Supermarket chains and hospitality operators across Europe have warned that the new European packaging regulation will drive price increases for consumers, as businesses absorb the cost of complying with stricter packaging requirements.

The warning comes from the two sectors that handle the highest volumes of packaged goods and single-use food service items in the EU. Both retail and hospitality rely heavily on packaging for prepared food, beverages and takeaway formats, and both now face redesign costs, substitution of materials and supplier renegotiations to meet the new regulatory standards.

The regulation targets packaging waste and recyclability across the single market. For hospitality businesses, the direct exposure sits in takeaway containers, cups, cutlery and delivery packaging — inputs that restaurants, cafés and hotel food-and-beverage operations purchase at scale. For supermarkets, the impact runs through private-label packaging, fresh produce wrapping and ready-meal formats.

What does the warning mean for operators?

The sector's core argument is cost transmission. Compliant packaging materials typically carry a price premium over conventional plastics and composites, and smaller operators have limited purchasing power to negotiate that premium down. The warning signals that menu prices and shelf prices will rise rather than margins absorbing the full cost.

For hospitality groups, the regulation adds another input-cost pressure on top of existing food inflation and energy costs. Multi-site operators will need to standardise new packaging specifications across supply chains, while independents face higher unit costs from distributors.

What happens next?

Implementation of the European packaging regulation will proceed through phased compliance deadlines, giving businesses a transition window to switch suppliers and redesign packaging lines. Expect further industry filings from retail and hospitality associations as sectors quantify the cost impact and push for adjustments to the timelines. Operators should audit their packaging supply contracts now, ahead of the compliance dates, to price the change into 2025 and 2026 budgets.