California’s SB-54 Extended Producer Responsibility law is becoming one of the most influential packaging regulations in North America, pushing brands, recyclers and packaging producers to prepare for higher recovery targets and stronger end-of-life responsibility.

Because California represents one of the world’s largest economies, its packaging rules are expected to influence packaging design, recycling investment and material sourcing far beyond the state.

Flexible Packaging Faces Tough Recovery Targets

Under SB-54, bags and flexible packaging must reach:

• 30% recovery by 2028
• 65% recovery by 2032

These targets are putting pressure on an industry that still lacks enough collection, sorting and processing capacity for post-consumer polyethylene film.

Industry participants warn that current recycling systems are not yet ready to manage the expected increase in recovered flexible packaging.

Recycling Infrastructure Needs Major Investment

Meeting SB-54 targets will require investment in:

• curbside collection
• material recovery facilities
• film sorting systems
• wash lines
• grinding and pelletizing systems
• advanced recycling technologies

The central question remains who will fund the infrastructure needed to make flexible packaging recycling work at commercial scale.

Chemical Recycling Gains Attention

The pressure to recycle difficult materials is also increasing interest in chemical recycling.

Companies such as Eastman Chemical are developing technologies to process colored plastics and degraded PET that mechanical recycling cannot easily handle.

PepsiCo’s use of chemically recycled PET in Gatorade packaging shows how major brands are beginning to support recycled-content markets despite cost pressure.

NPE2027 Shows Industry Momentum

The wider plastics industry is also preparing for major technology investment. NPE2027 has reportedly allocated around 87% of exhibition space, with more than 2,200 exhibitors expected from over 130 countries.

The strong response reflects rising demand for solutions in:

• recycling technology
• sustainable materials
• circular packaging
• regulatory compliance
• packaging innovation

Industry Outlook

California SB-54 is accelerating the shift from voluntary sustainability goals to legally enforced packaging recovery requirements.

For packaging manufacturers, recyclers and brand owners, the challenge is no longer whether circular packaging systems are needed. The key question is whether the industry can build enough infrastructure quickly enough to meet California’s aggressive targets.

Last Updated on 08/06/2026 by Jota Machinery