Abstract

As major economies race to introduce stricter “plastic restriction orders,” markets across China, Europe and the United States, Southeast Asia, and Japan and South Korea are rapidly advancing bans on single-use plastic packaging and circular-economy regulations. These policies directly affect the material selection of internal cushioning and transit cushioning for exported products, and traditional non-degradable plastics such as EPE foam are facing elimination. Companies must closely track each region’s plastic-restriction timeline and compliance requirements, and accelerate adoption of environmentally friendly cushioning solutions. Molded pulp packaging and other fiber-based materials are gaining major opportunities under policy tailwinds and are becoming high-potential alternatives to EPE/foam solutions. This article summarizes global plastic-restriction policy updates and packaging trends from 2020 to 2026, focusing on how regional policies influence cushioning material choices, and provides practical guidance for packaging decision-makers in brands and OEM/ODM manufacturers.

1. China: Tightens Logistics and E-commerce Packaging Controls, 2025 Becomes a Hard Deadline

China began implementing plastic restrictions in 2008 and has significantly upgraded its plastic-control actions in recent years. In January 2020, the National Development and Reform Commission and other authorities issued policy guidance on strengthening plastic pollution control, proposing phased targets for restricting and banning plastic products in 2020, 2022, and 2025. Among these, it clearly requires that by the end of 2025, postal and express outlets nationwide stop using non-degradable plastic packaging bags, plastic tape, and single-use plastic woven bags, among others. This means that domestic courier and e-commerce logistics will need to fully replace traditional plastic bags and sealing tapes with degradable or paper-based alternatives.

Over the past five years, China’s express delivery volume has doubled to nearly 170 billion parcels per year, and packaging waste has surged. Non-degradable foam plastic fillers and sealing tape have created intense pollution pressure. To meet the 2025 plastic-ban deadline, regulators are strengthening enforcement. A revised Express Packaging Management measure will take effect in June 2025, and violations involving the use of non-environmental packaging may be fined up to RMB 20,000. Leading courier companies have already responded by moving to phase out non-degradable plastic packaging, but many companies are still observing and “compliance-for-inspection” behavior remains common. It can be expected that the end-of-2025 hard deadline will force logistics packaging to accelerate a “de-plastification” transformation, and internal cushioning materials will shift more toward paper-based and biodegradable materials to comply.

In addition to national-level policies, local governments have introduced stricter measures. In September 2025, Shanghai implemented a local regulation described as the “strictest plastic ban,” explicitly prohibiting the use of non-degradable plastic bags, meal boxes, and straws in areas such as food delivery, and promoting reusable and degradable alternatives, with maximum fines up to RMB 100,000. This indicates that, beyond consumer-facing packaging, China is also restricting plastic use in product transport and after-sales packaging. For example, many provinces and cities have already explicitly required express outlets not to use non-degradable foam plastic fillers. Overall, China’s packaging regulation is expanding from plastic-bag control to broader domains such as postal and express packaging and e-commerce logistics packaging, making proactive compliance transformation essential. Exporters that fulfill and ship domestically should ensure packaging materials meet these environmental requirements, or they may face compliance risks and brand reputation pressure.

2. Europe and the United States: Recyclability, Right-Sizing, and the Decline of Foam Cushioning

2.1 European Union (EU)

The European Union is a global pioneer in plastic restriction legislation. As early as 2019, the EU issued the Single-Use Plastics Directive (SUP Directive). From July 3, 2021, member states comprehensively prohibited the placing on the market of 10 categories of single-use plastic products such as plastic straws, cutlery, and cotton-bud sticks, and required that by 2025 the collection rate for single-use plastic bottles reach 90%. In addition, producers are required to assume greater responsibility across the full life cycle of plastic products and their packaging. EU countries have also imposed taxes or bans on plastic bags. For example, France has phased in bans on certain single-use tableware and plastic cup packaging since 2020, with the ultimate goal of reducing the use of single-use plastic products to zero before 2040.

On this basis, the EU will implement a new Packaging and Packaging Waste Regulation (PPWR) in 2025. The regulation will enter into force in August 2025 and mandate that packaging be designed for recyclability, introduce staged increases in recycled-plastic content (30%–65% by 2030), limit void space in e-commerce packaging to no more than 40%, and require digital labels on packaging to disclose materials and recycling information. This series of measures will require products entering the EU market to use more sustainable and circular packaging, driving green transformation across supply chains. For manufacturers exporting to the EU, internal packaging and cushioning materials must be adjusted in advance, with a preference for recyclable paper-based or biodegradable fiber materials to meet the EU’s requirements for packaging reduction and recyclability. Otherwise, excessive packaging or hard-to-recycle materials may encounter obstacles during customs clearance or market supervision.

2.2 United States

The United States currently has no comprehensive federal-level plastic restriction order, but state and local legislation is becoming increasingly strict. Bans targeting foamed plastics (such as expanded polystyrene, EPS) are being adopted across states. By 2025, at least 12 states (including New York, California, Washington, New Jersey, and Colorado) have passed bills prohibiting the use of single-use foam food containers in areas such as takeout and food service. These bans took effect in batches from 2020 to 2025. For example, Oregon and Rhode Island comprehensively prohibited EPS tableware from January 1, 2025.

California went further by passing SB54 in 2022, requiring that EPS food packaging reach a 25% actual recycling rate by 2025, otherwise it would be prohibited for sale within the state. This “restriction to promote circularity” measure effectively sets a disguised phase-out deadline for EPS packaging. Under this influence, U.S. brands have proactively adjusted packaging. For example, The Home Depot announced it had fully eliminated EPS in private-brand product packaging in 2023, replacing it with corrugated paper corner supports. In 2023, it reduced EPS usage by approximately 6 million cubic feet, saving substantial transportation costs. Looking ahead, The Home Depot plans that by 2027, all new product packaging will use recyclable or compostable materials, including cardboard and molded pulp. Another U.S. retailer, Lowe’s, also proposed achieving 100% recyclable/reusable/compostable packaging for private-brand packaging by 2030.

These market developments show that even though U.S. regulations are fragmented, the market is evolving toward plastic-free packaging. Manufacturers exporting to the U.S. should pay attention to differences among state regulations and prioritize using environmentally friendly cushioning packaging (such as paper honeycomb board and molded pulp trays) to replace EPS/EPE foam, to meet increasingly strict customer requirements and sustainable procurement standards.

3. Southeast Asia: Rapid Policy Expansion and Circular-Economy Adoption

Southeast Asian emerging economies have actively joined plastic restriction efforts in recent years. Many countries began with plastic bag controls and are gradually expanding the scope of bans. Thailand approved its Plastic Waste Management Roadmap in 2019, and from January 1, 2020, large supermarkets and convenience stores nationwide stopped providing free single-use plastic shopping bags. Thailand subsequently restricted plastic straws and foam food containers and planned to phase out four categories of single-use plastic products by 2022. More importantly, Thailand decided to ban imports of plastic scrap starting in 2025, pushing domestic recycling systems to upgrade. Thailand also launched EPR trials in 2021, requiring companies to take responsibility for packaging waste recycling, and allowed recycled PET to be used in food packaging starting in 2024 to promote circularity. These measures will force products manufactured or sold in Thailand to shift toward recyclable packaging. Exported goods containing large amounts of non-recyclable plastic packaging may face barriers at customs clearance and in market distribution.

Vietnam has also introduced strong policies to address “white pollution.” Vietnam committed that from January 1, 2026, it will ban the production and import of non-biodegradable plastic bags for domestic use, and supermarkets and shopping centers will no longer be allowed to provide such plastic bags. At the same time, Hanoi and other areas require hotels and tourist sites to ban single-use plastic items in guest rooms starting in 2026. Vietnam plans to phase out most single-use plastic products before 2031. In addition, Vietnam implemented amendments to its Environmental Protection Law in 2022, introducing packaging EPR: from 2024, producers must pay recycling fund fees based on packaging volumes placed on the market or carry out recycling themselves. Therefore, for exporters to Vietnam, using environmentally friendly packaging not only helps reduce potential EPR-related costs, but also enables early alignment with Vietnam’s 2026 plastic ban, avoiding future market rejection due to non-compliant packaging.

Indonesia, Malaysia, and other countries are also moving forward. Indonesia set a target of reducing marine plastic waste by 70% by 2025, and cities such as Jakarta have already banned plastic bags while promoting a national plastic-control timeline. Indonesia is expected to comprehensively ban single-use plastics by the end of 2026. Indonesia has also banned plastic waste imports from 2025 and issued regulations in 2023 requiring brands to take responsibility for packaging waste management. Malaysia has also announced a gradual stop to importing foreign plastic scrap. The overall trend in Southeast Asia is to tighten plastic control from isolated measures to broader systems, restricting domestic use and preventing the region from becoming a dumping ground for foreign plastic waste. For export manufacturers, this means that for shipments to ASEAN countries, transit packaging and cushioning materials should preferably use biodegradable materials or locally recyclable materials, improving customs and market acceptance. For example, using molded pulp trays instead of traditional foam blocks not only matches local policies but is also more likely to be accepted by consumers. Companies should also track certification requirements in each country and select environmental packaging suppliers that meet local standards, avoiding export disruptions due to packaging non-compliance.

4. Japan and South Korea: Reduction + Recycling Mandates Drive Packaging Decisions

4.1 Japan

Japan and South Korea, as developed economies in East Asia, focus on both reduction and recycling for plastic governance. Japan does not impose a full “plastic ban,” but promotes reduction through laws and measures. From July 2020, Japan implemented nationwide shopping bag charges, requiring retailers to charge for plastic bags to encourage consumers to bring reusable bags. Later, Japan enacted the Plastic Resource Circulation Promotion Act in April 2022, requiring businesses in certain industries to formulate reduction plans for 12 categories of single-use plastic products, including hotel toiletries and takeout utensils. Manufacturers must improve the recyclability of plastic product designs and label plastic types to facilitate sorting and recycling.

Although Japan has not banned plastic foam used as cushioning for electronics, the government and society attach great importance to packaging reduction. Large electronics companies have launched “plastic-free packaging” initiatives. It is worth noting that Japanese consumers have strong environmental awareness, and “over-packaging” often attracts public criticism. Therefore, products exported to Japan should keep packaging as simple and environmentally friendly as possible, using paper-based and bamboo fiber materials for cushioning. Japan also plans to achieve 100% effective utilization of plastic packaging by 2035 (recycling or energy recovery), which will further drive packaging materials toward recyclable fiber directions.

4.2 South Korea

South Korea has continuously increased plastic-control measures in recent years, following a path of gradually expanding restrictions and raising circularity requirements. As early as 2019, South Korea banned supermarkets and bakeries from providing single-use plastic bags, with fines up to 3 million won for violations. Starting in 2021, South Korea restricted single-use plastic cups in dine-in settings. At the end of 2022, the Ministry of Environment expanded the ban, preventing convenience stores and bakeries from providing single-use plastic bags even with payment. These measures show South Korea moving toward a comprehensive phase-out of single-use plastic bags, with a plan to fully eliminate plastic bags by 2030.

On recycling and circularity, South Korea has mandated recycled content in certain packaging. From 2022, beverage bottle producers must use a certain share of recycled plastic, with targets rising from 3% initially to 10% by 2026, and 30% by 2030. South Korea also banned imports of foreign waste plastics (starting in 2022) and implemented packaging material classification and labeling systems to improve recycling rates. For exporters to South Korea, this means that packaging must often be evaluated under recyclability grading systems, and channels increasingly favor higher-rated packaging. This effectively forces manufacturers to reduce complex multi-material packaging and use simpler, paper-based materials. South Korea aims to raise plastic waste recycling rates from 54% to 70% by 2025. Therefore, it can be expected that future products entering the South Korean market should avoid foam plastics in cushioning and transit packaging to prevent being classified as “hard to recycle” and impacting sales. Using molded pulp and other recyclable or compostable alternatives will help align with South Korea’s green packaging policy direction.

5. Molded Pulp / Molded Fiber Packaging: The Rising Alternative for Protective Packaging

As plastic restrictions expand globally, molded pulp packaging (also referred to as molded fiber packaging) is gaining momentum as a protective packaging material that can replace foam-based systems in many product categories.

Why molded fiber is benefiting from policy and procurement shifts

• Compliance alignment: Fiber-based cushioning is more compatible with recycling systems and “low-plastic” regulatory direction.
• Procurement preference: More brands and retailers embed sustainable packaging requirements in vendor onboarding and annual audits.
• Performance maturity: Modern molded fiber designs can deliver structural support, shock absorption, and stacking strength suitable for many electronics and consumer goods.
• Brand value: Visible reduction of plastic can support sustainability claims and improve market perception.

Typical replacement scenarios (high-conversion opportunities)

• Replacing EPE/EPS foam blocks with custom molded fiber corner supports, trays, and end-caps
• Transit protection for durable goods and electronics using molded fiber frames and inserts
• Inner cushioning systems integrated with corrugated structures for drop and compression performance

Practical guidance for decision-makers

• Start from product fragility + logistics profile, then engineer molded fiber geometries to match impact zones.
• Validate through drop, vibration, and compression testing, not assumptions.
• Optimize for mass production stability, dimensional tolerance, and assembly efficiency.
• Ensure supplier capability for mold precision, moisture control, and consistent density.

6. Conclusion: What Packaging Decision-Makers Should Do Now

Global plastic restrictions are converging on a single outcome: protective packaging must become more recyclable, less plastic-dependent, and more circular-economy compatible. For brands and OEM/ODM manufacturers serving China, Europe, North America, Southeast Asia, Japan, and South Korea, the most pragmatic approach is to treat “plastic reduction” as a baseline compliance requirement and view packaging redesign as a strategic competitive move.

Recommended actions:

• Build a market-by-market compliance map for your export destinations and sales channels, focusing on 2025–2026.
• Prioritize protective packaging conversion (inner cushioning and transit protection), where foam reduction has immediate impact.
• Adopt molded pulp / molded fiber packaging as a core alternative for replacing EPE/foam systems, supported by structured testing.
• Engage qualified molded fiber packaging suppliers early for design-for-manufacture, tooling planning, and scale-up readiness.
• Use sustainability as procurement leverage, improving customer acceptance and reducing future redesign costs.

References

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[7] Council of the European Union. Proposal for a Regulation on Packaging and Packaging Waste (PPWR). 2022.

[8] Bioleader. US States Crack Down on Polystyrene Foam. 2025.

[9] The Home Depot (Company Statement). Elimination of EPS and PVC in Private-Brand Packaging. 2023.

[10] National Environment Agency (Singapore). Mandatory Packaging Reporting – Singapore. 2021.

[11] ICIS. Rise of Regulation in Asia – Recycled Polymer Mandates. 2025.

[12] Grand View Research. Molded Fiber Packaging Market Report 2025–2033. 2024.

[13]Apple Inc. Apple 2025 Environmental Progress Report. 2025.