EU packaging rules: Why small firms are sounding the alarm

Starting on Wednesday, the European Union is enforcing new rules that ban high levels of PFAS, also known as forever chemicals, in packaging materials. These chemicals, linked to various health issues, are used to make food packaging both grease- and water-resistant. PFAS accumulate in both the body and the environment, making them highly persistent.

The new regulations, part of the Packaging and Packaging Waste Regulation (PPWR), target only packaging that comes into contact with food, aiming to reduce the risk of these chemicals migrating into food and the natural world when disposed of. While the rules do not mandate businesses to recall or destroy existing packaging, they introduce new sustainability standards and require businesses to register their packaging in multiple EU states, often incurring fees.

Small businesses and online retailers are particularly critical of these changes, arguing that the added cost and administrative burden are too burdensome. They warn that the rules will complicate cross-border trade, making it more difficult for smaller enterprises. EU lawmaker Elisabeth Dieringer has expressed concern over the potential financial strain on medium-sized firms, estimating costs to reach five figures.

Several businesses have temporarily halted deliveries within the EU due to the new rules, citing the high costs and administrative burden as prohibitive. A petition on change.org, signed by over 45,000 individuals, calls on Brussels to prevent these regulations from harming micro-businesses. EU data shows a 20% increase in packaging waste over the past decade, and Brussels aims to reduce waste by 5% by 2030 and 15% by 2040, with packaging manufacturers required to use standardized labels indicating recycling instructions by 2028.