first steps. Others have not even boarded yet. The conclusion is clear: there is still a lot to do.
