Packaging waste that is not recycled or reused has a negative environmental effect and presents serious concern. At the same time, various materials, which were used to manufacture packaging, could be used as resources for production of new packaging or other products. For these reasons, legislation is tightening up with waste management objectives becoming more stringent in order to reduce the volume of not recycled, reused or recovered waste and encourage implementation of circular economy concept and use of materials based on the closed-loop principle. This paper analyses issues related to production of packaging by using materials from recycled packaging waste with the focus on the influence of hazardous substances the waste may contain, and considers potential problems in the context of implementation of circular economy principles according to the latest EU legislation.