The plastics industry is undergoing an unprecedented regulatory transformation, shifting from incremental, local bans to comprehensive, global legislation focused on Extended Producer Responsibility (EPR), recycled content mandates, and the systemic reduction of virgin material use. For formulators and processors, the 2025 regulatory landscape confirms that achieving circularity is no longer a goal, but a complex, legally binding requirement.
Here is a recap of the most critical regulatory shifts impacting the plastics industry in 2025 and the major trends shaping 2026 and beyond.
I. Major Regulatory Changes in 2025: The Rise of EPR and Content Mandates
The core theme of 2025 was the operationalization of laws that shift the financial and logistical burden of plastic waste management from municipalities to producers.
A. Extended Producer Responsibility (EPR) Expands in the US
The US experienced rapid adoption and implementation of state-level EPR laws, marking a definitive trend for packaging.
- New EPR States: Maryland passed its packaging EPR law in May 2025, becoming the sixth US state to enact such a program. This requires producers to share responsibility for their packaging’s lifecycle.
- Implementation Milestones: States with existing EPR laws moved into implementation phases:
- Colorado’s Program Plan was due for approval by December 2025, with the program set to start on January 1, 2026.
- Washington State’s Recycling Reform Act moved toward implementation, with its Advisory Council to be named in January 2026 and producer registration set for later that year.
- New York Proposal: New York introduced the Packaging Reduction and Recycling Infrastructure Act, requiring companies with net income over $1 million to register with a Producer Responsibility Organization (PRO) to reduce packaging and financially support recycling infrastructure.
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B. Recycled Content Mandates Kick In
Mandatory minimum percentages of Post-Consumer Recycled (PCR) content began to escalate in several jurisdictions, directly driving demand for recycled resin.
- Washington State Targets: Specific phased increases took effect in Washington:
- Plastic Trash Bags minimum PCR content moved to 15%.
- Household Cleaning and Personal Care Products packaging started at a 15% minimum.
- Driving Demand: These mandates, alongside voluntary targets like the U.S. Plastics Pact’s goal of 30% average recycled or bio-based content by 2025, intensified market competition for high-quality recycled material.
C. Microplastics and Single-Use Bans
Legislative action targeting plastic pollution at the source continued across the US and globally.
- Polystyrene Foam Bans: Bans on expanded polystyrene (EPS) food serviceware went into effect in states like Illinois.
- Microplastics Research: Federal efforts in the US, such as the proposed bill (H.R. 4903), were introduced to expand and coordinate programs to study the impacts of microplastics exposure on human health, signaling a potential basis for future regulation.
II. What to Expect: 2026 and Beyond
The next two years will be defined by the finalization of monumental EU legislation and the global shift toward a truly circular economy model.
A. EU Green Deal: The Core Regulatory Driver (2026)
The European Union’s Green Deal will transition from policy proposals to legally binding market standards.
- Packaging and Packaging Waste Regulation (PPWR): The PPWR entered into force in February 2025, with its general application date set for August 12, 2026. This regulation will impose strict, harmonized requirements for packaging across the EU, including new targets for recyclability, reuse, recycled content, and source reduction.
- Circular Economy Act (Expected 2026): This Act aims to establish a Single Market for secondary raw materials, helping to double the EU’s circularity rate to 24% by 2030. It will focus on increasing the supply and demand for high-quality recycled materials.
- REACH Revision: A revision of the REACH regulation, expected in 2026, will introduce stricter rules for hazardous chemicals, particularly those that are endocrine-disrupting or persistent, which will impact plastic additives and compounds.
B. Global Industry Shift to Circularity
Regulatory pressure and brand commitments will continue to force systemic changes across the plastics value chain.
- Overcapacity and Portfolio Rebalancing: Global overcapacity in basic petrochemicals (like ethylene and polyethylene) is expected to grow with new capacity coming online in 2026, particularly in regions with low-cost feedstocks. This will intensify the focus on specialty chemicals and higher-margin, tailored plastic products.
- Trade Dynamics: Trade tariffs and geopolitical tensions will continue to reshape supply chains, with trade agreements like the USMCA (United States–Mexico–Canada Agreement) being critical for recycled plastics trade flows between the US and Canada.
- Focus on Reuse and Refill: Upcoming US federal efforts, such as the REUSE Act, will push the US EPA to gather data on reuse and refill systems, signaling a future regulatory direction that prioritizes reduction over recycling for certain packaging categories.
III. Actionable Insights
- Prioritize Recycled Material Sourcing: Focus your procurement and formulation efforts on high-quality Post-Consumer Recycled (PCR) resins to meet rising mandates in Washington, California, and New Jersey. Utilize Prospector to search for resins with certified PCR content and check for exclusions for certain federally regulated products.
- Integrate Design-for-Recyclability: With the PPWR and new EPR laws, products must be designed for economic recyclability. Review your material selection for compatibility with existing recycling infrastructure, focusing on single-polymer designs and simplified colorants/additives.
- Map Your EPR Obligations: If you sell packaged goods in the US, immediately assess your compliance requirements in all states that have enacted EPR (currently California, Colorado, Maine, Oregon, Washington, and Maryland) to prepare for registration deadlines and fees.
Sources
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The current state of Canada-U.S. plastics trade – Recycling Product News
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Microplastics in 2025: Regulatory Trends and Updates – The Acta Group
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How will the EU build a truly circular economy? | Article – Packaging Europe
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The EU’s plastic waste challenge – Sustainability – Topics – PwC
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What’s New in Packaging Policy? Packaging Policy Roundup – Sustainable Packaging Coalition
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Single-use plastic ban USA 2026: State laws, status, impact – UKHI
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2025 regulatory and waste management updates from US States | Food Packaging Forum
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Recycled content minimums – Washington State Department of Ecology – | WA.gov
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Policy Now | December 2025 – Year-end nears, policy talks continue – Resource Recycling
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The evolving landscape of plastics recycling policy in the U.S. – ADI Analytics
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