Impact of Packaging Regulation Changes on Manufacturers in 2026

Packaging regulations are creating new EPR costs, reporting duties, and design challenges for manufacturers in 2026. Companies need stronger compliance systems to manage different state and global packaging requirements.

Published Date: 27 August 2026
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Description- The packaging regulations in the US are forcing manufacturers to comply with EPR laws. Maine, Oregon, Colorado, California, Minnesota, Maryland, and Washington have cleared the laws.

In August 2026, according to the latest report of the European Union, ‘The EU’s Packaging and Packaging Waste Regulation (PPWR) generally applies from August 12, 2026. The UK’s packaging EPR system is already placing reporting and financial obligations on affected producers.’

Major Changes in the Packaging Industry in 2026

One of the major changes observed by the packaging industry is that the EPR is moving from policy discussions into operational work. It clearly means that the manufacturers need to identify the packaging they place in a particular market. The first step involves checking whether it is included under a state program or not. Then the next step involves getting the data reported and accounting for fees. For example, Washington requires covered producers to meet obligations under its Recycling Reform Act starting in 2026.

California is another important development. Its SB 54 packaging EPR regulations were approved by the Office of Administrative Law on May 1, 2026. The law also establishes a producer responsibility system that further covers packaging and certain single-use plastic food service ware.

The Cost Impact of EPR

When EPR reaches the end of its useful life, it changes the part of the cost linked with packaging. The producer fees are becoming an important factor in packaging budgets. Businesses should plan for a potential 15-40% increase in packaging-related spending as EPR fees phase in. The actual Effect will depend on the products, materials, volumes, and states involved. Hence, it is recommended that the range should be treated as a planning figure instead of a fixed increase for every manufacturer.

Oregon’s program is already operating. Other state programmes are moving through their own fee and reporting stages. Manufacturers should keep an eye on the next fee cycles in Oregon in July 2026, California later in 2026, and Colorado in January 2027. The broader lesson is simple: packaging costs canno longer be viewed as a cost of doing business.  Regulatory costs may become part of the total packaging cost as well.

Growing Compliance Complexity

Many manufacturers may face issues such as managing different state requirements. There is no single US packaging EPR system that covers every market. Every state can set its own rules for registration and fees. This creates extra work for companies that sell products over multiple states.

A manufacturer may use the same packaging nationwide, but they still need to determine how the packaging fits within different state programs. Real harmonisation around the US is unlikely in the near term. Hence, companies are recommended to build processes that can handle different requirements instead of waiting for the rules to become uniform.

EPR Affecting Packaging Design

EPR also has the capability to change the approach towards packaging itself. Compliance decisions are material choices, packaging structures, and recyclability. California is likely to have a strong influence because of the size of its market and the scope of its packaging rules. A few manufacturers prefer to redesign their packaging for a wider market instead of creating a separate version only for California. Maintaining different packaging for individual states can create more SKUs. It also increases inventory and production complexity. A single design that meets the strictest applicable requirement may be easier to manage in some cases.

Added Burden for Global Manufacturers

The impact intensifies for manufacturers selling outside the US. Companies selling in Europe will also need to follow the EU’s Packaging and Packaging Waste Regulation (PPWR). This adds another set of packaging requirements on top of the EPR rules in US states. Packaging designed for the US market may require changes in the European market. Manufacturers are also required to check the design specifications instead of making changes after production starts.

Steps to be taken by Manufacturers to Prepare

Packaging compliance needs to become part of regular business planning. The following steps can help manufacturers to manage current EPR requirements and prepare for new rules.

Specify the Location with higher Exposure- Start with the seven states that have enacted packaging EPR laws: Maine, Oregon, Colorado, California, Minnesota, Maryland and Washington. Then look beyond those states. Pending proposals in places such as Illinois, New York and Massachusetts should remain on the regulatory watch list. The goal is to know where your products may face new requirements before they take effect.

Build One Compliance Data System- Managing every state as a separate project may become time-consuming. A centralized system will help to keep the packaging specifications, material weights, sales information, and reporting records in one place as well. It also helps manufacturers to update information in case of change in new state requirements.

Keep Track of EPR Deadlines- Manufacturers are required to keep a clear calendar for registration and reporting. Oregon’s July 2026 deadline, California’s late 2026 timeline, and Colorado’s January 2027 fee date are important dates to watch. These dates give manufacturers more time to prepare for upcoming requirements.

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