Packaging waste has grown to represent more than 40% of total waste produced in the U.S. and abroad. 

The increase is attributable to a variety of factors, not the least of which is the rapid growth of e-commerce. Others include the growing need for convenience, safety concerns and mass customization.

Walk down any grocery aisle, and you’ll see a wide assortment of single-serving packaging and an expanded array of product sizes and formats. And while that’s been great for consumers and manufacturers, the impact of plastic, foam and film on our landfills is real. 

As the need for better and more efficient ways to dispose of waste grows, so does the expense and resources needed to deal with it. Recycling alone is insufficient to manage packaging waste effectively. A successful plan also needs to include a reduction on overall packaging, including compostable and refillable formats.

There are more than 9,000 municipal recycling programs across the U.S. At the end of its useful life, packaging either becomes part of the solid waste stream or is separated through municipal or private curbside recycling. Recycled packaging ends up at one of approximately 375 material recovery facilities (MRFs). And while this is a good start, there are challenges that impede the system’s execution. Despite the best intentions, some waste fails to reach designated facilities for reasons ranging from the absence of a municipal recycling program to consumer apathy or confusion over what’s recyclable. In addition, more than 20% of the material that makes it to the MRFs can’t be recycled due to contamination.

The processing capacity needed to handle the current amount of packaging is 20 years behind the times. Most MRFs need investments in new technology and equipment just to keep up with today’s volumes.

Complexities of Recycling

The Yale School of Management describes some of the challenges of recycling: 

Rigid plastics with numbers one (PET), two (HDPE), and five (PP) are easier to recycle and have strong end markets. But threes (PVC), sixes (PS), and sevens (other) have very little demand from re-processors, so the MRFs don’t prioritize sorting and baling them. Then there are the flexible plastics — plastic bags, sacks and wraps. Flexibles can’t go to MRFs because they get wound around machinery and disrupt the sortation process. These tend to be number fours (LDPE) and sometimes twos (HDPE). They must be returned to retail stores for recycling through a different channel.

Extended producer responsibility (EPR) legislation provides solutions and investment to mitigate the increasingly challenging objective of recycling waste. The intention is to shift the costs associated with recycling waste from the taxpayer to the producers or brand owners whose product is using the packaging. EPR legislation will provide the financial investment into the MRF infrastructure by creating a shared responsibility for the collection, recycling and processing of post-consumer packaging. As this legislation expands in the U.S., it will become increasingly challenging for manufacturers, food producers, brand owners, retailers and e-commerce businesses to adjust to EPR requirements.

A Movement Gaining Momentum 

Long established in Europe, EPR laws are now in place in Canada, Asia and South America. As state and local governments weigh the expense and infrastructure needed to deal effectively with packaging waste, EPR is increasingly finding its way to legislative floors in the U.S. as well. To date, Maine, Oregon, California and Colorado have enacted EPR legislation, and more than 30 pieces of EPR legislation have been proposed nationwide in 2023.

While the details of the laws vary, EPR legislation shares three common goals to:  

• Reduce overall packaging and packaging waste;
• Encourage and provide consumers with the ability to recycle, while building financially healthy markets for recyclables, and
• Make producers share the financial responsibility associated with recycling their packaging.

Consumers want to know that the products they purchase, and the packaging that’s used, aren’t harming the environment. According to the recently released 2023 Buying Green Report, there’s a growing willingness to pay more for products packaged sustainably. Eighty-two percent of respondents expressed a readiness to invest more in sustainable packaging — an increase of four points from 2022, and eight points since 2021. These findings send a powerful message: Even amid a worsening economic situation, the environment remains a top priority for consumers. 

Who’s Impacted by EPR?

EPR legislation will have the most impact on businesses involved in manufacturing or packaging products that are distributed through retail outlets or e-commerce to end users. The rule of thumb is that, if packaging ends up in the consumer’s curbside trash or in recycling, it will be included. Retailers can also be considered a “producer” if they private-label a product whose packaging ends up in the consumer waste stream. 

Packaging materials such as single-use plastic, chipboard, corrugated cartons and flexible films will fall within the scope of EPR coverage.

In practice, manufacturers and distributors will pay a fee, or dues, based on the number of units they ship and the attributes of the packaging (size, weight, and material) they use to present, preserve, protect and transport their products. A producer responsibility organization (PRO) collects the fees and works within the state to provide local funding for increasing the number of recyclables and recycling rates.

The level of government or stakeholder oversight varies by state. However, in most cases the PROs are responsible for administering EPR compliance, collecting funds, assisting producers with compliance, and providing technical assistance.

Compliance with the regulations stand to affect manufacturers in multiple ways. From an operational standpoint, they include:

• Design phase. EPR might necessitate changes in a product’s package design to make the packaging more recyclable or environmentally friendly. This can entail a shift in materials used, product structure, and even the product’s overall functionality.
• Collection and recycling systems. Manufacturers might choose to set up their own systems to collect and recycle their packaging post-consumer. This could include return centers, coordination with third-party recyclers, or establishing other collection mechanisms. This could be an alternative to a fee-based program, should it be approved by a PRO.
• Supply chain adjustments. Depending on the materials required for a compliant design, manufacturers might need to adjust their supply chains. This could mean sourcing alternative materials or working with suppliers that adhere to certain environmental standards.
• Reporting. Manufacturers will need to track and report on their packaging to the PRO. They might also choose to conduct a lifecycle analysis of their packaging.

Financial impacts include:

• Increased costs. Applying resources for reporting and supplier coordination, and setting up collection, recycling or disposal systems, can be costly. Additionally, the redesign of products or other changes in the supply chain can entail increased expenses.
• Fees and penalties. Non-compliance might also result in fines.

How a Packaging Specialist Can Help

The new legislation is complex and can vary by location, and businesses will experience some growing pains and risks as they learn to adapt. Working with a knowledgeable packaging partner to help prepare for these changes is essential. The right partner can help producers understand the legislation and requirements and provide solutions to help keep EPR fees cost-neutral. Ways in which a packaging specialist can help include:

• Optimize packaging for sustainability. Packaging specialists and their teams of engineers and designers can audit existing packaging to recommend and optimize packaging, reduce the cost and amount of materials used, incorporate recycled or recyclable materials, and ensure that packaging is compliant with EPR regulations.
• Facilitate packaging lifecycle analysis. Specialists can evaluate the environmental impact of packaging from sourcing to disposal, to identify areas and provide solutions for improvement.
• Stay updated on legislation. Regulations vary by region and can change over time. A packaging specialist can help keep track of relevant EPR legislation, ensuring that manufacturers remain compliant.
• Provide cost-effective solutions. While sustainability is a primary goal, cost-effectiveness is crucial for any business. A specialist can balance the two aspects, finding solutions that minimize environmental impact without significantly raising costs.
• Coordinate with suppliers. Specialists work with suppliers to ensure that they’re aligned with EPR requirements and are providing sustainable materials.

EPR legislation is pushing manufacturers to adopt more environmentally friendly practices throughout their products’ lifecycle. A packaging specialist can be invaluable in helping them navigate these changes, while balancing compliance with cost-effectiveness and operational feasibility.

Gary S. Cohen is a sustainability and food packaging specialist with SupplyOne.