Why brands are watching EPR packaging laws
Extended producer responsibility laws have gained traction as a way to control the end-of-life of products across sectors, from batteries to mattresses to pharmaceuticals.
But one area that's specifically on the rise is EPR laws around packaging. While laws vary from state to state, these rules generally require companies that sell products in paper or plastic packaging to pay fees that will be used to support recycling, reuse or other processing services. The goal is to incentivize companies that make consumer packaged goods to use materials that have more sustainable and eco-friendly end-of-life management.
Sydney Harris, policy director at reuse advocacy nonprofit Upstream, said a common thread is that packaging EPR laws apply to consumer-facing packaging like paper or plastic. Some might include commercial or business-to-business packaging, as well.
"We’re talking about people who put branded packaging on the market for consumers to buy," she said.
EPR laws around packaging are specifically on the rise as policymakers, consumers and brands rethink the effects of plastic and other materials on the environment. The Product Stewardship Institute says less than 9% of plastic packaging is ever recycled, while less than half of all packaging gets recycled.
Seven states now have packaging EPR laws: Washington, Oregon, California, Colorado, Minnesota, Maine and Maryland. Oregon's programs took effect last summer, after it became the second state after Maine to pass an EPR packaging law back in 2021. But it's now on hold after a state court granted a preliminary injunction last month in a lawsuit from the National Association of Wholesale Distributors seeking to stop the law.
But a host of deadlines are coming up this year that will affect producers. Each is on its own timeline: In Maine, states have to register with the state by May. Minnesota, Colorado and Maryland all share an upcoming deadline for producers to register by July 1. California has released some preliminary guidelines for its packaging EPR program with the goal of implementation in 2027.
Here's a primer on what's happening with EPR laws and why more brands are starting to pay attention to what their packaging is made of.
EPR packaging laws may come in patchwork form, but there are a few throughlines
One hurdle brands may face in complying with EPR laws is the varying regulations across state lines. Beyond regulations stemming from laws already passed, there are pending proposals in Georgia and Wisconsin. A proposal in Tennessee already didn't make it out of a hearing process this year.
"With more state legislatures actively considering packaging EPR laws each year, absent federal action, companies should expect continued expansion of a patchwork of state‑level programs," read a January guidance from the law firm Holland & Knight.
Still, there are a few throughlines across EPR proposals that companies may expect as the laws are finalized:
- Companies that sell packaged goods may have to register with that state's Producer Responsibility Organization
- EPR laws may come with fees based on packaging type and its ability to be recycled or reused
- Companies may need to report how much packaging they use
EPR is serving as a jumping-off point for reuse initiatives
One way brands and retailers are complying with EPR laws is by considering packaging that may never go into a trash or recycling bin. That means reusable packaging, or containers that get cleaned up and reused for the next customer.
For companies, it may mean lower fees or fines than using disposable packaging. Harris said beverages, personal care and grocery items are some of the top categories being considered for reuse.
The bottom line, Harris said, is that compliance will differ from company to company and sector to sector.
“We can have multiple modalities. Some stuff will be package-free refills in the store, and other stuff will be a package that acts like a single-use package, but when I return it, instead of getting crushed and recycled, it actually just gets reused," she said.
Will EPR laws be a cost driver, or growth engine?
Those who have opposed some EPR laws have cited costs and concerns that will affect businesses. The National Association of Wholesale Distributors, for instance, says businesses face "exorbitant fees" and unclear regulations under Oregon's Plastic Pollution and Recycling Modernization Act.
"Rather than improve recycling outcomes, Oregon’s program operates as a closed regulatory system run by private interests, with binding financial consequences for businesses that have no control over packaging design or disposal," said Brian Wild, Chief Government Relations Officer, in a November press release.
But Harris from Upstream said businesses could stand to gain. Fees and funds derived from EPR laws may help support new recycling infrastructure, for instance, to facilitate the transition to new systems. And the U.S. Plastic Pact is one organization looking to help businesses reduce their costs as they transition to sustainable packaging.
Then there's the chance to gain market share among customers seeking a cleaner experience. PwC's 2025 State of Decarbonization report, for instance, found that products with sustainability attributes can achieve revenue increases of 6-25% compared to those without them.
“Consumers prefer reusable packaging because it’s perceived as nicer, and it actually is nicer; it’s more durable, it feels like better quality, and that makes people perceive the product as more valuable," she said. “Nobody likes flimsy packaging or struggling to open plastic thermoforms.”
-Melissa Daniels, special projects editor
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