The new legislation on reusable packaging, in the EU, does not convince anyone

Ambitious new proposals that could substantially reduce packaging waste across the European Union are facing criticism from restaurant groups, who believe the plans do not take into account the realities of food production and consumption.

As reported by Helen Roxburgh, in FCSI, the extensive Packaging and Packaging Waste Regulation, published by the European Commission in November, establishes recommendations to reduce waste, reduce excess packaging and promote the use of reusable materials.

The new regulations will have a great impact on the European foodservice, if they are adopted as stipulated in the Regulation. For example, by 2030, a fifth of takeaway drinks should be served in reusable or refillable containers, rising to 80% by 2040.

Other recommendations require that the 10% of take away containers be reusable, increasing to 40% in 2040, reducing unnecessary packaging of fruits, vegetables or multipacks, and using only compostable plastic bags.

"The European Commission's proposal on the review of the EU Packaging Regulation provides a good basis for measures to address packaging waste in general, including binding waste prevention and reuse targets for specific sectors," said Larissa Copello, responsible for packaging and reuse policies at Zero Waste Europe. "These objectives are imperative if the EU wants to promote waste-free and resource-saving practices and move away from habitual and wasteful practices."

The European Commission's plan is to keep the materials for as long as possible in a "circular" system. Without changes, the EU predicts that packaging waste will increase by another 19% by 2030.

However, there are experts who have accused the EU of a take-it-or-leave-it approach. They argue that the proposals put too much emphasis on reusable packaging at the expense of other environmentally friendly options, such as single-use paper packaging, and overestimate the durability of reusable packaging.

"A widespread shift to reusable systems would require a huge investment by restaurants in new washing and drying infrastructure, sorting stations, anti-theft systems, warehouse systems and renovations, as well as increased operating costs in the form of of additional labor (for washing), storage (for storage of reusable systems), water, detergents and energy expenditure," said Matti Rantanen, director general of the European Paper Packaging Alliance. «Given that the average profit margin of a fast food restaurant is 6-9%, it is not an exaggeration to say that this could be a fatal blow for many companies in the sector»

 According to the consulting firm Kearney, it is estimated that the initial investments to achieve reuse on a sectoral scale could be up to 20 billion euros. It also warns that the proposals could cause the sector to refocus on plastics. "By imposing reusable packaging, the EU would see a flood of hard plastic products on the market, many of which have a low reuse rate, below 10 uses for the cheapest ones imported from outside the EU," he adds. .

Take away food packaging has become increasingly important as consumer habits change. Kearney says that around 70% of foodservice sector revenue comes from takeout orders, a trend accelerated by the pandemic.

 Marco Musso, from the European Environment Office, has counter-argued, saying. "To tackle the uncontrolled growth of packaging waste, the EU needs ambitious waste prevention and reuse, especially in the food and drink sectors, which account for two-thirds of the total packaging market in Europe."

In the Kearney report, researchers concluded that additional annual operating costs would range from 0.5% to 7% of projected restaurant sector revenues by 2030.

Analysts say consumer habits could also erode companies' bottom lines, warning that "when consumed outside the home, the average consumer does not typically recycle packaging waste," and if they wish to do so they often face lack of public recycling facilities.

It concludes that a mix of compostable, recyclable and reusable materials is best for reducing waste, with different rules applied for dine-in and dine-in orders. The Food Drink Europe association has stated that it "supports the objective" of reducing waste, but urges the European Commission to "consider the needs of SMEs, which form the 99% of the EU food and drink sector."

The organization, which represents 290,000 companies in Europe, has stated that planned requirements on reuse only apply when supported by clear evidence of environmental benefit.

 Faced with such a situation, several EU countries have already begun to implement their own legislation, such as France, which has introduced an "anti-waste" law that prohibits single-use plastics. Many brands have also begun to introduce environmentally friendly packaging and measures; in part, to comply with national laws. 

In an open letter to the European Commission in April, companies such as McDonald's, Yum! o Baskin Robbins and packaging manufacturers have stated that “the rush to find a simplified solution to a complicated situation will only make the problem worse.” They claim that complying with regulations on reusable packaging could require the consumption of “an additional four billion liters of water each year” and more intensive use of energy due to the need to wash and dry products. The letter urges “decision makers at EU level to pause, evaluate the increasingly significant data and reflect on the best way forward.”

 A coalition of 81 organizations, including Zero Waste and WWF, have warned that "lobbying by the single-use packaging industry and the quick-service restaurant sector is undermining the need for reuse as a driver for waste prevention, resource conservation and climate protection.

Environmentalists have also expressed concern that over-reliance on compostable paper packaging, sometimes presented as an alternative to reuse, is putting pressure on forests.

“Some in the single-use packaging industry are intentionally spreading misconceptions about hygiene, safety and food waste to advocate for the perpetuation of current wasteful practices,” Musso said.

The EU says that by 2030 the directive will reduce greenhouse gas emissions from packaging to 43 million tonnes, compared to 66 million, if legislation is not changed, almost as much as Croatia's annual emissions, and says that water use will be reduced by around one million cubic meters.

The Commission's proposal document, which is being considered by the European Parliament, says that boosting reuse will save money and create around 600,000 jobs, as it expects "a lot of innovation in packaging solutions that facilitate reduction, reuse and recycling.” “Single-use packaging industries will have to invest in a transition, but the overall economic and job creation impact in the EU is positive,” he concluded.

It is advisable to follow this dossier closely, due to the economic repercussions it may have within the foodservice sector, especially that made up of restaurant SMEs.