Posted on January 12, 2026

Extended Producer Responsibility (EPR) laws are rapidly changing how brands manage packaging costs, compliance, and material selection. For CPG companies, understanding EPR is no longer optional—it is becoming a core part of packaging strategy. EPR regulations shift responsibility for packaging waste from municipalities to producers. This includes funding recycling programs, meeting reporting requirements, and paying fees based on packaging material type, weight, and recyclability.

Where EPR Laws Are in Effect
States such as California, Colorado, Maine, and Oregon have already passed EPR legislation, with additional states expected to follow. These laws typically apply to primary and secondary packaging materials, including paperboard, plastic packaging, flexible films, glass, and metal.

How EPR Impacts Packaging Costs
EPR fees are structured to reward recyclable, lower-impact packaging and penalize complex or hard-to-recycle materials. Over time, brands using multilayer substrates, excessive packaging, or non-recyclable components may face higher compliance costs. This makes packaging design and sourcing decisions increasingly important.

Why Packaging Strategy Matters
A vendor-neutral packaging approach allows brands to evaluate alternative materials, formats, and manufacturing partners without being constrained by a single supplier’s capabilities. This flexibility helps reduce EPR exposure while maintaining shelf presence, performance, and brand consistency.

Preparing for EPR Compliance
Even if your business is not currently subject to EPR laws, proactive planning is critical. Reviewing your packaging mix, simplifying material structures, and improving supplier data transparency can significantly reduce future costs and compliance risk. At Direct2Source, we help brands optimize packaging for cost, compliance, and performance—connecting you with the right manufacturing solutions without bias.