Impact of PPWR on shrink films

Update October 2026: the PPWR has been formally adopted and this article has been updated accordingly. You can read a complete overview in our guide What is the PPWR?

As we navigate the changing packaging landscape, it is crucial to stay informed about regulatory changes that may affect our sector. The PPWR (Packaging and Packaging Waste Regulation) is one such regulation that is important to be aware of.

Key objectives of the PPWR are to ensure that all packaging is reusable or recyclable in an economically viable manner by 2030 and to encourage the uptake of recycled content, address over-packaging and reduce packaging waste.

Based on these objectives, it is clear that there will also be implications for shrink wrap packaging. In this article on our website, we try to share our current understanding of these possible implications.

Author: Theo Schilder, director of business development at KIVO Flexible Plastics.

When this article was published in November 2023, the PPWR was still a proposal. The regulation has since been finalised: Regulation (EU) 2025/40 was published in January 2025 and has applied in all EU member states since 12 August 2026. The requirements are being introduced in phases. For shrink film, the most important steps fall in 2030.

PPWR: Limitations

One of the most striking measures is the ban on shrink film for multipacks sold to consumers. In the proposal, the text of this restriction read:

''There will be a ban on plastic packaging used at a point of sale to group goods sold in bottles, cans, tins, jars, tubs and packets - designed as convenience packaging - to enable or encourage consumers to buy more than one product. This excludes grouped packaging required to facilitate handling in business-to-business distribution."

In the final regulation, this has been included as a restriction on specific plastic multipack packaging for consumers, from 2030. Grouped packaging needed for B2B distribution is not covered. Therefore, check for each application whether your multipack falls under the restriction.

Especially in Western developed countries, where such packaging is largely discarded and then to be properly recycled, we believe (and studies show) that such a ban is likely to have a net negative impact on the environment. Unfortunately, such concerns have not received sufficient support in the EP.

Recycled content

The shrink packaging that is permitted is the packaging needed to facilitate handling in B2B distribution. This is still a large, mostly unprinted, part of the total current volume. In some markets, such as the UK, (tax) measures are already in force to encourage the use of recycled content in plastic packaging. This is not yet the same as a ‘regulation’, and with the PPWR that has changed.

Under the PPWR, non-contact-sensitive packaging (such as shrink film for bottles, cans, etc.) must contain at least 35% post-consumer recycled material from 1 January 2030 (PCR). This percentage should increase to 65% by 1 January 2040. If the right quality PCR granules are available, the target of 35% is already achievable now. Even without the need to increase thickness further as a compensatory measure. We have successful usage scenarios that demonstrate this. Growing to 65% will be more challenging, both in terms of quality and quantity of available PCR. Together with our customers, we will continue to innovate to succeed in this.

Recyclability

In terms of recycling, we currently foresee no challenges. On the contrary; based on our insights, LDPE shrink packaging is already being recycled on a large scale. Demand for this waste is high and, under the right conditions, closed loops can be set up. Used B2B shrink packaging is collected from retail chains, among others, then sorted, washed and recycled into rLDPE PCR. This can be used again in the production (blown film extrusion) of new shrink film with up to 50% PCR.

Our take on PPWR

When it comes to shrink wrap, especially for B2B distribution, it should be a no-brainer to explore options to maximise PCR content now, while maintaining the same thickness and printability. It will help the environment and it can already bring a financial benefit in some markets (such as Spain and the UK) where tax measures are already in place. It will also help you PPWR-proof your packaging.

Read in our guide What is the PPWR? which other requirements apply, such as recyclability grade A, B and C and the ban on PFAS in food packaging.