PFAS Regulations and Economic Impact: A Review of the U.S. and European Food and Pharmaceutical Industries with Some Case Studies

Background: Per- and polyfluoroalkyl substances (PFAS) are synthetic substances broadly incorporated into food ingredients and packaging, pharmaceuticals, textiles, industrial uses, and electronics. Their stability makes them difficult to break down and retain in the environment. PFAS have been documented to “accumulate in organisms and have adverse health effects.” PFAS are a growing environmental and health concern and a focus of regulatory agencies in the United States and the European Union. Different regulatory approaches have resulted in measurable economic impacts.

Objective: This review focuses on regulatory differences of PFAS in the United States and the European Union and their economic implications for the food and pharmaceutical sectors. It highlights the influence of regulatory differences on business compliance, innovation, supply chains, and long-term environmental protection.

Methodology: This review analyzed primary literature published between 2010 and 2026. Regulatory and scientific literature from USEPA, ECHA, EFSA, and scientific databases including ScienceDirect, PubMed, and Web of Science was utilized. A comparative analysis was employed to assess regulatory and economic implications.

Results: The assessment shows evident differences between U.S. and EU PFAS regulatory frameworks. The EU follows a precautionary and class-based regulatory method within REACH that supports early-stage risk prevention and sustainable development. The U.S. largely follows a risk-based and chemical-specific approach, which may reduce short-term compliance burdens but result in higher long-term costs associated with litigation, risk remediation, and exposure prevention. The food sector faces contamination, reformulation, recall, and traceability issues, while the pharmaceutical sector faces substance changes, manufacturing, and compliance issues.

Conclusion: Precautionary regulation may provide greater long-term benefits for human health and environmental protection despite higher initial business costs. Harmonized global PFAS regulation, research funding for safer alternatives, and engagement among policymakers, researchers, and businesses can protect the environment, improve human health, and support sustainable economic development.