EU Regulation (EU) 2025/40 on Packaging and Packaging Waste (PPWR), effective since February 2025, profoundly reshapes the shopping bag industry by enforcing circular economy principles. Replacing the old PPWD directive, it establishes lifecycle-wide rules targeting plastic waste, a critical concern as packaging accounts for 40% of EU plastics use and half of marine litter .

A key impact is curbing lightweight plastic bags. The PPWR mandates member states cut consumption to max 40 per capita annually by 2025 and bans bags below 15 microns except for hygiene or food preservation . This accelerates the decline of single-use PE bags, already evident in European retail chains phasing them out .

The regulation also drives material innovation. It requires all packaging to be recyclable by 2030 and sets recycled content targets—e.g., 30% for PET packaging by 2030 . This boosts demand for shopping bag such as non woven bag, pp woven bag, paper bags and functional biodegradable films, while spurring bio-based plastic development . Additionally, it promotes reuse systems, obliging takeaway businesses to accept customer-owned containers , indirectly encouraging durable reusable bags.

For manufacturers, compliance means redesigning products and investing in sustainable materials. The PPWR thus transforms the industry from plastic-reliant to circular, aligning with EU’s 2050 climate neutrality goal .