Innovation essential to stay ahead of global packaging regulations, says GlobalData

The ongoing evolution of packaging regulation globally, motivated by concerns for the environment and the need to accelerate sustainability within the industry, creates a powerful incentive for packaging manufacturers and their clients to adapt quickly and innovate, particularly as key deadlines set by regulators in markets such as the EU come ever closer, says GlobalData, a leading intelligence and productivity platform.

Moves such as the EU’s Packaging and Packaging Waste Regulation, part of its wider Circular Economy Act, and local efforts in countries from Canada to Mexico to China and Indonesia, mean a truly global shift is underway in expectations of packaging sustainability, requiring R&D departments and corporate strategists to take decisive near-term steps.

Richard Parker, principal consumer analyst at GlobalData, comments: “Extended Producer Responsibility (EPR) laws and Deposit Return Schemes (DRS) are realities that necessitate material and design changes in consumer packaging, as well as adaptation to a data-driven world to ensure compliance.”

Popular and political sentiment combined to create momentum for change

GlobalData’s latest Hot Topic Case Study, “Innovating for Packaging Regulation,” shows that the most important components of today’s packaging legislation are based on motivating the adoption of sustainable models and behaving in an environmentally responsible way. This is as decisive in material choice and design as the packaging’s physical benefits to the product and consumer.

The global concern over packaging waste is translating into public, brand/customer, and governmental pressure to make changes. NGOs and media coverage are influencing all parties. A popular and regulatory push for sustainability is driving innovation in eco-friendly materials and manufacturing, showing that the industry can respond to that pressure for change.

Producers work to get ahead of upcoming targets

Packaging producers are focusing – or need to focus – on several areas of action and innovation to effectively tackle what is expected of them:

• Circular economy integration – They must meet recycled content targets (for example to avoid the extra levies incurred under the UK’s Plastic Packaging Tax for recycled content below 30%), meaning recycled inputs must be secured, possibly including in-house closed loop systems that give full transparency and quality assurance. Associated mandates on reuse/refill also mean changes in production lines and product portfolios.
• Redesign and material innovation – Replacing difficult-to-recycle multi-material packaging with mono-material solutions is key, as is designing packaging for easy disassembly to improve recovery rates and increase the quality of recycled outputs.
• Material substitution – Legislation incentivizes moves away from traditional plastics, driving innovation in bio-derived polymers; new bio-based, or paper and board-derived barrier films and coatings allow substitution in new categories and increased ease of recycling.
• Digital compliance – Regulations will require increasingly standardized on pack and digitally traceable information to support transparency and accountability. The EU’s Digital Product Passports, required from 2027, are an example of this. Labels are becoming essential indicators of compliance.
• Sustainable production – Resource usage must become more efficient, as water, natural gas, and electricity usage face increased scrutiny. Production and recycling of glass and aluminum are highly energy intensive, necessitating innovation in production and recycling line technology.
• EPR navigation – EPR reporting necessitates clarity, and added expense of EPR necessitates decisions over passing costs on to consumers while looking for cost-efficiencies via redesign, weight reduction, etc. They must also prepare for the local variations that will exist – one size will not fit all globally.

Brands already taking proactive steps to get ahead of new rules

In response to the UK’s scheduled launch of a Deposit Return Scheme (“Exchange for Change”) in October 2027, brands have begun preparing drinks labeling for compliant deposit markings and reverse vending compatibility/compliance.

For example, brands such as Suntory and PepsiCo began redesigning their bar code in response to UK-specific 2025 technical specifications for reverse vending machines. Such bar codes contain encrypted DRS-only data layers to prevent false refund claims on non-deposit paid bottles. Evian expanded, in 2025, an earlier trial of a label-free, 100% rPET bottle using embossed branding instead of labels, thereby maintaining a strict mono-material nature. It is compliant with EU standards set for 2038, never mind 2026. Packaging producers such as Tetra Pak, Elopak, and SIG have incorporated circularity as a core strategic goal, with that concept translating into measures such as plant-based polymer research and roll-out, materials with reduced carbon footprint, and aluminum-free aseptic cartons, respectively.

Parker concludes, “Sustainability and associated regulations are a fact of life, incentivizing producers to reflect society’s values and to fund continued green innovation proactively. Consumers expect sustainable packaging and associated measures (with nearly 80% globally stating they do or would use local DRS*), although this must be cost-effective for them and in combination with more intrinsic product benefits.

“Brands should continue to commit to their circular economy strategies as fundamentals of business operation rather than as nice ESG headlines, otherwise they face regulatory difficulties and the risk of being left behind by more proactive competition.”