In the world of packaging, the call for sustainability is louder than ever. As online shopping and e-commerce grow, so does the volume of packaging waste. Oversized boxes, excessive void fill and materials that are difficult to recycle are no longer just inefficiencies, they’re liabilities. Governments, regulators and consumers are all demanding a shift to more sustainable packaging practices, and businesses across the supply chain must adapt.

A growing policy approach gaining traction in the U.S. is Extended Producer Responsibility. Long established in parts of Europe, EPR is now becoming a central part of regulatory conversations. As more states adopt legislation, producers and businesses that adapt early to new and sustainable packaging standards will not only avoid penalties and operational disruptions, but also gain an advantage against non-complying competitors. 

At its core, EPR requires producers that manufacture and distribute packaging materials to take responsibility for their end-of-life products.

Here’s how it works: Let’s say a retailer produces a makeup product sold in recyclable plastic packaging and places it on store shelves in California, which has an EPR law for packaging. The consumer buys and uses the product, then disposes of the packaging in a recycling bin. Under California’s EPR program, the producer must pay fees based on the type and amount of packaging used, helping to fund the collection, recycling and proper disposal of that waste.

Additionally, EPR mandates producers to join a Producer Responsibility Organization, a manufacturer-led organization that provides producers with the resources to comply with EPR standards. Once producers join a PRO, they’re required to share recycling data, pay fees that help fund local recycling services, and recycle packaging material from their end-of-life products. 

Joining a PRO makes complying with EPR laws a smoother and streamlined process. Its benefits include:

• Meeting the legal requirements for EPR laws,
• Reducing costs for recycling and waste management,
• Increasing public awareness of packaging and recycling waste, and
• Assisting in reporting recycling data to local governments.

Ultimately, EPR policies aim to reduce packaging waste, increase recycling rates and encourage businesses to invest in sustainable packaging. The focus on lifecycle responsibility ensures that packaging is designed not just for efficiency but for full recyclability.

In 2025, 12 states have introduced EPR legislation for packaging, with active laws now in place in California, Colorado, Maine, Minnesota and Oregon. Maryland and Illinois are currently in the process of completing a recycling needs assessment before moving forward with passing packaging EPR laws. 

While some policies have passed, the rulemaking and implementation of EPR is still ongoing. For many of the states that are in the process of passing a policy, rulemaking and implementation will not occur until the next few years. For example, Oregon will introduce several key developments on July 1, 2025, including:

• Implementation of the Circular Action Alliance (CAA), the state’s designated PRO;
• Permitting commingled recycling processing facilities, and
• The launch of local collection programs and contamination reduction initiatives.

For producers and brands, aligning with EPR isn’t just about compliance. It’s also an opportunity to innovate. One key strategy is to evaluate how packaging systems can be optimized to reduce material usage and improve recyclability. Technologies that enable fit-to-size packaging, for example, offer a practical solution. 

Fit-to-size packaging systems use 3D scanning to measure each order with precision and automatically construct a perfectly sized box around it. This method reduces material usage and eliminates the need for filler material, such as air cushions or bubble wrap, by custom sizing, constructing and labeling each package. 

By reducing packaging material at the source, these technologies can help businesses stay ahead of EPR requirements while improving sustainability metrics, customer satisfaction and its bottom line.

The implementation of EPR policies is a signal that the packaging industry is entering a new era. As more states move toward adopting EPR legislation, businesses should proactively assess how these laws will impact their packaging and supply chain operations. With strict repercussions in place for businesses that don’t comply with EPR standards, EPR should further be seen as an opportunity for business growth. 

EPR represents more than a compliance challenge. It’s a catalyst for transformation. Companies that take the time to rethink their packaging strategies, from design to disposal, will be better positioned to meet consumer expectations, achieve sustainability goals and lead in a changing regulatory environment.

David Gray is senior vice president of sales with Sparck Technologies.