The recent 2024 election, with Donald Trump’s return to the White House, is set to bring shifts in the packaging industry, particularly in regulations, tariffs, and materials.
At the recent Pack Expo in Chicago, industry buzz highlighted several key concerns about the future.
Packaging Industry Outlook
With Trump’s focus on deregulation and economic priorities, extended producer responsibility (EPR) laws—pioneered in states like California and Oregon—are unlikely to be adopted at a federal level anytime soon. This may leave companies navigating a complex web of state-level rules without nationwide consistency.
Despite these regulatory slowdowns, we may see an emphasis on chemical recycling, potential tariff adjustments, and new dynamics in the use of plastic.
Companies will likely need to adapt to avoid increased costs and stay compliant in larger, environmentally focused markets like California.
Here’s an in-depth look at these potential changes and what they mean for the future of packaging.
Key Takeaways
- Election results may slow federal packaging regulations
- State-level EPR laws will likely continue to expand
- Tariffs may raise costs for imported packaging.
- Chemical recycling could increase plastic use.
- Paper-based and recyclable packaging is on the rise
Tariffs and Import Costs
Trump’s trade policies may bring higher tariffs on imported packaging materials.
Tariffs are extra fees on foreign goods. They make imports more expensive. If tariffs rise, packaging materials like plastic, paper, and aluminium from overseas could cost companies much more.
To avoid these costs, some companies may start packaging in the U.S.
Producing domestically can help them sidestep the added expense of tariffs. This shift might lead to more local manufacturing jobs, which is a positive. However, it also means companies must invest in new facilities and change their supply chains.
For businesses, higher costs for materials mean tougher decisions.
Some may absorb these costs, lowering their profit margins. Others may pass the expense to consumers. This means prices on packaged goods, from food to household products, could increase.
In the end, both companies and shoppers may feel the impact of these changing import costs.
Extended Producer Responsibility (EPR)
Extended Producer Responsibility, or EPR, is a policy that places responsibility for packaging waste on companies.
EPR laws require companies to cover recycling and disposal costs for the packaging they produce. This approach aims to reduce waste and encourages using packaging that’s easier to recycle or reuse.
EPR laws are designed to hold companies accountable for the packaging they create. By requiring them to share waste management costs, EPR promotes more eco-friendly packaging choices (California Department of Resources Recycling and Recovery, 2021).
EPR is expanding at the state level.
California, Oregon, and Colorado already have EPR laws, and more states are expected to follow.
With Trump back in office, EPR laws may not become national anytime soon. The new administration has said they prefer fewer rules and more market-driven decisions.
Without a federal rule, however, companies face challenges. Different states have different rules, making it costly and complex for companies that sell products nationwide to stay compliant.
Plastic Packaging and Chemical Recycling
There is a growing federal focus on chemical recycling to manage plastic waste.
Chemical recycling breaks down plastics into their base materials, which can then be reused to make new plastic products. This method is gaining support from industry leaders and the current administration, who see it as a way to address plastic waste without banning plastic packaging.
This shift towards chemical recycling could slow efforts to reduce plastic use.
Traditional recycling has limits. In contrast, chemical recycling allows plastics to be reused in many ways. Supporters believe this technology could make plastic packaging more sustainable. It creates a “closed loop” for plastics, which may reduce the need for new, or “virgin,” plastic.
However, focusing on recycling alone might also lead to more plastic usage.
As chemical recycling improves, companies may feel less pressure to move to non-plastic materials. Knowing their plastic waste can be broken down and reused, they may rely even more on plastic. Critics worry this could mean more plastic in circulation rather than less.
Balancing chemical recycling with efforts to reduce plastic is essential. Watching how this technology is regulated will be key to managing plastic packaging responsibly.
Regional Packaging Laws: California’s Influence
California has some of the most progressive packaging laws in the country.
These laws aim to reduce waste and promote recycling. One key regulation is Senate Bill 54 (SB-54), which limits non-recyclable materials. Under SB-54, companies must phase out non-recyclable packaging and move toward recyclable, compostable, or reusable materials by 2032.
Because of California’s economic size, these laws have a far-reaching impact.
California has the largest economy in the U.S. and ranks among the world’s biggest economies. As a result, companies that sell products in California often adjust their packaging to meet its strict rules, even if they don’t operate within the state.
This creates a ripple effect. Other states may adopt similar laws, or companies may voluntarily expand California’s standards to avoid managing different packaging for different regions.
Complying with California’s rules can be challenging for businesses, but maintaining access to such a major market is often considered necessary.
As California pushes for greener packaging, its influence may lead to broader adoption of sustainable practices nationwide. This means California’s rules today could shape packaging laws across the country in the near future.
Technology and Software in Compliance Management
With each state creating its packaging laws, the need for compliance software is growing quickly.
For companies selling nationwide, keeping up with these state-by-state regulations is challenging. They must track changes, ensure their packaging meets each state’s standards, and adjust as laws evolve. This makes managing compliance manually nearly impossible.
To help, new companies like Lorax and Specright are developing specialized software. These tools can track packaging laws, flag potential issues, and offer solutions. Lorax focuses on helping businesses report their environmental impact accurately. Specright, on the other hand, provides tools for tracking materials, specifications, and regulations, helping companies streamline their compliance process.
As packaging regulations grow, these software tools will likely become essential.
Looking ahead, compliance software may play an even bigger role. As regulations become more complex, software must integrate advanced tracking and reporting features, helping companies adapt faster. The goal is to make it easier for businesses to comply without sacrificing efficiency.
Companies can focus on their products with compliance software, knowing they’re meeting the latest regulatory standards across multiple states.
Trends in Packaging Materials
As states like California set stricter environmental laws, many brands are moving toward paper-based and recyclable materials for packaging. California’s Senate Bill 54 (SB-54), which mandates that packaging be recyclable or compostable by 2032, is a significant driver of this shift. This law encourages brands to explore alternatives to plastic and consider eco-friendly designs that reduce waste.
Popular products, like Coca-Cola, may need to adjust their packaging and recipes. California and other states have restrictions on certain ingredients or additives that make recycling difficult. This means that to meet packaging requirements, companies might change ingredients or materials to comply with both recycling laws and regional regulations.
To handle these differences, many brands are adopting the strictest state standards—often California’s—as their baseline across the country. This approach simplifies production and avoids creating multiple versions of the same product for different states.
Overall, the industry is leaning towards sustainable solutions. Brands invest in recyclable, compostable, and paper-based packaging to stay compliant and meet consumer demand for greener products. This trend highlights a growing commitment to environmentally friendly practices in packaging across different regions.
Navigating Shifts in Packaging Policy and Compliance
The packaging industry faces major changes with Trump’s return to office.
Federal support for chemical recycling is expected to grow. This may encourage companies to rely on recycling technology rather than cut back on plastic use.
Still, state-led initiatives like California’s Senate Bill 54 will continue pushing for recyclable and compostable packaging. California’s standards are likely to influence other states and drive broader change.
Potential tariffs on imported materials could add costs. This might nudge companies toward more U.S.-based production, which could also mean higher consumer prices. Brands will need to adapt efficiently.
WITPAX will stay updated on new policies and guide companies through complex regulations.
Emerging tools from companies like Lorax and Specright will help brands meet varied state requirements.
Flexibility is essential in this evolving landscape. Companies must balance local rules, changing consumer expectations, and economic pressures. Agility will be key to meeting regulatory and market demands.