Global packaging rules tighten across US, EU, Australia as regulators target green claims, waste – GlobalData

GLOBAL – GlobalData has flagged a major packaging regulatory reset across the United States, European Union, and Australia, with proposed federal measures including the PACK Act targeting green claims, EU’s PPWR limiting empty space in e-commerce packaging, and Australian reforms addressing weak demand for recycled materials.

The shift is reshaping compliance requirements for manufacturers, retailers, and logistics operators. 

According to GlobalData, the changes reflect a broader regulatory reset that is increasing operational complexity and forcing companies to reassess packaging strategies across supply chains and consumer markets.

US: Claims and Materials Tighten

In the United States, proposed federal measures including the PACK Act aim to create a national framework for terms such as “recyclable” and “compostable”, giving regulators clearer authority to assess green marketing language. 

At present, rules vary across states, creating a fragmented compliance environment.

Alongside this, states are accelerating restrictions on polystyrene foam and PFAS (“forever chemicals”) in food packaging. The EPA has also confirmed that microplastics will be treated as a priority contaminant group, signalling potential future monitoring requirements.

EU: Limits on Packaging Waste

The European Union is introducing one of the most comprehensive packaging reforms through the PPWR, designed to reduce waste, improve recyclability, and standardise rules across member states. 

From 2026, the regulation will apply across the EU, with e-commerce and logistics packaging subject to specific design requirements. 

A key measure is a limit on empty space inside packaging, intended to reduce unnecessary volume and transport emissions. The rules also address packaging design practices that may mislead consumers, including double walls and false bottoms.

Australia: Targeting Recycling Growth

Australia is focusing on strengthening recycling systems and increasing the use of recycled content in packaging. 

The Australian Packaging Covenant Organisation has highlighted a structural imbalance between recycling capacity and market demand. 

According to industry analysis, weak demand for recycled materials, partly driven by cheaper virgin plastic imports, has limited investment in recycling infrastructure. Planned reforms to extended producer responsibility schemes aim to address this gap.

Global Impact on Supply Chains

Bokkala Parthasaradhi Reddy, lead consumer analyst at GlobalData, noted that companies will need to adjust strategies carefully as regulations evolve. 

He added that the impact will not be limited to domestic producers, and changes in these markets will have a domino effect across the world. 

As packaging regulation becomes more closely linked to sustainability and trade policy, companies are expected to face higher compliance costs and greater pressure to align packaging design, sourcing, and reporting practices across multiple jurisdictions.

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