At a Glance
- EPR fees are now showing up on invoices, and many food brands are paying more than they need to because they don’t understand how the rules work.
- Businesses that use recyclable, single-material packaging (also called mono-materials) often qualify for lower fees, while heavier, multi-layer packaging can drive costs up.
- In most cases, it’s the brand owner, not the packaging supplier, who is responsible for paying EPR fees — especially for labeled food products.
- Companies that audit their packaging, simplify materials, and set up better tracking systems are gaining a serious cost advantage over those waiting to catch up.
Food business owners are staring at invoices they don’t fully understand. With looming Extended Producer Responsibility (EPR) fees on the horizon, many are trying to make sense of what they’ll owe, how the fees are calculated, and why some packaging types will cost more than others. Finance teams are asking questions that packaging suppliers can’t answer. Competitors seem to know something you don’t, but finding reliable information feels impossible.
The real problem isn’t the fees themselves — it’s the confusion. EPR legislation includes terms such as “producer responsibility organizations” and “mono-materials.” State websites are buried in regulatory language that may as well have been written in legal hieroglyphics. Every month you put off learning about EPR, you might be overpaying for packaging. These costs made sense before the rules came into play.
The Cost of Confusion
Companies are sticking with familiar packaging because they don’t understand their alternatives. They miss chances to cut fees because they can’t identify which materials qualify for lower rates. Most importantly, they’re making decisions in the dark while competitors who figured out EPR are gaining significant cost advantages.
At Inline Plastics, we’ve been solving packaging challenges for fresh food companies for over 55 years. We’ve successfully adapted to many changes in the industry along the way. This article will cut through the confusion and show you exactly what EPR means in simplified terms, which packaging choices will cost you the most money, and the practical steps that help you manage EPR fees effectively (and no, you won’t need a legal dictionary).
DISCLAIMER: This article provides general information about EPR legislation and is not legal advice. It does not replace the advice of a qualified attorney. For specific legal guidance regarding your business and EPR compliance, please consult with a lawyer who specializes in environmental or regulatory law.
Understanding the New(ish) Packaging Landscape
Let’s say you’re running a successful food business, and suddenly you receive information about new packaging responsibilities. Instead of panicking, you see it for what it is — a new cost structure that requires planning and preparation. That’s the reality of EPR. Companies that grasp it early save money and avoid compliance headaches.
Extended Producer Responsibility makes companies financially responsible for their packaging throughout its lifecycle. Think of it as a shift from taxpayer-funded recycling programs to producer-supported systems. The companies putting packages (more on who is responsible for paying EPR fees later) into the market now help fund collection, recycling, and disposal programs.
It’s important to note that it’s not just food packaging that is affected. Any packaging, from children’s toys to power tools, is affected by this legislation.
The system creates clear incentives for better packaging choices. Companies that use recyclable packaging pay less in fees. In contrast, those with harder-to-recycle options face higher costs. This means your packaging decisions now have a direct impact on your compliance costs.
EPR programs are currently in seven states, though some are still in the process of officially being implemented: Oregon, Colorado, California, Minnesota, Maine, Washington, and Maryland. Companies operating in these states are learning the system and adapting their packaging strategies accordingly. As more states adopt similar programs, businesses with EPR experience will be better prepared for expansion.
How Food Packaging is Affected by EPR Programs
Food packaging receives significant attention in EPR programs. Understanding this prepares you for what’s ahead.
This packaging is often considered single-use. This creates a lot of waste, and cities find it difficult to manage. EPR programs intend to move the cost of managing waste from taxpayers to the companies that produce it.
Many food packages use materials that protect products well but create end-of-life challenges. Some multi-layer packaging, certain adhesives, and specific plastics are great for food safety and shelf life. However, they can be very hard to collect and recycle cost-effectively.
The fees are calculated by weight, so every ounce adds to your costs. Companies pay based on how many pounds of packaging they put into each state’s market, with higher rates for materials that are harder to recycle. This means packaging decisions that seemed cost-effective before EPR can become expensive quickly.
Primary, Secondary, and Tertiary Packaging Under EPR
Not all packaging is treated the same way under EPR. To understand your fees, it helps to break packaging into three layers:
- Primary Packaging: This is what directly touches the food, like a salad container, beverage bottle, or yogurt cup. Since it is consumer-facing and usually ends up in household waste, EPR fees focus most heavily here. The recyclability of these materials will make the biggest difference in your costs.
- Secondary Packaging: This is what groups multiple primary packages together — such as a cardboard sleeve, shrink wrap, or box that holds several yogurt cups. Secondary packaging usually still counts under EPR, but its impact is smaller because it’s often discarded before reaching the consumer. Still, you’ll need to track and report it.
- Tertiary Packaging: This is the bulk packaging used for transport and warehousing, like pallets, crates, or stretch wrap. Some states exclude this layer because it rarely enters household waste streams, but others may require you to report it. Even if the fees are lower or excluded, knowing how much you use is key for accurate compliance reporting.
In simple terms: The closer the packaging is to the consumer, the more it usually matters for EPR fees.
EPR Impact
| Primary | Salad container, yogurt cup, soda bottle | Highest impact — consumer waste, most fees tied here |
| Secondary | Cardboard sleeve, shrink wrap, multi-pack box | Moderate impact — still reportable, but usually lower fees |
| Tertiary | Pallets, crates, bulk stretch wrap | Lowest impact — sometimes excluded, but may still require reporting |
Who Actually Pays EPR Fees?
Understanding who’s responsible for EPR fees is crucial because it might not be who you think. In almost all cases, the “producer” isn’t the company that manufactures the packaging — it’s the brand owner who puts their name on the product.
Take running shoes as an example: A major brand might not manufacture its own shoe boxes, but because those boxes display the brand’s logo and the brand controls what is sold into the market, that brand is responsible for the EPR fees on the packaging. The same goes for food businesses. If you sell Brand X Salad Mix in plastic containers, Brand X covers the EPR fees. This happens even though they didn’t produce the containers.
This means if you’re a food company buying packaging from suppliers, you’re likely the one who’ll be paying EPR fees, not your packaging supplier. You’re putting branded products into the market, making you the “producer” in EPR terms.
There are some exceptions, particularly with unbranded food service items like takeout containers that go to restaurants. In these situations, the responsibility often goes to whoever makes the first sale in the state. This is usually a distributor, but it can also be the packaging manufacturer. But for most food businesses selling branded products, the brand owner pays the fees.
How Are EPR Fees Collected and Managed?
EPR programs don’t operate directly through state governments, but they do have their own version of “hall monitors.” States require companies to create Producer Responsibility Organizations (PROs) to manage the programs. PROs are groups set up by the industry. They collect fees, run recycling programs, and handle reporting.
The largest PRO for packaging is the Circular Action Alliance (CAA). Around 20 packaging producers started this non-profit. CAA is currently taking the lead in most states with EPR programs, though other PROs could apply to operate in these markets.
This means you won’t be sending EPR fees directly to the state of Oregon or California. Instead, you’ll collaborate with CAA or another PRO. They take care of fee collection, manage programs, and handle annual reports. The PRO sends plans to the state.
These plans detail how they will:
- Finance recycling infrastructure
- Obtain packaging data
- Meet recycling goals
Each state sets its own requirements and timelines, but the PROs handle the day-to-day operations. You need to track packaging data by state and material type. The PROs require this info to calculate your fees and report on program performance to state regulators.
Smart Packaging Decisions in the EPR Era
EPR introduces a fresh decision-making framework. Businesses should grasp this to control costs effectively. Instead of choosing packaging based solely on upfront costs and protection, companies now need to factor in long-term EPR fees.
The process starts with understanding your current packaging portfolio. Businesses are carrying out packaging audits. They aim to see which materials will have higher EPR fees. This way, they can also find options that might cut their costs.
Single-material packages often have lower EPR fees than multi-layer alternatives. The term “mono-material” means packaging made from just one material. It doesn’t have layers of different plastics or other components. Companies are learning that mono-materials can effectively protect products. They also help reduce EPR expenses. Testing may be needed to ensure effectiveness.
The fee structure is based on packaging weight. This setup promotes efficiency, helping businesses beyond just EPR compliance. Lighter packaging means lower EPR fees, reduced shipping costs, and improved handling efficiency.
Companies are also realizing they need new types of data. In the past, knowing roughly how much packaging you used was sufficient. Now, you need precise weights for every package type, broken down by the state where it was sold. You’ll report these numbers annually to PROs.
Your Roadmap to EPR Compliance
Businesses that plan for EPR can better handle costs and dodge compliance issues. Here’s how companies are approaching EPR preparation:
Begin with a comprehensive packaging review. Document every package type you use and understand its recyclability profile. This review helps identify which packages will carry higher fees and where you might need alternatives.
Explore your state’s specific EPR laws if they’re on the books. Resources, such as The Product Stewardship Institute (PSI) and the Sustainable Packaging Coalition (SPC), provide helpful information.
Work with knowledgeable packaging partners. Top suppliers offer clear sustainability documents. They also suggest alternatives that work well with EPR fees and still protect products.
Focus on simplification. Many companies find that EPR preparation encourages them to streamline their packaging portfolio. Fewer package types mean easier inventory management and more straightforward EPR reporting.
Upgrade your tracking systems. You’ll need to report packaging usage by state and material type to PROs. Companies with strong data systems find reporting easy. They also gain valuable insights about their operations.
Stay informed about program expansion. As more states adopt EPR programs, companies with experience will be better prepared for compliance in new markets.
Don’t Let EPR Make You FEE-ble
EPR isn’t going anywhere, and wishing it would disappear won’t make your packaging fees vanish (many have tried). Seven states have already introduced these programs, with more joining the party, whether you’re ready or not. The companies that figure out EPR now will spend less time scrambling when it arrives in their state.
Think of EPR preparation as learning to drive. You can take lessons before hitting the road, or you can try to learn during rush hour. Both approaches will eventually get you where you need to go, but one is significantly less stressful and expensive.
The basics are simple: Know which packages cost the most under EPR fees. Work with suppliers who give clear recyclability info. Also, set up systems to track your packaging use by state. Companies that tackle these fundamentals early avoid the panic of last-minute compliance scrambles.
You can now be prepared for whatever challenges EPR legislation throws your way, without hiding like an ostrich with its head in the ground. You’ve got this!
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DISCLAIMER: This article provides general information about EPR legislation and is not legal advice. It does not replace the advice of a qualified attorney. For specific legal guidance regarding your business and EPR compliance, please consult with a lawyer who specializes in environmental or regulatory law.
