Packaging Industry Updates Every Buyer Should Know
New laws, trade shocks, and sustainability mandates are reshaping the future of the packaging industry.
These are hard-hitting changes that will directly impact your packaging procurement strategy.
Below, you’ll find the most critical updates every buyer needs to know—and clear steps to protect your bottom line.
Plastic Bag Bans Tightening Across U.S.
In September of 2024, California passed a new law (SB 1053) to close a loophole in its decade-old single-use plastic bag ban.
The update states that starting January 1, 2026, stores statewide can no longer offer any plastic bags at checkout.
Only recycled paper bags with at least 40% post-consumer recycled content may be provided at a minimum 10¢ charge.
By 2028, California will even raise the recycled content requirement for paper bags from 40% to 50%.
California isn’t alone.
According to the report, “Plastic Bag Bans Work,” at least 12 U.S. states now have single-use plastic bag bans, including:
- California
- Colorado
- Connecticut
- Delaware
- Hawaii
- Maine
- New Jersey
- New York
- Oregon
- Rhode Island
- Vermont
- Washington
The consensus is clear: single-use plastic bags are being phased out in favor of reusable or recyclable paper options.
Buyer Action Checklist
- Check Bag Laws: Check each state’s plastic-bag rules before ordering any bags.
- Switch to Paper: Use approved paper or reusable bags in every market that bans plastic.
- Plan for Bag Fees: Add thicker recycled paper and pass-through bag fees (like California’s 10¢) to your budget.
- Pick One Compliant Bag: Choose one eco-friendly bag that meets the strictest state standard and use it everywhere.
- Order Ahead: Place early orders for compliant reusable or recycled-paper bags to beat upcoming bans.
Trump Tariffs Affecting Packaging Costs
The Trump Tariffs are creating headwinds for packaging costs.
Tariffs ranging from 10% to 35% now affect a wide range of packaging-related imports, driving up the expense of production.
Packaging industry leaders are sounding alarms that these trade barriers undermine the integrated supply chains built under free trade agreements.
Many companies are responding by adjusting sourcing and even rethinking which materials they use in their packaging.
In the near term, higher costs seem inevitable and will likely be passed through to consumers in the price of packaged goods.
The situation remains fluid, however.
Ongoing negotiations could lead to tariff adjustments, and USTR may offer further exclusion extensions or other relief measures.
Importers should keep a close watch on these developments.
By staying agile, the packaging industry can navigate this turbulent period.
But there is no doubt that the Trump Tariffs have become a key factor in packaging economics, and managing these trade-related costs will remain a crucial challenge as long as the tariff policies persist.
Trump Tariffs Snapshot
Country
| Tariff Rate (Aug 2025)
|
China | 30% flat-rate duty on most imports. |
Mexico
|
USMCA-qualified items currently in a 90-day tariff pause through early Oct 2025.
|
Canada
| 35% duty on Canadian imports that miss USMCA origin rules after talks stalled.
|
European Union
| New U.S.–EU framework sets a 15% flat tariff on most EU goods (steel & aluminum still 50%)
|
Brazil | A blanket 50% tariff on most Brazilian exports to the U.S.
|
India
| 25% tariff plus potential “penalty” tied to Russia-related sanctions.
|
South Korea | 15% tariff |
Buyer Action Checklist
- Check Tariff Codes: Map every SKU to its Harmonized Tariff Schedule (HTS) code and country of origin so you know exact exposure by country.
- Confirm USMCA Docs: Validate your USMCA paperwork now. It’s your only shield against the 25%–35% U.S. duties.
- Run Cost Tests: Stress-test costs for the Aug 12 (China) and Oct (Mexico) deadlines, and build contingencies for snap-back hikes.
- Line Up Backup Suppliers: Arrange alternate or domestic sources for key papers, resins, and metals before the Trump Tariffs squeeze capacity.
- Plan Material Swaps: Replace PET with recyclable paper products to offset category-specific surcharges.
- Add Tariff Clauses: Insert tariff-adjustment language in all 2025 contracts so sudden duties can be passed through or renegotiated.
- Watch Trade Updates: Monitor USTR and CBP notices weekly. Exclusions or grace periods can appear, then vanish, overnight.
State Laws Requiring EPR Programs
One of the biggest shifts in the packaging industry is the rise of Extended Producer Responsibility (EPR) laws in the United States.
EPR programs make product and packaging producers financially responsible for the recycling and disposal of their packaging.
Until recently, the U.S. had no such laws for packaging, but that’s rapidly changing on a state-by-state basis.
As of mid-2025, seven states have passed EPR legislation, according to the Sustainable Packaging Coalition.
2021-2022:
- California
- Oregon
- Colorado
- Maine
2024:
- Minnesota
2025:
- Washington
Maryland
From a retailer’s point of view, 1 in 5 Americans live in a state covered by an EPR program.
More states in the Northeast and elsewhere are actively considering similar bills each legislative session.
While the specifics vary by state, the common thread is that producers will pay fees to fund recycling programs and meet recycling targets.
For instance, under Minnesota’s new Packaging Waste Reduction Act, producers will be required to join a Producer Responsibility Organization and start paying for a portion of recycling costs by 2029, ramping up to covering 90% of recycling costs by 2031.
Oregon and California’s programs officially kicked off in 2025, with producers registering and reporting packaging data ahead of fee collection.
In Colorado, companies had a mid-2025 deadline to submit packaging supply data to the state’s Producer Responsibility Organization, which will inform fee schedules.
Easily recyclable materials may incur lower fees, while hard-to-recycle plastics incur higher costs.
This is an eco-modulated fee structure intended to incentivize better packaging design.
Buyers Action Checklist
- Register & Report: Enroll in each Extended Producer Responsibility (EPR) state and log the weight and material of every package you ship.
- Budget for EPR Fees: Add Extended Producer Responsibility (EPR) surcharges to your cost models—suppliers will pass them on.
- Lighten & Redesign: Remove excess material and choose formats that curbside programs actually recycle.
- Boost Recycled Content: Meet or beat the strictest state Post-Consumer Recycled (PCR) mandate to future-proof your SKUs.
- Secure Supplier Data: Require vendors to supply Extended Producer Responsibility (EPR) data, fee estimates, and reporting support.
- Track in One Dashboard: Build an internal dashboard that monitors packaging volumes, fees, and deadlines by state.
Minimum Recycled Content Laws
To complement EPR, several U.S. states have enacted minimum recycled content requirements for packaging products.
These laws mandate that certain packaging must include a specified percentage of post-consumer recycled (PCR) material.
The aim is to create market demand for recycled materials so that all those EPR-funded recycling programs have a stable end market.
As of 2024, at least five states require recycled content in plastic packaging, with some of the most comprehensive being California, Washington, and New Jersey.
Buyer Action Checklist
- Check PCR Rules: Review each state’s Post-Consumer Recycled (PCR) laws and apply the strictest target to every product line.
- Get PCR Proof: Require suppliers to certify their Post-Consumer Recycled (PCR) percentage and keep those documents for audits.
- Spot-Check Risky SKUs: Compare high-risk SKUs, like plastic mailers, against the toughest Post-Consumer Recycled (PCR) mandate you face.
- Secure PCR Supply: Lock in PCR resin and recyclable paper contracts early to avoid price spikes and shortages.
- Partner With Recyclers: Work with vertically integrated recyclers to guarantee steady, high-quality recycled feedstock.
- Showcase Recycled Content: Highlight Post-Consumer Recycled (PCR) content on packaging and in marketing to satisfy legal and consumer expectations.
Packaging and Labeling Laws for “Truth in Recycling”
It’s not just the composition of packaging that’s regulated—even what you call your packaging is under scrutiny.
California’s law SB 343 is a prime example of a new wave of truth-in-labeling laws.
SB 343 prohibits the use of the recycling symbol—the “chasing arrows” icon—or any claims of recyclability on packaging unless strict criteria are met.
Essentially, to label a product or package as “recyclable” in California, that item must be collected and actually recycled at scale.
This means that at least 60% of Californians must have access to curbside programs that recycle it, and recycling facilities must routinely reprocess that material into feedstock.
If a packaging type doesn’t hit those thresholds, it cannot display the arrows or otherwise advertise itself as recyclable.
SB 343’s compliance deadline was recently set for October 4, 2026, by which time all affected companies must remove unqualified recycling labels.
Other states like New York and New Jersey have contemplated similar “recyclability labeling” bills.
In the meantime, the U.S. Federal Trade Commission is reviewing updates to its Green Guides—the guidelines for environmental marketing claims.
The FTC may formally tighten rules on recyclability claims in the next couple of years, which could apply nationally.
Buyer Action Checklist
- List Your Claims: Record every SKU that carries a recycling logo or “100% recyclable” claim.
- Check State Rules: Verify each SKU meets recyclability standards in key states. Start with California’s pre-certification training.
- Fix Labels: Remove or revise logos on items that fail those state tests.
- Swap Problem Packs: Replace hard-to-recycle films or multi-layer packaging with widely recyclable formats.
- Save Proof: Collect supplier letters or certifications for every claim and store them in one auditable place.
- Brief Your Team: Update marketing, design, and legal so everyone uses the current claim rules.
- Audit Each Year: Run an annual packaging-claim review to catch new laws early.
Simplify Compliance With Creative Retail Packaging
Regulations keep changing, but your workload doesn’t have to grow.
We track every rule, vet every material, and coordinate every detail, so you stay compliant without the stress.
Here’s how we make compliance effortless for your brand:
- Regulation Radar: You receive real-time alerts on every federal and state rule change, letting you act before anyone else.
- Smart Sourcing: Your product line uses only pre-vetted materials that already meet recycled, compostable, or recyclable standards, so launches happen without compliance worries.
- Tariff Shield: Your diversified supplier network absorbs tariff shocks, keeping budgets steady while competitors scramble.
- Label Proofing: All specs and certificates sit at your fingertips, giving you instant proof for auditors and customers and boosting your credibility.
- Collaboration: Marketing, legal, and operations stay in sync from day one, so projects run smoothly and you shine as the go-to problem solver.
You stay compliant, sustainable, and on budget without juggling all the moving parts yourself.
Ready for stress-free packaging?
Join our mailing list to get fast alerts and tips that keep your brand ahead.