Time’s running out for EPR compliance: Steps for consumer products companies

1.  Clarify “producer” and what packaging materials are covered

Understand the nuances in what materials are covered and which company in the value chain is considered responsible for those materials under EPR laws. In private-label or co-manufacturing arrangements, for instance, unclear contract terms can lead to double billing or regulatory limbo. You may need to:

• Determine what materials are covered and who is the obligated producer in each state.
• Register your business and start communicating responsibility with partners (such as distributors or manufacturers).
• Maintain a centralized database linking each product to associated packaging materials (primary through tertiary) and a responsible entity by state.
• Amend master services and copacker agreements to define EPR obligations, including branding and packaging requirements.

2.  Map your products to packaging data and calculations

EPR fees are calculated by weight and material category (classifications that vary greatly by state). Calculating fees in alignment with one of the accepted approaches often requires at minimum an estimated bill of materials for each product and/or covered material category. This action requires you to:

• Develop a system that connects each product to all related packaging components (from primary to tertiary), specifying the material category and weight for each.
• Decide on an accepted calculation method, such as the specific material reporting method.
• Add California source-reduction data (plastic component counts, eliminations, reuse/refill metrics) to the reporting framework early to avoid rework.

3.  Build a three-year fee forecast

EPR fees could start influencing product margins soon. Not all packaging is treated equally—a steel can and plastic cling film, for instance, may carry very different costs. At scale, those differences add up, making it critical to forecast and adjust pricing models early, especially in industries where executing packaging or supplier changes requires months of foresight.

• Once registered for the CAA, evaluate where high fees are stemming from based on the portal’s fee calculations for your covered materials. Flag high-cost SKUs for redesign review and consider alternative types of packaging materials or reducing packaging entirely.
• Identify areas to improve internal data collection. If the estimation is off, you might be paying more than you need to. Reliable data reduces estimation reliance and increases reporting accuracy.

Last-minute EPR costs don’t just squeeze margins—they force price hikes that reach customers and throw trade promotions off track. Forecasting these fees months in advance keeps pricing predictable and protects your relationships.

Key considerations for 2026

1.  Redesign high-fee products/covered materials

The EPR fee structure penalizes certain formats and rewards recyclable, plastic-free or post-consumer recycled (PCR)-rich packaging (material used and discarded by consumers, collected through recycling programs, and then reprocessed).

• Based on your forecast, prioritize your worst offenders for redesign.
• Conduct a sustainability-focused lifecycle analysis to identify opportunities and take advantage of incentives and bonuses in certain states.
• Prototype and validate alternatives by mid-2026.
• Incorporate California’s required plastic source-reduction targets (10% by 2027) into redesign planning, identifying opportunities for reuse/refill, elimination and rightsizing.

2.  Eliminate banned packaging materials

Separate from EPR, many states have implemented bans on specific packaging chemicals. For instance, over a dozen states now prohibit intentionally added PFAS (often described as forever chemicals) in food-contact packaging, and several others ban expanded polystyrene (EPS) foam food ware. Enforcement mechanisms vary; consider the following actions:

• Replace PFAS liners with silicone or noncoated alternatives.
• Transition EPS trays to recyclable polypropylene or molded fiber. For California EPR compliance, assess whether any remaining EPS can meet required recycling rates; if not, plan to phase it out before 2026.
• Maintain supplier compliance declarations and full material traceability.

3.  Align EPR data with greenhouse gas (GHG) emissions Scope 3 reporting

The same foundational data you report for EPR (e.g., packaging weights, materials, PCR content) may feed directly into Scope 3 emissions disclosures and environmental, social and governance reports—particularly for Category 1 (purchased goods and services) and Category 12 (end-of-life treatment of sold products). Aligning these data sets into a central location or technology platform could help you streamline your GHG inventory calculations and eventual audits (e.g., under California Senate Bill 253).

The takeaway

Middle market companies, particularly brand owners in the consumer products value chain, face the greatest EPR fee intensity and the tightest resource constraints. Treat EPR like any other key operation by mastering your organization’s data, bringing clarity to your contracts and designing ahead of regulation.