Get Ahead of Recycling Regulations
As new laws shift recycling fees to producers, an investment in sustainable packaging could pay off.
Sep 10, 2026 | 2 min read
This article is brought to you by Bay Cities. 
Retailers that become early adopters of sustainable packaging stand to gain a competitive advantage, according to Sara Lowe, senior executive administrator at Bay Cities, a packaging and design company.
New Extended Producer Responsibility (EPR) laws regulating packaging have now passed in seven states. These laws shift the costs of recycling from local governments to the companies that make decisions about packaging. The rules themselves can be complex and differ state-to-state, but fees tend to be higher for difficult-to-recycle materials, including certain types of plastic, and lower for materials that are easy to recycle.
Lowe said these laws could matter to convenience retailers that have house brands, private-label products or takeout packaging.
The retailers and suppliers that packaging and retail display manufacturer Bay Cities works with are generally designing around California’s EPR law, according to Lowe. “The reporting structure might be different in Oregon and Colorado, but if we optimize for California, we're optimized everywhere,” she said.
Beyond complying with the law, retailers who make the switch to sustainable packaging could gain a marketing advantage, according to Lowe. “You get to present yourself as an innovative brand,” she said. “You’re transitioning to sustainable packaging on your terms instead of reacting to what the market is forcing you to do.”
Lowe added the consumer focus on environmental sustainability is only accelerating as younger generations “start to grapple with their place as consumers in the marketplace.”
Another potential of being an early adopter: influence. When EPR laws are implemented and more brands make the shift to sustainable packaging, they will look to the businesses that have already found success, said Lowe. In other words, early adopters have a chance to define what works best.
“As more brands come on, they're not going to want to reinvent the wheel,” Lowe said. “Everybody's going to standardize around these formats that get decided on early.”
The big message on packaging for convenience retailers with a house brand? “Start looking at what is easy to swap out,” Lowe said.
This article is the second in a two-part series from Bay Cities. Read part one to learn about how effective merchandising can drive bigger baskets.
Sustainability Merchandising
