Why Small Businesses Are Worried: Key Pressures and Economic Fears

New European Union packaging rules banning high levels of PFAS “forever chemicals” took effect on Wednesday, according to the European Commission. Under the Packaging and Packaging Waste Regulation (PPWR), any new food-contact packaging entering the market must meet tighter standards to curb long-term health and environmental risks linked to these persistent substances.

EU PFAS Packaging Ban and PPWR Implementation Details

According to the European Commission, the bloc’s executive arm, the new regulations target PFAS chemicals widely used to make paper and cardboard packaging grease- and water-resistant for items like pizza boxes and TV dinners. While consumer exposure from food packaging is usually low, scientists are worried about long-term effects because PFAS accumulate in both the human body and the environment.

The restrictions operate alongside curbs on bisphenol A (BPA) in food-contact materials that took effect across the EU last month. Under the PPWR framework, businesses are not required to recall or destroy packaging or goods already on the market before Wednesday.

Small Businesses Face Red Tape and Cross-Border Costs

While consumers won’t notice any immediate difference, businesses have fiercely criticized the changes. According to the German online retailers’ association Händlerbund, small businesses and online traders believe the additional costs and administrative burdens are too cumbersome.

“Instead of facilitating cross-border trade, the new rules threaten to make it significantly more difficult,” warned Händlerbund, adding that there is no minimum quantity or exception for small businesses. EU lawmaker Elisabeth Dieringer of the far-right Freedom Party of Austria warned on X that the PPWR would impose five-figure costs on medium-sized firms, leaving the Mittelstand with little choice but to “eat or die.”

Several businesses have already paused deliveries to and within the EU. The owner of Monstaas Workshop stated on Instagram that they would need to appoint an authorized representative in every single EU country they send products to, noting that costs of around €300 ($346) per country per year are simply unaffordable. Similarly, Swedish embedded electronic devices maker iLabs Electronics announced on its website that it would halt web shop orders from EU countries because the cost and administrative burden are out of proportion to its direct sales volume. A change.org petition had gathered more than 45,000 signatures by Wednesday morning, calling on Brussels to stop harming micro-businesses.

Packaging Waste Growth and Long-Term EU Targets

Data from the European Commission shows that EU countries witnessed a 20% increase in packaging waste over the last decade. Without PPWR, Brussels projected that discarded packaging would rise by another 19% by 2030, driven by convenience food and online shopping.

Of the 178 kg of packaging waste generated per person in 2023, only 35.3 kg was plastic packaging, and just 42% of that plastic was recycled. Packaging accounts for about 40% of plastic consumption in Europe, according to an EU official who spoke at a briefing.

To combat this growth, the EU established binding targets to cut packaging waste by 5% by 2030 and 15% by 2040. Additional milestones include:

• 2028: Manufacturers must carry standardized labels showing materials and disposal methods.
• 2029: Deposit-and-return schemes for plastic bottles and soda cans will roll out across all EU states.
• 2030: All packaging must be designed to be recyclable, single-use plastic packaging for fresh produce will be banned, and packaging must be kept to a minimum.

EU member states will set their own penalties for non-compliance, with German authorities permitted to impose fines of up to €200,000 ($230,000) for serious breaches.

Frequently Asked Questions

What are PFAS chemicals and why are they banned in EU packaging?

PFAS are “forever chemicals” linked to increased risks of certain cancers and other health conditions. They accumulate in the body and environment, prompting the EU to ban high levels in food-contact packaging under the PPWR.

Do businesses have to destroy existing packaging stocks?

No. Under the PPWR rules, businesses are not required to recall or destroy packaging or goods already on the market before the regulations took effect.

What are the financial penalties for non-compliance?

EU states determine their own penalties. For example, German authorities can issue fines of up to €200,000 ($230,000) for serious breaches of the new packaging rules.