Food manufacturers face mounting pressures from ingredient costs, labor, transportation, and retailer pricing demands. Now, Extended Producer Responsibility (EPR) laws present another crucial factor impacting profitability.

At the October 2026 Southeastern Food Processors Association (SFPA) meeting at the Sonesta Resort in Hilton Head Island, Dr. Michael Washburn, a nationally recognized EPR expert and founder of Washburn Consulting, outlined an essential priority for food manufacturers: taking financial responsibility for packaging waste.

Seven states have already enacted comprehensive packaging EPR laws, requiring covered producers to fund the collection, recycling, and management of packaging materials. Below is the list of states enforcing EPR legislation:

State	Current Position	Financial Significance
Oregon	Producer fees began 2025	Annual packaging fees being collected
Colorado	Producer fees began 2026	Annual producer fees being collected
California	Regulations effective May 2026	Recurring fees expected in 2027
Maine	Program established	Future fees uncertain
Minnesota	Program requirements underway	Municipal reimbursements begin 2029
Maryland	Producer registration underway	Local recycling costs begin 2028
Washington	Producer registration underway	Funding/compliance to be phased in

Washburn projects that three additional states—Illinois, New York, and New Jersey—will implement similar laws within the next five years.

The Costs Could Be Significant

California’s SB 54 provides a compelling example. The state’s producer responsibility organization, Circular Action Alliance, proposed a $1.105 billion program budget for 2027, funded directly by obligated producers.

And the expenses reach well beyond plastic bottles. Under California’s proposed 2027 fee schedule, glass bottles carry a base fee of approximately 2¢ per pound, corrugated shipping cartons 3¢ per pound and PET plastic bottles approximately 13¢ cents per pound.

Covered plastic packaging also faces additional assessments, including a proposed 26-cent-per-pound pollution mitigation fee.

Individually, these charges appear minor; however, multiplied across millions of units, they become significant. Washburn noted that one chocolate candy bar manufacturer’s single-year cost in California reached $800,000 for wrappers, cartons, and film. Fees also apply to foodservice items ranging from cups and straws to metal cans and plastics. For example, that same chocolate manufacturer incurs $48,000 annually for bulk packaging delivered to bakeries.

Notably, some states exempt manufacturers with sales under $1,000,000. However, for manufacturers selling in California who cannot verify specific unit counts, estimates default to 11% of total nationwide sales based on state population share.

This Is an Opportunity for Enterprise-Wide Alignment

“Your mission is not to generate a report. Your mission is to stand up a compliance program,” Washburn emphasized to SFPA members. That means proactive manufacturers will look beyond simple data collection. Implementing an effective EPR strategy positively engages procurement, finance, product development, packaging design, and pricing strategy.

It also opens doors for strategic decisions: lighter packaging directly reduces fees, optimized materials enhance sustainability while maintaining food safety, and clear private-label agreements define cost ownership early.

For forward-thinking food manufacturers operating on tight margins, addressing these questions now guarantees stronger cost recovery, whether by optimizing regional product pricing or adopting unified nationwide models.

The Time To Calculate Your Exposure Is Now.

Start by auditing packaging materials, component weights, and sales volumes by state. Evaluating prospective fees, refining supplier agreements, and championing innovative packaging will safeguard profits without compromising product quality.

To build a clear understanding of EPR impacts, consult resources like UL Solutions or reach out directly to Dr. Michael Washburn and his team.

At Creative Energy, we believe understanding emerging industry challenges is essential to building stronger food brands.

Because in today’s food industry, optimizing every package component delivers a meaningful competitive edge. To start driving your strategy forward, send us your inquiry.