This thesis explores the challenges Small and Medium-sized Enterprises (SMEs) face in complying with EU sustainable packaging regulations as they pose ever tightening guidelines to follow. The study respondents are representatives from SMEs operating within the EU, who provided insights through semi-structured interviews. Employing the 7Rs framework—Rethink, Refuse, Reduce, Reuse, Repurpose, Recycle, and Rot—this research investigates how these enterprises adapt their packaging strategies to align with EU directives aimed at achieving 70% recyclable and reusable packaging by 2030. Despite varied challenges such as high costs and diverse regulatory demands across EU states, SMEs demonstrate resilience and innovation in their compliance strategies. environmental impact while maintaining economic viability. Such as an SME transitioning from using plastic packaging to cardboard, driven by both regulatory requirements and carrier fees for non-compliance, which resulted in reduced environmental impact and improved customer satisfaction. This research provides insights into the dynamic interplay between regulatory frameworks and business practices, offering a deeper understanding of sustainability in the packaging industry.