Entering a new year with a new administration, there are a number of factors at play that will challenge sustainability goals. There has been much speculation around how the new federal administration and its policies will impact rising costs and sustainability practices. At the state level, legislative changes stand to impact corporate approaches to packaging waste and recycling. Additionally, businesses continue to adapt in the face of an uncertain supply chain. While these challenges will certainly impact the path forward in the packaging industry, they may also present opportunities as the demand for eco-friendly solutions grows.
IT STARTS WITH STATES: HOW NEW BILLS COULD SHAPE SUSTAINABILITY
Recent state-level legislation has focused on sustainability, waste reduction and the environmental impact of packaging materials. This includes the New Jersey Senate, which passed a bill to prohibit oversized packaging from large ecommerce and retail companies, and a number of bills to improve Extended Producer Responsibility (EPR) are in play across the country. These bills could foretell the future direction of the industry as greater importance is placed on cardboard/corrugate recycling and plastic filler reduction.
Other state legislatures include plastic bans and reduction initiatives aimed at lessening single-use plastics, mandatory recycling and composting programs to divert materials from landfills, and packaging material requirements. For example, another New Jersey law requires plastic containers to include a minimum percentage of post-consumer recycled material.
Not only are states mandating sustainability initiatives, there are many local municipalities that have enacted bans on specific types of packaging materials such as Styrofoam, and, in some cases, have imposed fees on single-use materials. Local ordinances could serve to guide broader statewide efforts as well.
As states consider legislation penalizing wasteful packaging, more companies are actively seeking sustainable solutions to navigate these regulatory challenges and avoid legal repercussions.
FEDERAL FACTORS IN THE NEAR FUTURE
According to the Sustainable Packaging Coalition’s inaugural Packaging Innovation Trends Report, fiber-based solutions will increasingly replace plastic fillers as new products become available and companies work to satisfy both consumers and legislators. Recent research cites that fiber-based packaging is expected to grow by 3.8% in the next 10 years. Along those lines, the incoming administration’s appointments could create changes to legislation about plastic fillers, food and drug packaging, and beyond.
The next four years of federal leadership in food and health may also bring significant changes to the regulation of packaging materials in the U.S. The incoming administration has signaled it may seek to address harmful chemicals in food, such as food additives and chemicals in packaging, potentially revisiting long-used substances. Experts predict a more rigorous post-market review program for food packaging materials, including recycled plastics and chemicals like phthalates and vinyl chloride.
In addition to the new federal leadership’s potential impact, there is growing consumer demand for less polluting products (especially in terms of oceanic impact) and for companies to incorporate fiber-based products and greater optimization of paper to improve sustainability and their bottom line.
PARTNERS IN PACKAGING: NAVIGATING THE ROAD AHEAD
Today, packaging companies are paying close attention to these legislative and policy changes as well as shifts in consumer behavior and demand so they can partner well with clients who may find a host of new guidelines and protocols they will have to adhere to in the coming months and years as EPR policies continue to advance across the U.S. A strong packaging partner can help educate ecommerce, manufacturing and other clients about new laws, make recommendations about adherence, and provide packaging and automation options that are best for those businesses.
