Italy has passed a law that mandates compostable versions of single-use plastic packaging formats that will otherwise be banned under the Packaging and Packaging Regulation, from lightweight fresh produce packs to condiment wrappers.

Spring 2026
Polyethylene (PE) prices in Europe rose sharply following disruptions to Middle East supply routes.

Processors reported difficulty securing spot volumes, with some grades being allocated rather than freely available.

Higher feedstock costs and reduced imports contributed to tight supply conditions.

Reuters
March 26, 2026

The conflict affecting the Strait of Hormuz disrupted a major global route for petrochemical exports.

The Middle East supplied more than 40% of global polyethylene exports, making Europe particularly vulnerable to supply interruptions.

European buyers faced shortages of PE and PP, while feedstock costs (especially naphtha) increased sharply.

Large chemical companies including BASF and Lanxess began passing through substantial cost increases to customers.

As the EU moves toward full implementation of the Packaging and Packaging Waste Regulation (PPWR) in 2026, the policy is poised to reshape packaging design, material choices, and end-of-life pathways across the European market.

The regulation introduces harmonized design-for-recycling requirements, clearer labeling standards, and measurable targets aimed at reducing overall packaging waste. It also encourages innovation in low-carbon, renewable feedstocks, areas where PLA can play a meaningful role as brands and converters work to meet compliance timelines.

March 2026
Overview
EU law covers all packaging and packaging waste on the European market, including all materials and packaging in commercial, household, industrial and other sectors.

The rules, first laid out in the Packaging and Packaging Waste Directive 94/62/EC (PPWD) and now the Packaging and Packaging Waste Regulation 2025/40 (PPWR), regulate what kind of packaging can be placed on the EU market, as well as packaging waste management and prevention measures.

All packaging must comply with essential requirements related to its manufacturing, composition, and reusable or recoverable nature.

Read the factsheet here.

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