If there’s one acronym dominating the conversation in the European packaging and label industry today, it’s PPWR – the EU’s Packaging and Packaging Waste Regulation. Far from being an abstract legislative framework, PPWR is a reality-altering force poised to reshape how labels are designed, produced, applied, and recycled.

This article – the third in our FINAT European Label Forum 2025 recap series – explores how label businesses must adapt to this new regulatory environment. Through insights shared by key speakers and panelists including Francesca Stevens (EUROPEN), Pablo Englebienne (FINAT), Jean-Emile Potaufeux (PRE), Marius Tent (CELAB-Europe), Jan ‘t Hart (AIM Europe/HolyGrail 2.0) and Thomas Reiner (Berndt & Partner), we are able to distill what PPWR and other current regulations mean for the label business today, tomorrow, and beyond.

1. The core challenge: recyclability is no longer optional

PPWR sets a clear deadline: by 2030, packaging that is not designed for recyclability will be banned from the EU market. By 2035, packaging must not only be designed for recyclability, but proven to be effectively recycled at scale.

“If a packaging, including the label, is not recyclable, it will lose market access. That’s the reality,” warned Pablo Englebienne, FINAT’s regulatory affairs manager.

For label printers and suppliers, this means:

• Labels must be compatible with the recycling process of the main body of the packaging unit.
• Materials, inks, adhesives, and other decorations on the labels will need to align with design-for-recycling guidelines currently under rapid development.
• Plastic labels making up more than 5% of a packaging unit must contain post-consumer recycled content.

This raises practical concerns for converters: What label constructions meet the upcoming standards? How will recyclability be assessed across 22 packaging categories? Now is the time to collaborate with your clients and suppliers to test, redesign, and certify solutions.

2. Harmonization, but not yet clarity

While the PPWR is now in force, much remains undefined. Francesca Stevens, Executive Director of EUROPEN, offered a frank legislative update: “There are 40 pieces of secondary legislation still to come – and many critical definitions, like what counts as ‘packaging,’ are still unresolved”.

Key unresolved areas include:

• Is release liner considered packaging or not?
• What qualifies as compostable (home or industrial)?
• Who bears what responsibilities; the brand owner, the label converter , or the raw material supplier?

These uncertainties pose significant compliance risks. Label businesses cannot afford to wait passively. As Francesca stressed: “Despite the uncertainty… it’s still strongly advisable to start this process and put preparation in motion together with your partners across the value chain.”

FINAT’s role here is pivotal: by participating in standardisation bodies and feeding technical input from the industry into policymaking, the association helps ensure that label-specific realities are considered in legislation.

3. Gamechanger technologies: sorting and smart labels

Labels aren’t just part of circular material streams – they can also become enablers of a more intelligent, circular economy.

Jan ‘t Hart introduced the progress of the Holy Grail 2.0 project, using digital watermarks for smart sorting. He said, “We’ve proven that intelligent sorting delivers high purity rates… over 90% detection accuracy across 2.4 million packages”.

For converters, this presents two opportunities:

• Innovation in print: digital watermarking can be integrated without additional printing steps.
• Customer value: smart labels can support brand traceability, transparency, and compliance.

As Jan noted, “Labels are central to the detection mechanism… without the label, the system can’t read the product.”

It’s a reminder that the label’s role is evolving from identifier and marketing tool to information infrastructure.

4. PPWR as business opportunity: CELAB and the urgency to lead

Rather than resisting regulation, some in the industry are embracing it as a catalyst for innovation. Marius Tent of Ceflex and 360packmastery, since 2025 also project manager at CELAB-Europe, summarised the CELAB-Europe 2.0 strategy: a platform aimed at matchmaking in order to scale circular solutions for release liner and matrix recycling.

“It’s PPWR time. There is nothing bigger than PPWR these days,” Marius declared. He emphasised:

• Awareness gaps still plague the industry. Many co-packers and brand owners are unaware recycling solutions for liners exist.
• Scale is key. The more stakeholders join the initiative, the more viable recycling becomes economically.
• Data-driven strategy, with an interactive map of solutions, CELAB offers actionable guidance to label converters and their clients.

PPWR compliance will not be handed down by regulators. It must be co-created by those who know the materials best.

5. Beyond 2030: the strategic implications for the label industry

In a wide-ranging keynote, Thomas Reiner painted the bigger picture: a world of global EPR schemes, material bans, rising carbon accountability, and resource scarcity. “After the automotive and textile sectors, packaging is next. Others will compete for your recycled content,” he warned.

His takeaways:

• Labels must meet criteria for non-toxicity, recyclability, and traceability.
• Brand owners will demand data on carbon, water, and material impact.
• Decoration needs may shift dramatically as secondary packaging is limited, affecting label surface area and visibility.

Label businesses must prepare for an environment where compliance, sustainability, and innovation converge. This means rethinking not just materials, but business models, partnerships, and value propositions.

Conclusion: agility is the new compliance

The new regulatory landscape is not a hurdle, but a roadmap to resilience and relevance. As Pablo put it: “There has to be a flow of information along the supply chain… from raw materials to label printer to brand owner.”

FINAT continues to serve as a unifying platform, offering expertise, advocacy, and practical tools to help the label industry not just survive, but thrive through this transition.

It is through shared knowledge and community platforms like FINAT that we can collectively empower the label industry to meet the challenges and seize the opportunities of the PPWR era.

What’s next?

What are you doing to prepare for PPWR? How is your business adapting to new design and compliance demands? Join the conversation and request your seat at the table at the European Label Forum 2026, taking place May 27-29 in Seville, Spain. For more information, visit: https://www.europeanlabelforum.com/.