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Thursday, July 10, 2025
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MSMEs face packaging challenges in EU exports

Asia Packaging Federation (APF) president Joseph Ross Jocson raised alarm over packaging challenges Filipino micro, small and medium enterprises (MSMEs) face in exporting to the European Union (EU).

The hurdles stemmed from stricter packaging compliance requirements under the EU’s Green Deal, which many MSMEs struggle to meet.

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“Multinationals can handle it, but our small businesses are not ready. This requirement is pushing MSMEs out of the lucrative EU market due to limited access to resources and sustainable packaging technologies,” Jocson said in a pre-event briefing Tuesday at the World Trade Center for the 5th Edition of Propak Philippines 2025.

He said that while multinational companies committed to 100-percent recyclable packaging by 2025 as part of their corporate sustainability policies, local MSMEs lack the same capacity.

Jocson said countries like Thailand and South Korea are far ahead, with robust government support fostering innovation in packaging.

“Go to Bangkok, and you’ll see their products’ packaging is exceptional because their government fully supports the industry. In comparison, our packaging center lags behind,” he said.

Jocson urged the government to prioritize funding for the Department of Science and Technology (DOST) and the Department of Trade and Industry (DTI) to help MSMEs adopt sustainable packaging practices.

“Budget allocation for these agencies is crucial. Multinationals can afford it, but our backyard industries need support,” he said.

High costs for packaging materials—most of which are imported—further exacerbate the situation, limiting the local industry’s competitiveness.

Jocson stressed the need for government-led initiatives to upscale packaging designs and make them export-ready, particularly for products like banana fritters and other local goods.

Jocson also mentioned potential challenges from local legislation banning single-use plastics, which could significantly impact the economy while benefiting the environment.

“We need a balanced approach. Technology can help create biodegradable materials, but laws must account for industry realities,” he said.

Propak Philippines 2025 runs from Feb. 12 to Feb. 14, 2025 at the World Trade Center. The event will showcase trending sustainable packaging options for the Philippine market.

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