The packaging industry is undergoing a major shift as sustainability and waste reduction move to center stage. At the heart of this transformation is the growing emphasis on producer responsibility. With rising environmental concerns, consumer expectations and public policies are converging to reshape how companies design packaging and manage end-of-life disposal. For industry executives, staying ahead means having a clear understanding of shifting consumer values, evolving government mandates, and increasingly complex compliance landscapes.
What is Extended Producer Responsibility (EPR)?
Extended Producer Responsibility (EPR) is an environmental policy approach that holds companies accountable for the entire lifecycle of the products they introduce to the market, particularly the products’ end-of-life treatment. In the context of packaging, this means manufacturers, brands and importers are responsible for the collection, recycling, and safe disposal of packaging waste.
The goal of EPR is to shift the financial and operational burden of waste management away from municipalities back to the businesses who design and profit from these materials. This approach aims to incentivize sustainable packaging design and improve recyclability, ultimately supporting broader climate commitments.
Why is Packaging EPR Gaining Momentum? Understanding Consumer Attitudes
Consumer behavior is a powerful engine behind the momentum of producer responsibility policies. Today’s consumers increasingly expect companies to take ownership of sustainability, particularly concerning packaging waste.
A McKinsey & Company survey highlights this sentiment, showing a significant majority (74%) of consumers believe businesses bear the primary responsibility for sustainable packaging practices. Of those:
- 36% hold brand owners chiefly responsible
- 32% point to packaging producers
- 6% believe retailers should take the lead
Public support for EPR is even more pronounced in certain regions. A recent Harris Poll found that 81% of registered voters in California back the state’s Plastic Pollution Prevention and Packaging Producer Responsibility Act (SB 54). Interestingly, rather than favoring plastic ban, 63% of respondents prefer investing in improved plastic recycling infrastructure, signaling a desire for systemic change over simple restrictions.
In New York, another Harris Poll indicated strong bipartisan support (79% of both Republicans and Democrats) for "molecular recycling," also known as chemical recycling. This concept, which involves breaking plastics down into molecular building blocks for reuse as raw materials, aligns with circular economy goals.
A Shifting Map: Key State EPR Laws and Their Evolution
States are taking action, with Maryland and Washington recently becoming the sixth and seventh states to enact packaging EPR laws, joining California, Colorado, Oregon, Maine and Minnesota. Maine further updated its existing packaging stewardship program on June 17, enacting LD1423 to introduce a producer payment system that incentivizes the use of recyclable materials.
As of this writing, more EPR bills are pending in other states:
- New Jersey (A5009) – Targets a 65% recycling rate for packaging and paper products by 2036
- New York (S05062) – Defines producer responsibilities, provides lists of recyclable materials and exempt items
- New York (A01749) – Requires companies selling packaging materials to register with a stewardship organization to create a packaging reduction and recycling plan
- North Carolina (H882) – Mandates producer participation in stewardship organizations, submission of compliance plans, and funding of recycling programs
- Rhode Island (H6205) – Calls for producer contributions to support municipal recycling systems
While momentum behind EPR legislation is strong, state laws form a regulatory patchwork that demands continuous monitoring. Even some established EPR laws are still evolving. For instance, Oregon is delaying enforcement of HB3981’s recycling market requirements until July 1, 2026, and has temporarily restricted the state’s Department of Environmental Quality from enforcing those provisions.
Meanwhile, California’s landmark packaging law, SB 54, is undergoing revision. Following feedback about potential cost burdens for businesses and consumers, Governor Newsom has called for a regulatory redraft. Packaging industry groups are also urging New York lawmakers to take heed of California’s SB 54 pause and reconsider elements of their own EPR proposals.
Beyond the Bin: Understanding EPR-Accepted Packaging Solutions
The US Environmental Protection Agency (EPA) estimates that less than a third of municipal solid waste is ultimately recycled. The low recycling rate underscores the reality that recycling alone is insufficient as a sustainable waste management strategy.
However, as EPR programs prioritize post-consumer materials that are easy to recover and keep in use, not all packaging waste treatment options with sustainability claims are accepted for EPR compliance:
- Mechanical Recycling: Commonly used for recycling paper, plastic bottles, metal cans and glass containers. This method offers the strongest EPR compliance pathway due to its measurability and verifiability.
- Advanced (Chemical) Recycling: Refers to non-mechanical technologies, such as pyrolysis, gasification and depolymerization, which break down plastics at the molecular level to create new manufacturing feedstocks. These techniques seek to enhance the recovery of hard-to-recycle items such as multilayer film and plastic foam. However, concerns about pollution persists. In California, chemical recycling has been a sticking point causing delays in EPR implementation. Acceptance varies significantly across states, creating a fragmented legislative landscape.
- Composting: Typically limited to packaging compatible with organics, such as food-soiled natural fibers or bioplastics. This end-of-life disposal option usually requires third-party certification to verify compostability.
- Reusable Packaging: May qualify for fee reductions or credits as part of waste prevention efforts.
- Waste-to-Energy (WTE): Also known as energy recovery. WTE is generally not a good pathway for EPR compliance, as it doesn’t promote material reuse or avoid landfills. It is specifically excluded in the EPR laws of California, Colorado and Maine.
Navigating the Rapids: Overcoming EPR Compliance Hurdles
Packaging executives face compliance challenges on multiple fronts, including:
- Varied Definitions of "Producer": States differ in identifying the responsible party, whether it's the brand owner, importer, or manufacturer.
- Diverse Reporting Timelines and Formats: Each state sets its own schedules and data requirements, necessitating meticulous tracking and reporting systems.
- Cost Implications: EPR laws can be costly. According to CalRecycle’s estimates, California’s SB 54 will cost $3.6 billion annually, and about 546,269 businesses may raise their product prices due to EPR compliance.
- Treatment of Highly Recycled Materials: The paper industry group AF&PA, warns that implementing an EPR program without adjusting producer fees based on material recyclability would result in producers of highly recyclable materials unfairly “subsidizing” the costs of processing materials with lower recycling rates.
Charting Your Course: Strategic Recommendations for EPR Success
To ensure compliance and streamline operations, packaging executives should adopt proactive strategies:
- Track legislation continuously - many bills evolve quickly – paying specific attention to how each state defines producer, products and recycling. And look for bans of specific materials or exclusion of waste management methods.
- Engage early with PROs like the Circular Action Alliance (CAA) to clarify obligations.
- Centralize data systems to manage reporting across jurisdictions.
- Design for recyclability and compostability to reduce eco-modulated fees and boost compliance.
Staying proactive and compliant in this evolving environment is crucial. In reality, many laws affecting business operations go through the legislative and rulemaking processes quietly. Don't get caught off guard. With Industry Intelligence, you can anticipate change and act with confidence.
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