The packaging sector is undergoing a significant transformation driven by increasing environmental challenges and new European regulatory frameworks. The Packaging and Packaging Waste Regulation (PPWR), following the European Green Deal and Circular Economy Action Plan, introduces five strategic priorities: waste prevention, recyclability, recycled content, compostable materials, and reusable systems. This framework aims to systematically review the current state of academic research in relation to these five intervention areas, assessing the extent to which the scientific literature supports the regulation’s circular economy objectives. The PPWR sets guidelines for key aspects such as packag ing treatment, recycling targets, Extended Producer Responsibility (EPR) and material optimization. These aspects are strongly linked to market dynamics, driving innovation and new developments in packaging design. This study aims to provide a comprehensive overview of the industry’s evolution, with a focus on the crucial role of the circular economy in addressing the persistent issue of packaging waste. By conducting a systematic literature review using the PRISMA method, the research explores the relationship between the regulation’s structural design and the European Commission’s priority areas. The results reveal that waste prevention and reusability are the most researched areas, particularly concerning environmental assessments and regulatory tools like EPR. Additionally, while recyclability has been studied from technical and environmental perspectives, there is still a lack of research on how it connects with supply chain and material market trends. Strengthening these connections could significantly enhance recycling efficiency and improve the sustainability of packaging systems. Furthermore, financial incentives and policy strategies could play a key role in facilitating the transition to a circular economy. Addressing these gaps will foster a more integrated understanding of sustainable packaging solutions.