Analyst Insight: Retail and e-commerce shippers are operating with a significant blind spot. The average shipping package contains 57% empty space, and some categories even exceed 65%. Many operations still lack the tools to measure empty space ratio, track recyclability or validate compliance with new regulations. As these pressures grow, the gap between current packaging performance and compliance is becoming a financial and operational risk.

The European Union’s new Packaging and Packaging Waste Regulation is a binding framework for any company placing packaged goods on the EU market. PPWR sets mandatory waste-reduction targets, a 50% empty-space limit for e-commerce and transport packaging, bans on certain single-use formats, recyclability requirements beginning in 2030, and rising recycled-content thresholds for plastics. With the first conformity assessment due in August, 2026, shippers must understand their packaging performance with precision.

The first step toward PPWR readiness is establishing a clear baseline. Companies need to understand their packaging formats in use, the recyclability of each material, labeling accuracy, and the amount of empty space shipped per order. Without this visibility, it’s difficult to determine which parts of the packaging portfolio fall within the PPWR scope or where redesign work is needed.

Once the baseline is set, operations can begin aligning parcel packaging decisions with PPWR expectations. This includes right-sizing packaging to meet the empty-space limit, shifting toward recyclable formats ahead of 2030, and confirming that plastic packaging meets required levels of post-consumer recycled content. Companies will also need to prepare for harmonized material and disposal labels across the EU, which may require updates to artwork and packaging specifications. Early preparation will reduce disruption as requirements evolve.

PPWR increases the need for a modern packing and packaging strategy, and cartonization is one of several barriers. Many operations still rely on legacy warehouse management system logic that doesn’t reflect the current SKU mix or packing constraints, resulting in poor empty space ratio and making PPWR compliance difficult.

Outdated packaging lineups create similar challenges. Boxes and mailers often remain unchanged, even as the SKU catalog shifts, limiting the ability to right-size shipments or ensure materials are compliant. 

Data gaps add further complexity. Many operations cannot monitor volume utilization, items per box, or boxes per order on a daily basis, and lack the visibility needed to pinpoint SKUs that consistently drive inefficient packing. 

Fixed workflows restrict progress. Manual processes and equipment not designed to support new packaging or tighter constraints reduce flexibility. As PPWR deadlines approach, companies will need better visibility and more adaptable processes to keep pace.

By 2030, PPWR-compliant packaging will be required to access the EU market. The next several years will involve testing new packaging formats, validating recycled content, tightening material reporting, and improving dimensional and packaging data. Many companies will phase out old packaging, update cartonization software, and adopt tools that improve visibility into performance and compliance. Organizations that begin early will refine packaging choices, close data gaps, and secure compliant materials with fewer disruptions.    

Resource Link: https://paccurate.io/

Outlook: Over time, PPWR will reshape how companies design, source and manage packaging. Compliance will become an ongoing discipline supported by better data, right-sizing, cross-functional collaboration, and continuous improvement. Those that treat PPWR as an opportunity to upgrade their packaging strategy will be best positioned to meet future regulations, reduce costs, gain a competitive advantage and lead the market as expectations continue to rise.