The flexible packaging industry is simultaneously facing regulatory, economic, and technical pressure. While a plastic packaging tax is being debated once again in Berlin, raw materials remain expensive despite short-term relief. At the same time, European recyclers are coming under pressure, and several acquisitions show that the market continues to consolidate.
Plastic packaging tax: back on the fast track?
The proposed German plastic packaging tax is once again causing a stir. 42 business and industry associations are strongly urging that the draft bill to introduce the tax should not be pushed through under an accelerated procedure via the 2027 Budget Accompanying Act.
This is particularly remarkable because the Federal Government had announced a regular legislative procedure with inter-departmental coordination and parliamentary consultation as recently as October 19. At the editorial deadline, no confirmed cabinet decision was available – the tax remains a draft.
Update 5th of November: Plastic tax was not on the agenda of the parliament and therefore is further shifted.
For the packaging industry, there is more at stake than the potential charge of 550 euros per tonne of plastic. A purely weight-based tax could disadvantage lightweight, material-efficient plastic packaging and trigger shifts toward heavier materials. At the same time, it would create new reporting, verification, and administrative processes.
A plastic tax should promote the circular economy and not merely plug budget holes. Without a sound impact assessment, consultation with the value chain, and clear incentives for recyclability and the use of recyclates, there is a risk that the actual objective will not be achieved.
Raw material prices falling – but it is too early to give the all-clear
Prices for some key raw materials for flexible packaging fell significantly in the third quarter of 2026. Flexible Packaging Europe reports a drop compared to the previous quarter of 24 percent for BOPP, 15 percent for LDPE, and 14 percent for HDPE. Aluminium foil saw a price reduction of three percent, while BOPA and coated paper rose slightly.
However, a year-on-year comparison reveals a different picture: BOPP is still 41 percent higher, HDPE 25 percent, and LDPE 23 percent. Energy also remains a substantial cost factor.
For converters, this means that while short-term relief is welcome, it is not yet a return to normality. Quoted prices, surcharges, and longer-term contracts remain difficult to calculate given the high volatility.
Source: Flexible Packaging Europe
European recyclers between future promises and acute crisis
At the Bureau of International Recycling convention in Málaga, representatives of the European plastics recycling industry warned of weak demand, high operational costs, and declining margins. Low-cost virgin material further intensifies competition.
In theory, the PPWR with its recyclate targets should send a strong demand signal. However, the crucial rules for the calculation, verification, and recognition of recyclates are still partly outstanding. At the same time, plastic waste exports to non-OECD countries are being restricted. As a result, more material could remain in Europe without sufficient demand already existing here.
This is a dangerous contradiction: Europe formulates targets for 2030, but risks losing today the very facilities needed to achieve these targets. Once recycling capacities close, they cannot simply be switched back on by decree later on.
Source: Bureau of International Recycling
Ringmetall grows in the bag-in-box market
German Ringmetall SE has acquired US-based bag-in-box manufacturer Rapak. Rapak produces flexible inner bags and filling systems for food, beverages, and industrial liquids. With this acquisition, Ringmetall enters the North American market and, according to its own statements, now considers itself the fourth-largest bag-in-box supplier worldwide.
The transaction shows how attractive the bag-in-box segment has become. Material efficiency, product protection, and a comparatively favourable packaging-to-product ratio make the format increasingly attractive for a wide range of applications. At the same time, combining pouch development with filling technology is gaining importance.
POLIFILM strengthens stretch film business
POLIFILM CAST is acquiring Croatian converter and distributor STRETCH HUNTER. The company specializes in hand stretch and pre-stretched stretch films, employs 25 people, and has an established customer base in Southeastern Europe.
POLIFILM is thus further strengthening its position along the load-securing value chain. It is no longer just about film manufacturing, but increasingly about converting, application engineering, and optimizing the entire stretching process.
Particularly in transit packaging, material savings are often achieved not through a single new raw material, but through the right combination of film, pre-stretching, machinery, and load profile.
Polinas acquires majority stake in İmaj Ambalaj
There is also a lot going on in the market for printed flexible packaging. Turkish BOPP and BOPET film manufacturer Polinas has acquired 67 percent of İmaj Ambalaj. İmaj produces printed packaging for food and fast-moving consumer goods.
The transaction links film manufacturing and downstream converting more closely together. Such vertical integration can shorten development times and improve access to printing, laminating, and finishing expertise.
The acquisition is relevant for the European market because Turkish film and packaging manufacturers are closely integrated into European supply chains. At the same time, consolidation pressure on independent converters is increasing.
Pet food pouches are set to become the ultimate test for mono-materials
The PPWR is increasing development pressure on pet food packaging. Dry food pouches require high mechanical stability as well as reliable moisture, fat, and aroma barriers. For wet food, retort sterilization comes into play. It is precisely here that simple mono-material concepts quickly reach their limits.
This topic connects directly to the presentations at INNO-Pouch 2026. Among others, TOPPAN, Huhtamaki, LyondellBasell, and IRPLAST demonstrated how high-barrier PE and PP structures are evolving. Retortable mono-PP pouches and tailored adhesive systems were also discussed.
The key takeaway: “mono-material” alone is not yet a solution. Film, barrier layer, adhesive, printing ink, closure, and sealing process must function as a complete system. In addition, there is the question of whether a new structure can be processed on existing filling and packaging lines.
Pet food in particular is therefore becoming an interesting real-world test. If recycling-oriented structures can combine product protection, runnability on machines, and long shelf life here, an important step from theoretical recyclability to industrial application will have been achieved.
Source: PetfoodIndustry
Context on INNO-Pouch 2026
Conclusion
This week illustrates particularly clearly how closely regulation, economic viability, and technical development are interrelated. Recyclate targets are of little help if recycling plants close due to a lack of demand. A plastic tax does not create ecological progress if it compromises material efficiency. And mono-material concepts will only prevail if they also work on the machine and on the product.
At the same time, companies continue to invest and consolidate – in stretch film, printed packaging, and bag-in-box systems. The market is not waiting for all regulatory questions to be answered. It is therefore all the more important to jointly assess the technical feasibility, specific recycling pathways and the economic implications.
