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POSITIONS 10 February 2025

AIM calls for a stronger and more integrated EU single market

The single market has been one of the European Union’s greatest achievements, driving economic growth, fostering innovation, and ensuring consumer choice. However, ongoing fragmentation in its implementation threatens its efficiency, competitiveness and ability to serve consumers effectively. AIM, the European Brands Association, has submitted feedback to the European Commission highlighting key challenges and solutions to strengthen and future-proof the single market.

For over 30 years, the single market has provided businesses and consumers with access to a diverse range of high-quality products. In 2022, €276.1 billion worth of consumer goods were traded within the EU, demonstrating its economic importance. The consumer goods sector alone accounts for 11.6% of total EU manufacturing output, with 61% of its products traded within the EU.

Investment in research and development (R&D) plays a crucial role in maintaining this growth, with the fast-moving consumer goods (FMCG) industry investing €17.3 billion in R&D in 2022. This commitment drives sustainable innovation, supports economic resilience and enhances product quality.

Addressing market fragmentation

Despite its many advantages, the single market faces increasing fragmentation due to inconsistent national implementation of EU legislation. AIM’s feedback highlights how divergent rules on packaging, labelling, intellectual property and unfair trading practices hinder the free movement of goods, increase costs for businesses and limit consumer choice.

For example:

  • Divergent national packaging regulations force manufacturers to create multiple versions of the same product, increasing production costs and environmental waste.
  • Inconsistent enforcement of intellectual property rights creates barriers for brands, making it harder to protect innovations against counterfeiting.
  • Unfair trading practices remain a concern, with differences in national rules impacting suppliers’ ability to compete fairly across EU markets.

AIM’s key recommendations

To tackle these issues and strengthen the single market, AIM is calling on the European Commission and policymakers to:

  • Harmonise regulations – Reduce national-level rule variations to create a more predictable and fair market environment.
  • Increase digitalisation – Support the use of digital solutions, such as QR codes for packaging requirements, to streamline compliance.
  • Strengthen enforcement mechanisms – Ensure that single market rules are effectively implemented across all member states.
  • Improve stakeholder engagement – Foster dialogue between industry, policymakers and enforcement bodies to prevent regulatory conflicts.
  • Enhance cross-border cooperation – Address barriers created by national disparities in intellectual property protection, unfair trading practices and sustainability regulations.

Building a future-proof single market

AIM believes that a well-functioning single market is crucial for ensuring Europe’s competitiveness on the global stage. By eliminating fragmentation, embracing harmonisation and fostering innovation, policymakers can secure a resilient and dynamic economic environment that benefits businesses and consumers alike.

To read AIM’s full feedback on the European Commission’s single market strategy click here.