EuPC warns reusable alternatives to SUP pallet wraps could backfire / Study estimates added annual costs at EUR 4.9 bn in eight sectors

A study commissioned by the European Plastics Converters (EuPC) shows that if a shift is made from single-use plastic (SUP) pallet wrapping films to reusable solutions, the resulting additional costs could further weaken Europe's competitiveness.

EuPC warns that changing SUP pallet packaging could incur huge costs (photo: Smarterpix/Kalinovskiy)

The study covers eight key industries, with results indicating that carbon emissions could potentially rise by 1700%, and the estimated annual additional cost could reach 4.9 billion euros. The European Plastics Converters Association points out that the impact within the EU could be even more significant.

Due to the EU's Packaging and Packaging Waste Regulation (PPWR), which will set multiple reuse targets for pallet wrapping films starting in August 2026, and allows for exemptions in "specific industries facing special economic constraints," the industry association has commissioned the Belgian sustainability consulting firm RDC to analyze the impact of this transition.

The report assessed the economic viability of transitioning from single-use plastic wrap and covers (currently the most commonly used transport packaging) to alternatives that comply with PPWR requirements (such as reusable covers and reusable stackable turnover boxes/pallet boxes), focusing on eight major industrial sectors in the EU: agriculture, cement, construction, dairy, glass, plastics, retail, and water services.

For different industries of plastic products, the study selected a 1-liter high-density polyethylene (HDPE) milk bottle (filled), a 25-kilogram plastic granule bag, and a 1.5-liter polyethylene terephthalate (PET) bottle (filled) as analysis objects, corresponding to the dairy, plastics, and water industries.

The research data was mainly collected through 4 field visits and 31 interviews, aiming to clarify the functions of various types of pallet packaging and related costs.

The results show that if the EU fully transitions to a reusable pallet packaging system in the long term, the annual production cost for milk bottles will increase by 297 million euros (an increase of 2.2%), plastic granule bags will increase by 167 million euros (an increase of 0.3%), and PET bottles will increase by 947 million euros (an increase of 2.7%).

The additional costs mainly stem from two aspects: first, the new equipment required at the end of the automated production line, and second, the procurement costs of the reusable packaging itself.

The analysis points out that the rising production costs of reusable packaging systems will also impact the EU's "cost-sensitive" export trade. The report mentions: "Operators engaged in export business within and outside the EU may still need to retain the currently globally used disposable pallet packaging systems."

This means that, in the short to medium term, manufacturers will need to operate both disposable and reusable systems simultaneously in their production facilities, which will complicate logistics processes, and multiple competing reusable standards will coexist.

Due to the current lack of large-scale application of alternative reusable systems, the research results are based on multiple assumptions. RDC Environment Company states that there is "significant uncertainty" in the market regarding the transition from manual operations to automated, optimized reusable systems on a large scale. Therefore, the long-term scenario set in the study is that improved reusable solutions are widely applied and compatible with automated systems.

The European Plastics Converters Association previously stated that it plans to use the research results to engage in "constructive dialogue" with European legislators on the formulation of the implementation details of the "Packaging and Packaging Waste Regulation."