The Growing Impact of PCR Laws on Plastic Packaging and Products
Post-consumer recycled (PCR) content laws are gaining popularity at the state-level to reduce plastic’s environmental impact. PCR laws require a variety of plastic products, such as beverage containers, trash bags and personal care product packaging, to contain a minimum percentage of PCR plastic.
By increasing demand for recycled plastic, PCR laws aim to create a strong and stable market for recycled content materials. PCR laws usually include a provision to set aside funds and resources to expand community recycling programs and improve recycling infrastructure. These provisions ensure adequate supply will be available to meet increasing PCR demand.
Elements of PCR Laws
PCR laws have been passed in several U.S. states including California, Connecticut, Maine and New Jersey. While the future of plastics legislation is still murky at the federal level, PCR laws are being embraced by states and are anticipated to continue at previously announced trajectories throughout 2025. The specifics of active PCR laws are determined on a state-by-state basis, but the existing laws have several common elements:
- Minimum PCR content percentage requirement for covered products
- Annual registration and reporting
- Penalties for noncompliance
- Flexibility to adjust targets based on market conditions
Minimum PCR Content
Each active PCR law requires all specified products distributed, offered for sale or sold within the state to contain a minimum percentage of PCR content. For this reason, PCR laws impact any company that sells its products within a given state — not just companies based in the state where the law is active.
Packaging is a common area of focus for PCR laws, especially plastic beverage containers, personal care products and household cleaning products. Plastic grocery bags and trash bags are also included by multiple states. These items, known as covered products, must contain a specific percentage of PCR plastic by weight.
Many states will increase the PCR content requirement as time passes. For example, beginning in 2022, California Assembly Bill 793 required plastic beverage containers contain at least 15% PCR content. In 2025, the PCR content requirement has increased to 25%, with a further planned increase to 50% in 2030.
Annual Registration and Reporting
Brand owners, manufacturers or distributors who sell covered products in states with PCR laws are required to register products with each state’s overseeing organization. In Connecticut, that organization is the Department of Energy & Environmental Protection (DEEP).
Producers, including brands and manufacturers, that offer for sale, sell or distribute plastic beverage containers in or into Connecticut in 2025 will be required to register with DEEP by April 1, 2026. Registration will continue on an annual basis in Connecticut until 2031, after which registration will be renewed every five years.
PCR laws require registered companies to share an annual report including the weight in pounds of virgin plastic and PCR plastic in any given product. This report helps to calculate the percentage of PCR plastic and certify it meets terms set out in the PCR law.
Penalties for Noncompliance
Producers who do not follow PCR laws may be subject to penalties for noncompliance. In California, producers are charged $0.20 for each pound of PCR plastic short of the target requirement. These fees are then reinvested in the state’s recycling infrastructure, including recycling collection and processing systems.
Target Flexibility
Due to current market conditions and inconsistent quality of PCR material, many PCR laws include a measure of flexibility for states to adjust PCR content requirements in the future. For example, California can review current targets this year based on market conditions such as the supply and demand for PCR plastics, recycling collection rates, and material availability. This flexibility ensures producers will not be held to unattainable standards while the PCR market stabilizes.
Preparing for PCR Laws
PCR laws will continue to drive demand for PCR resin as more states pass PCR content requirements and required percentages increase over time. Beverage containers are the most likely products to be regulated at the moment, but that won’t be the case for long. In Washington, PCR content requirements for household cleaning product packaging and personal care product packaging went into effect on January 1, 2025.
As more products are added to PCR laws, producers can prepare to comply by testing sustainable plastic products containing PCR content and beginning to track and anticipate shifts in raw material sourcing. Visit M. Holland’s Sustainability market page for more information.