Navigating the New EU Regulation on Recycled Plastics in Packaging

As industrial leaders, we must stay ahead of regulatory shifts that impact how we source, process and deploy recycled plastics in production. The Regulation (EU) 2025/40 (PPWR), which entered into force on 11 February 2025 and becomes fully applicable from 12 August 2026, sets out mandatory recycled content, recyclability, labelling and traceability requirements for all packaging placed on the EU market.

Key Provisions

The regulation mandates minimum recycled material percentages in packaging. For example, packaging that is contact-sensitive (such as food packaging) requires at least 30 % recycled content for single-use PET and 10 % for other plastics. For other plastic packaging the minimum is 35 %, and for single-use beverage bottles the minimum is 30 %.

From 2030 onward, all packaging placed on the market must be recyclable.

The regulatory framework also imposes obligations on traceability of materials, proof of chemical safety, absence of contaminants, and appropriate labelling and information disclosure.

What We Need to Focus On

To meet these requirements, companies must invest in systems that ensure the quality and traceability of recycled streams. This means:

Verifying that recycled input is free from contaminants and meets defined quality standards.

Establishing documentation and traceability protocols that can prove the origin, processing and characteristics of recycled feedstocks.

Ensuring compliance with chemical safety criteria i.e. verifying that additives, catalysts or production residues do not compromise safety.

Adjusting packaging design, manufacturing and supply-chain practices to align with the mandated minimum recycled content and recyclability targets.

Strategic Implications

From a strategic standpoint, compliance can become a competitive differentiator. Companies that embed recycled materials effectively and transparently will have an advantage in public tenders, growing sustainability-driven procurement, and alignment with the broader EU Green Deal objectives. Concurrently, the regulation presents an opportunity for innovation: sourcing non-contaminated virgin production scraps, developing circular-economy feedstocks, and redesigning packaging for easier reuse and recycling.

Challenges Ahead

However, this transition is not without hurdles:

The certification burden is real. We must demonstrate that recycled inputs are traceable and segregated, especially if using production scraps rather than post-consumer waste.

Increased documentation, auditing and testing will be required i.e. polymer compliance checks, migration tests, process and material audits.

Operational costs may rise initially as we adapt infrastructure, supply chains and quality control to meet the standards.

Practical Steps for Implementation

Map your current packaging portfolio, identifying which items will fall under the regulation and which will need redesign or reformulation.

Establish or upgrade traceability systems for recycled input streams i.e. from waste collection, sorting, processing to final product.

Engage with suppliers of recycled material to secure verified, low-contaminant feedstocks and request relevant certifications.

Integrate recycling and recycled-content goals into packaging design from the outset i.e. material choice, structure, ease of separation, labelling.

Monitor upcoming enforcement timelines closely and prepare for audits, certification requirements and supporting documentation to validate compliance.

Final Thoughts

Regulation (EU) 2025/40 sets a rigorous framework for the use of recycled plastics in packaging. It demands that we elevate our practices around material quality, traceability and recyclability. The challenge is significant, but so is the opportunity: to embed circular-economy principles into our operations, unlock innovation in material reuse, and meet evolving stakeholder expectations around sustainability. Acting now prepares us not only to comply, but to lead.

AI-Powered Recycling: Transforming Sorting and rPET Production

The rigid packaging industry is undergoing a technological revolution, driven by the increasing demand for sustainable solutions and artificial intelligence (AI)-driven automation. AI is redefining recycling efficiency, particularly in the sorting process, enabling a high-purity, circular economy for rigid plastics. As industries transition to higher rPET content, AI-powered solutions are essential to maintaining regulatory compliance, operational efficiency, and material quality.

The Challenge of High-Purity rPET Production

Producing food-grade recycled PET (rPET) requires a highly precise sorting of post-consumer PET bottles, ensuring that only food-contact approved plastics are reprocessed. Contamination from non-food PET, coloured plastics, and foreign polymers significantly impacts the safety, performance, and regulatory compliance of rPET. Traditional sorting methods often struggle with accuracy and scalability, making AI-based automation a game-changing solution.

AI-Driven Sorting: A Technological Breakthrough

AI-powered sorting systems analyse bottle characteristics in real-time, dramatically improving sorting precision. Advanced machine learning algorithms and near-infrared (NIR) detection enable:

  • Polymer Identification – Distinguishing PET from other plastics such as HDPE and PP.
  • Colour Sorting – Enhancing stream efficiency by accurately separating clear, blue, and green PET bottles.
  • Food vs. Non-Food Differentiation – Ensuring compliance with food-contact safety standards by eliminating non-food PET contamination.

These advancements significantly improve the quality of rPET feedstock, enabling the production of high-IV, food-grade recycled materials suitable for beverage bottles, pharma, and food packaging applications.

Optimising rPET Production with AI

The adoption of AI-powered sorters offers tangible benefits:

  • Unmatched Sorting Accuracy – Achieving up to 98-100% purity in post-consumer PET bottle separation.
  • Regulatory Compliance – Aligning with EFSA guidelines, which mandate that food-grade rPET feedstock contains no more than 5% non-food PET bottles. Future FSSAI regulations in India are expected to adopt similar benchmarks.
  • Scalability & Efficiency – AI enables high-speed processing of large waste volumes, increasing throughput while reducing manual intervention.
  • Enhanced rPET Quality – AI-driven precision sorting ensures that food-grade rPET retains its strength, clarity, and compliance with packaging performance standards.

AI’s Growing Role in India’s Recycling Industry

AI-powered recycling is gaining traction globally, with Indian, European, and Chinese manufacturers pioneering the development of automated sorting systems. Given India’s 30% rPET content mandate in packaging by 2025-26, implementing high-efficiency AI sorting solutions will be critical in meeting sustainability goals, reducing virgin PET dependency, and strengthening domestic recycling infrastructure.

The Future of AI in Rigid Plastic Recycling

AI continues to evolve, enhancing sorting accuracy, adaptability, and efficiency. Future advancements will refine the ability to identify and segregate complex contaminants, improve circularity, and enable the scalability of closed-loop recycling. As regulations tighten and consumer demand for sustainable packaging grows, AI will play a pivotal role in transforming rigid plastic recycling into a truly circular, high-performance industry.