By Gillian Garside-Wight, director of consulting at packaging sustainability consultancy Aura.
Both in the UK and globally, the new Extended Producer Responsibility (EPR) legislation is one of the biggest transformations to hit the packaging industry in decades. Every UK organisation that supplies or imports packaging (with a few exemptions) will have to report either every six months or annually on the packaging materials they place in the market.
That involves collecting and reporting 100% accurate data on their packaging and paying a fee based on that data – the UK’s EPR scheme is eco-modulated from this year, so more sustainable packaging means lower fees.
2026 in particular is going to be a major year for EPR reporting in the UK. Although larger producers (those with an annual turnover of £2 million or more as well as responsible for supplying or importing more than 50 tonnes of packaging in the UK) had their first reporting deadline in October last year, April 2026 will be the first deadline for smaller producers as well another six-month milestone for the bigger players.
That means fees that businesses will want to mitigate, and gargantuan fines for non-compliance. In some cases, those penalty fines could be up to a staggering 5% of annual turnover, which for a big global brand or retailer could run into millions of pounds.
A global impact
However, EPR is not just a UK issue. All EU member states are required to introduce EPR by August 2026, and some already have established schemes whereas other are starting this process for the first time this year. There are also several states in the US with current EPR in place and several more reporting from this year. This will have a significant impact on any UK brand with operations in those countries.
The biggest impact for businesses selling in the US will likely be for California, which had its SB 54 EPR reporting deadline on November 15, 2025.
The coming 12 months will see the ripples of that deadline continuing to impact brands and retailers globally. It will be devastating for many who sell in the state with the world’s fifth-largest economy, who will find themselves potentially facing significant fees as well as significant fines for non-compliance, of up to $50,000 per day.
In addition, there is a wealth of other new global legislation that will impact packaging beyond EPR. October 2026 is when California’s SB 343 Truth in Labelling legislation comes into force, which means brands and retailers will have to expect litigation from then on if their packaging implies sustainability claims that cannot be substantiated, including any misleading recyclability claims.
While for companies selling in the EU, the EU Packaging and Packaging Waste Regulation (PPWR) is another new overarching law that comes into effect from 12 August 2026. It says that all packaging used in the EU market must be at least 70% recyclable by 2030, reduces unnecessary packaging and sets strict recycled content targets for plastics through to 2040.
Mitigating the effects
It’s also worth noting that EPR doesn’t just affect big supermarket chains and department stores and e-commerce giants. It applies to every organisation that sells packaged goods to consumers, whether that’s a small online business that sells ceramic dolls or a Premier League football club that ships replica shirts and merchandise to fans.
Accurate data also won’t just help them mitigate their fees, but can also help them prove exemptions, if applicable. For example, a brand might hurry to pay the bill sent by the PRO, only to discover later on that much of its business is B2B and therefore exempt from EPR.
As a result, businesses of all shapes and sizes are going to need to ensure they have 100% accurate data on every component that makes up their packaging, or else the financial penalties are going to leave them reeling.
Importantly, this is as much an opportunity for business growth as a legal requirement. That data will also be the only way to ensure that their packaging is meeting consumer demands for greater recyclability and sustainability, with a wealth of research proving that consumers want sustainable packaging and will vote with their wallets towards those brands that provide it.
Businesses will need to navigate this fast-moving landscape and ensure that their plans for greater sustainability continue to progress.
For some businesses, product packaging may have in the past taken a back seat to the product itself when it comes to investing in sustainability. EPR and other legislation, as well as the changing demands of consumers, are ensuring that that is no longer a viable strategy.
