New Recycling Laws Are Rewriting the Paper Market

New state EPR laws move recycling costs to producers, pushing paper and packaging companies to redesign products and invest in recovery systems

18 May 2025

New recycling laws in Maryland and Washington are pushing the US paper and pulp industry to reconsider how packaging is designed, priced and recovered, shifting the financial burden of recycling from municipalities to producers.

The states have adopted extended producer responsibility (EPR) rules that require companies placing packaging on the market to pay for its collection, sorting and processing after use. The approach, already used in parts of Europe and Canada, is now gaining traction in several US states.

Industry analysts estimate the new frameworks could impose more than $1bn in annual costs on affected producers once programmes are fully implemented.

Large packaging groups are adjusting their strategies in response.

International Paper said it is working with policymakers and industry groups as the programmes take shape, while also expanding recycling services for customers seeking to meet emerging requirements. The company views the regulatory shift as a longer-term strategic opening rather than only a compliance issue.

“We see this as a long-term opportunity to lead,” a company spokesperson said.

Smurfit WestRock is focusing on redesigning packaging in partnership with consumer goods companies so materials can be recycled more easily from the outset. The company is also investing in tracking and labelling technologies intended to give regulators and customers clearer information about where packaging materials end up.

Despite these efforts, the regulatory environment remains uneven. EPR systems are being introduced at the state level, and rules differ between jurisdictions. For companies operating nationwide, this creates a patchwork of standards that may complicate compliance and increase administrative costs.

Smaller producers may face particular pressure, as they have fewer resources to redesign packaging or invest in new recovery systems.

Still, policymakers in other states are considering similar legislation, suggesting the model could spread. For packaging manufacturers, the shift signals a gradual move toward producer-funded recycling systems that may reshape the economics of the industry in the coming years.