New EU Packaging Rules Could Increase Prices, Force Businesses to Halt Foreign Sales

Stricter packaging regulations across Europe are creating significant challenges for businesses, particularly those involved in e-commerce and international trade. The new rules, designed to combat waste and pollution, mandate that companies must prove their packaging is not excessive or unnecessary, and that single-use materials are employed only when absolutely essential.

Companies like "fantazijos.lt," which ships about 400 orders daily, with one-fifth going abroad, are finding the compliance costs prohibitive. "Fantazijos.lt" head Povilas Klusaitis explained that previously, packaging fees were paid only in Lithuania. Now, businesses must pay these fees in every country they ship to, including Latvia and France. "The only ones who will profit are those involved in packaging taxation," Klusaitis stated.

Visvaldas Varžinskas, head of the Advanced Packaging Materials and Technologies Research Center at KTU, noted that packaging constitutes over half of the waste in a typical household bin. While previous directives set general targets for collection and recycling, the new rules impose strict requirements on both packaging and companies. "Whether it's a manufacturer or an importer, everyone plays by the same rules. Everyone generates packaging waste, pollution, and everyone must be responsible for it," Varžinskas said.

The European Commission is now dictating packaging materials, sizes, weights, and labeling requirements. Businesses may need to adapt their packaging designs or invest in new technologies and supply chains. "A lot will depend on the product's packaging, the company's readiness – whether it's enough to change the packaging design, or if new technologies need to be invested in, and the supply chain changed," explained Vilma Slavinskienė, head of the Waste Policy Group at the Ministry of Environment.

For some Lithuanian companies, the new regulations make shipping to other EU countries economically unfeasible. "We realized that it is better for us not to ship to most EU countries anymore, because in each country we will need to have a representative there, declare our packaging there. Economically, it does not pay off at all," said Klusaitis. This has led some businesses to reconsider their international market presence, potentially halting sales in certain regions due to the increased costs and complexities of navigating diverse national legal frameworks.