The conversation around sustainable packaging has shifted. What was once a nice-to-have differentiator is quickly becoming a legal requirement. And for those of us in tea capsules, the details matter.

The European Union's Packaging and Packaging Waste Regulation (PPWR) entered into force on February 11, 2025, with general application starting August 12, 2026. From there, the runway to 2030 gets short quickly. For B2B brands: whether you're supplying wellness products or stocking hotel amenities: understanding this shift isn't optional anymore.

So here's the question we keep hearing: Should we go compostable or recyclable?

For tea capsules specifically, the legal default is still pointing toward recyclability by 2030. But in the real world, used tea is messy. And that’s why we see plastic-free compostable capsules as the more future-proof choice: not because the EU mandates it across the board today, but because it solves the contamination problem that makes high recyclability performance harder to achieve in practice.

The Regulatory Landscape Is Changing

The EU has been signalling its intentions for years. But now we have dates to work with.

The PPWR entered into force on February 11, 2025, and will generally apply from August 12, 2026. That’s when the practical work begins for most brands: specifications, supplier audits, packaging redesigns, and rollouts.

By January 1, 2030, packaging placed on the EU market must be designed to be recyclable and will be assessed through performance grades (A, B, C). Not “sort of” recyclable. Not “technically” recyclable if you squint at the label. Designed and rated.

And after that, the EU direction continues to tighten. The point is simple: the era of vague sustainability claims is ending. The bar is becoming measurable.

Where Compostable Fits In (And Why Tea Capsules Are Different)

Here’s the key correction we want brands to walk away with.

Under the PPWR, mandatory compostability by February 2028 applies only to permeable tea bags and coffee pads. That’s the EU-wide mandate.

For non-permeable, compostability is not an EU-wide requirement. The default compliance pathway for 2030 remains recyclability (graded A, B, C). Compostability is an option that individual Member States can choose to require, but only if they have the appropriate composting infrastructure and collection conditions in place.

So where does that leave tea capsules?

In a very practical grey zone. Tea capsules aren’t like clean, dry packaging. They’re used with hot water, then tossed with wet tea leaves. In other words: packaging that’s routinely contaminated with organic waste. That contamination is the whole point of the product.

This is why compostability still matters for tea capsules, even if it isn’t the EU-wide default mandate. It’s a future-proof design choice that:

• aligns with how consumers actually dispose of used tea
• reduces the “sorting guesswork” that drives contamination in recycling streams
• acts as a strategic hedge if specific Member States trigger the compostable option for capsules

One more nuance we think brands should hold in mind: not all “compostable” materials will be treated equally. Some compostable plastics (like PLA) may face more scrutiny over time, depending on how they behave in real-world systems and how they’re labeled, collected, and processed.

That’s why we’ve focused on a simpler end state: plastic-free compostable tea capsules.

The Case for Compostability (For Tea Capsules)

We understand the appeal of recyclability. It’s familiar. It’s what the PPWR defaults to for most formats.

But tea capsules are a special case. They’re typically disposed of when they’re wet, used, and mixed with organic leftovers. That “contaminated” reality makes it harder to achieve strong recyclability outcomes consistently, even when a material looks good on a spec sheet.

This is the reframing we’re making for B2B partners:

• Recyclability is the default requirement by 2030 (A, B, C grades).
• Compostability is the practical hedge for a “messy” use case, and a smart option where Member States decide to require it for non-permeable capsules.

For brands, compostability isn’t a romantic idea here. It’s a design strategy that can reduce the complexity of recycling contaminated packaging in the first place.

The Financial Reality: EPR Fees (And the Cost of Complexity)

Compliance isn't just about avoiding fines. It's about managing costs. And managing operational complexity.

Under the PPWR, Extended Producer Responsibility (EPR) fees will be modulated based on packaging performance criteria. In practice, that conversation often leans heavily on recyclability performance and grades.

But tea capsules have a built-in issue: contamination. Once the capsule is used, it’s no longer “clean packaging.” It’s packaging plus organic waste. That can complicate collection, sorting, and actual recycling outcomes.

This is where compostability can become the more straightforward route for tea capsules. Not because it’s automatically cheaper on paper in every scheme. But because it can help brands avoid the hidden costs that come from trying to recycle something that, in real life, often won’t be recycled well.

For B2B brands operating on tight margins, that practicality matters.

What This Means for Wellness Brands

If you're a wellness brand developing private-label tea products, this regulatory shift has direct implications for your supply chain decisions.

Your manufacturing partner's packaging capabilities will determine your compliance status. Choosing a partner with zero-plastic capsule technology isn’t just a sustainability talking point: it’s a practical way to reduce risk across different Member State interpretations, and to handle the real-world challenge of organic contamination.

At Herb & Tea Futurology, we've been anticipating this shift for years. Our OEM capsule manufacturing is built around zero-plastic capsule technology: plastic-free, compostable solutions designed for how tea capsules actually get disposed of (with organic waste). It’s a straightforward way to future-proof against two realities at once: the PPWR’s recyclability grading, and the possibility that some Member States will require compostability for non-permeable capsules where infrastructure supports it.

We've written before about the real cost of doing the right thing. Sustainable choices haven't always been the easy ones. But as the regulatory landscape catches up, brands that invested early are finding themselves ahead of the curve.

What This Means for Hospitality Businesses

Hotels and hospitality providers face a unique set of pressures. Your guests increasingly expect sustainable amenities. But you also need solutions that are practical, cost-effective, and compliant across multiple markets.

In-room tea amenities might seem like a small detail in the grand scheme of operations. But small details add up: especially when regulations change and your current supplier's packaging suddenly doesn't meet EU standards.

The smart move is to get ahead of this now. Partner with manufacturers who can provide plastic-free compostable tea capsules that help you stay resilient as EU-wide recyclability requirements tighten, and as individual Member States consider compostability pathways for capsules.

This isn't about greenwashing or chasing trends. It's about building a supply chain that won't need to be rebuilt in four years.

A Practical Framework for Decision-Making

So how should you approach this decision? Here's a simple framework:

1. Audit your current packaging. What materials are your tea capsules made from? What's their recyclability grade under current EU standards?

2. Understand your target markets. Are you selling primarily in the EU? Which Member States? Do any of them require (or signal plans to require) compostability for certain formats, and do they have the infrastructure to support it?

3. Evaluate your manufacturing partners. Can they support a packaging roadmap that’s compliant with the PPWR’s recyclability direction (A, B, C grades) and give you an option that’s robust in the face of organic contamination? For tea capsules, that’s where plastic-free compostability becomes a strategic advantage.

4. Factor in EPR costs (and operational friction). Model out what your packaging costs will look like under the new fee structures. Then pressure-test the real-world scenario: how likely is your capsule to be correctly disposed of, correctly sorted, and actually recycled once it’s full of wet tea leaves?

5. Communicate transparently with customers. Eco-conscious consumers appreciate honesty. If you’re standardizing around compostable capsules because tea capsules are routinely contaminated with organic waste, explain it in plain language. Most will understand.

The Bigger Picture

We believe sustainability isn't about choosing the option that sounds best in a press release. It's about choosing the option that actually works: for the planet, for regulations, and for your business.

For tea capsules, the PPWR default still points to recyclability. But the day-to-day reality doesn’t change: used capsules are often wet, contaminated, and disposed of with organic waste. That mismatch is where brands get exposed.

And while some “compostable plastics” (like PLA) may face increased scrutiny over time, plastic-free compostable capsules are a simpler, lower-drama solution: fewer material controversies, fewer sorting headaches, and a strong hedge if Member States decide to require compostability for non-permeable capsules where infrastructure supports it.

At Herb & Tea Futurology, we're here to help brands navigate this transition. Our expertise in sustainable capsule technology means you don't have to figure this out alone. We've already done the work of developing solutions that meet the standards coming down the pipeline.

Ready to Future-Proof Your Tea Line?

The 2030 deadline feels far away until it isn't. Brands that start making changes now will have time to test, iterate, and refine. Brands that wait will find themselves scrambling.

If you're a wellness brand or hospitality business looking to stay ahead of EU packaging regulations, we'd love to talk. Get in touch with our team to explore how our zero-plastic, plastic-free compostable capsule technology can help you stay compliant: and keep things simple.

Because doing the right thing shouldn't feel like a gamble. Not anymore.