Whats driving sustainable Packaging in the United States in 2026

Consumers have been experiencing a wave of product innovation in the dairy and snack segments from consumer packaged goods companies for the last four years. In the U.S., the desire for sustainable packaging is not going away. With regulatory drivers like EPR and connected packaging technology, brands will continue to innovate with r-PP in 2026 and beyond.

Summary:

• The next stage of sustainable packaging is being driven by Extended Producer Responsibility (EPR) legislation and connected packaging technology.
• Modern packaging design will increase recycling rates as brands break away from legacy packaging.
• Industry groups develop new recycling programs to expand to other packaging materials and launch curbside initiatives.
  

Consumers still value sustainability from brands. A recent 2025 Hartman Group Sustainability report reveals that 72% of consumers would like sustainable practices by companies to be more visible, and 68% hold large companies accountable for making the world a more sustainable place — 8 points more than the 2023 report. In addition, consumers are widening the aperture on sustainability through eco-friendly, clean resources such as renewable energy, material reductions and improvement in production efficiencies at food facilities. So the U.S. landscape is ready for more gains in sustainable packaging in 2026, as suppliers continue to move forward with food-safe post-consumer recycled (PCR) materials.

Food industry partnerships have been the essential ingredient in increasing supply in the U.S. In late 2025, Waste Management officially added polypropylene (PP) cups to its universal list of accepted curbside materials across North America. As the dairy segment expands in the U.S., consumers will experience advanced PP with modern “snap-ability”* features and be able to recycle #5 plastics in 2026.  
_{*snapability is the ability of multi-pack containers to be cleanly and easily snapped apart into individual servings}

Recent investments in advanced machine technology, such as optical sorting machines, at Material Recycling Facilities (MRFs), are aiding the advancement of recycling plastic materials. The Recycling Partnership (TRP) has been a leading industry group for years and has directed investments into MRFs and local recycling programs for the last five years. TRP awarded $4.2 mil. in grants to thirteen recycling facilities to improve curbside PP recycling access, targeting nearly 6% of all U.S. households.  

The TRP PP recycling initiative includes a coalition of heavy hitters, such as Keurig Dr. Pepper, Braskem, NextGen Consortium and the Walmart Foundation. The alliance recognized the lack of recycling at MRFs in the U.S., as just 60% of Americans have access to PP recycling. TRP estimates that an estimated 13 million lbs. will now be collected annually and made into new products, such as consumer packaging and automotive parts, rather than being sent to landfills.

Modern packaging solutions are increasing in the U.S. due to emerging Extended Producer Responsibility (EPR) laws across several states. The EPR rules vary across these states, but the mandate is to provide a direct incentive for companies to design recyclable packaging and support recycling systems. The Circular Action Alliance is now working overtime to assist companies in registering for upcoming and current state EPR programs. Oregon implemented its fees and program on July 1, 2025, and below are other upcoming state implementation dates:

• In Colorado, the complete EPR program started on Jan. 1, 2026. 
• California’s massive EPR program starts on Jan. 1, 2027, and the full 2023 reporting deadline was Nov. 15, 2025.
• Minnesota’s deadline for producers to register was July 1, 2025, and the next compliance deadline is Jan. 1, 2029.
• Washington passed its EPR law in May 2025, and full implementation starts on Jan. 1, 2030.
• Maine was the first to pass its law, and the full program is slated to be operational by 2027.

Connected packaging is a massive opportunity for brands to tell their stories, including sustainable packaging, clean-label ingredients, and sourcing. “We see that when it comes to clean labels, nothing is off limits,” says Stephanie Mattucci, director of food science at MINTEL, in a 2025 webinar on clean labels. “In addition to ingredients, clean label concerns have expanded to processing, packaging, ethical and environmental concerns. Those eco- and ethical-related claims have shown growth over the past decade.”

Connected packaging, or on-pack technology, is enabled by QR codes or near-field communication tags that allow consumers to learn more via their devices. In the U.S., recycling leaders like The Recycling Partnership (TRP) and Consumer Brands Association (CBA) partnered in late 2024 to increase recycling rates via QR code technology. 

Consumers scan the SmartLabel QR code on the packaging, click a button, and instantly see whether the packaging is recyclable locally. For recycling, the SmartLabel QR code leverages the TRP and Can I Recycle This (CIRT) databases, which now encompass over 9,000 recycling districts nationwide. Currently, SmartLabel has over 80 participating parent companies representing more than 100,000 products and 1,000 brands. Brands have also started using the platform to provide nutritional claims, ingredient sourcing, sustainability attributes, certifications and even safety recall data. 

Connected packaging adoption by brands is growing. Brands recognize that consumer engagement on clean label ingredients, renewable sourcing and sustainable packaging is substantial and increasing. While there are challenges to sustainable packaging in the U.S., regulatory and new-technology drivers should build on unwavering consumer interest.