As Extended Producer Responsibility (EPR) regulations continue to evolve across Europe, businesses are facing increasingly complex compliance challenges. Shifting fee structures, stringent data requirements, and rising cost implications are reshaping the packaging landscape. For companies with large, diverse packaging portfolios, staying ahead of these developments has become a strategic priority.

Yet, within this regulatory upheaval lies a significant opportunity. When harnessed effectively, digitalization offers a pathway to meet compliance demands and unlock efficiencies, reduce costs, and drive sustainability performance.

At London Packaging Week 2025, Vivian Loftin, co-founder and managing director of Recyda, will present a compelling case for how digitalization is redefining the compliance landscape. Her session will explore how businesses can use digital tools to navigate regulations more efficiently, transforming what often feels like a burden into a competitive advantage.

Recyda, founded in 2020 and based in Germany, offers software that helps companies manage packaging sustainability, recyclability, and EPR compliance across international markets. With regulations like the UK’s new EPR scheme introducing eco-modulated fees, companies are under pressure to rethink their approach. Recyda’s platform enables businesses to track and manage these evolving obligations while identifying cost-saving opportunities.

“The main message I’d like to get across is the importance of digitalization in today’s packaging landscape, especially in light of changing regulations,” says Loftin. “I want to highlight that these regulations shouldn’t be seen as a burden but rather as an opportunity. When companies use digital tools to manage regulatory compliance, they can achieve significant cost savings and turn compliance into something positive, rather than something they’re constantly chasing due to data gaps.”

The shift from volume-based to data-driven compliance means that detailed packaging data, previously a peripheral concern, has become central to operations. What was a task for end-of-year reporting is now a daily concern, requiring real-time updates and decision-making. Recyda’s software helps streamline this process by combining all packaging data, regulatory updates, and compliance criteria in one place. This enables companies to react quickly, design packaging with future regulations in mind, and reduce the risk of costly mistakes.

“Keeping up with every country’s specific rules and applying them across an entire portfolio is an enormous task,” explains Loftin. “That’s why digitalization, and specifically our software, can be such a game-changer. It removes the burden and brings visibility to a space where many companies remain unclear.”

Unlocking efficiency in complexity

Recyda’s value becomes especially evident when managing complex packaging portfolios. For companies with thousands of packaging types, digital platforms are not a luxury – they’re a necessity. Loftin points out that the more complexity there is, the greater the impact of a streamlined, centralized digital solution. “The more complex a packaging portfolio is – especially with thousands of packaging types – the greater the value we can bring. We also work with other stakeholders across the packaging value chain, but the need for efficiency scales with complexity, and that’s where we can deliver the most impact.”

A key example of this value in action is cost optimization through eco-modulation. Loftin recalls a client case where Recyda helped analyze EPR fees in a single country, resulting in potential savings of over a million euros. “That’s a strong business case on its own,” she says.

This is particularly relevant in the UK, where base EPR fees are in place, and eco-modulated fees are expected to follow soon. Companies that aren’t preparing now risk facing steep increases in their compliance costs.

Despite the clear benefits, digital maturity in the packaging sector remains low. Many companies still rely on spreadsheets. “When we first started the business, our main competitor wasn’t another software, it was Excel,” Loftin notes. “We spent a lot of time explaining the value of a true digital platform: automation, large-scale data handling, and integration into existing systems. It was, and still is, a bit of an educational process.”

To meet the growing complexity of compliance and design challenges, Recyda is now incorporating AI into its platform. One new feature enables the auto-generation of packaging specifications using AI, reducing manual inputs and increasing clarity. “We’re integrating AI into our software, including a new feature that uses AI to auto-generate packaging specifications. This reduces manual input even further, letting users work smarter and faster. People are responding really well to that because it saves time and brings clarity to complex processes.”

Beyond automation, Recyda’s technology is unlocking predictive insights, enabling companies to anticipate compliance risks and identify where packaging improvements could drive both sustainability and savings. These insights also help teams justify changes internally, turning abstract regulatory language into tangible business impacts.

Another complex area Recyda simplifies is eco-modulation. Many companies find this particularly daunting due to its dynamic nature and differing interpretations across countries. By embedding this functionality into the platform, Recyda enables users to instantly assess whether a packaging type is at risk of penalties, and what changes can be made to reduce those risks.

Still, regulatory uncertainty persists. As the Packaging and Packaging Waste Regulation (PPWR) aims to harmonize rules across the EU, some national differences are expected to remain. Recyda handles this complexity by tracking and integrating country-specific rules into the software.

From passive compliance to proactive strategy

The platform also uses technology – website scraping and AI tools – to identify real-time regulatory changes. The goal is simple: eliminate surprises and reduce the manual effort required to stay compliant.

Despite these tools, Loftin urges businesses to become more proactive during policy development phases. Many countries, including Germany and the UK, hold public consultations on upcoming regulations, but company participation is often limited. “That’s where businesses really need to step up. They have to be proactive and contribute feedback. In Germany, for example, there’s a consultation phase every year where companies can respond to updates to the German Minimum Standard for determining the recyclability of packaging before they launch in September. While some companies are collaborating to submit common feedback, others don’t participate – and then complain afterwards.”

The good news, particularly in the UK, is that momentum is building. Loftin sees positive signs in the step-by-step implementation approach and adapting best practices from other markets. “Things are happening quickly now, which is encouraging. There are ambitious targets and a step-by-step implementation plan that will become stricter over time, with eco-modulation mechanisms coming in later. I find it promising that the UK scheme is built on existing concepts, so it’s not completely unfamiliar, just tailored to local needs.

“What we’re offering today goes well beyond ‘don’t get left behind.’ We provide a real business advantage—a tool that saves time, money, and stress,” she adds. “The shift is happening now, and we’re not just here to sell software. We support a broader mission: promoting digitalization as a key driver of sustainability in the packaging industry. It’s a big transformation, but it’s underway, and it’s time to start.”