By Nick Bailey, President, SOLUT!

April 3, 2025

As food packaging regulations evolve and global trade dynamics shift, bakery and deli decision-makers—including category managers, culinary innovation teams, packaging buyers, and food processors—are navigating a complex landscape shaped by Extended Producer Responsibility (EPR) laws and tariff pressures.

These regulatory and economic forces are transforming packaging decisions, from material selection to supply chain strategy. With rising costs, shifting regulations, and increasing retailer expectations, understanding these challenges is essential for staying competitive in the bakery and deli market.

This article explores key industry trends, insights into how EPR and tariffs are impacting bakery and deli packaging strategies, and best practices to help businesses stay ahead.

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Understanding EPR and Its Impact on Bakery & Deli Packaging

What is Extended Producer Responsibility (EPR)?

EPR laws shift the cost and responsibility of packaging waste management onto producers, retailers, and brand owners. Instead of municipalities covering the cost of recycling and disposal, companies now pay fees based on their packaging’s recyclability and sustainability.

Key EPR Trends & Their Impact on the Bakery & Deli Industry

• Weight-Based Fees & Material Costs – Many EPR programs determine fees based on the weight of packaging materials. Heavier, non-recyclable materials often come with higher compliance costs, while lighter, more recyclable materials offer cost advantages.
• Comparative Advantage of Materials – Paper-based packaging often has lower EPR fees than plastic due to its recyclability and weight benefits. This shift is driving bakery and deli businesses to explore alternative materials that align with regulatory and cost expectations.
• Retailer Sustainability Mandates – Large retailers and QSR chains are demanding more sustainable packaging solutions. Bakery and deli brands that offer EPR-compliant packaging are prioritized in supplier programs, making compliance essential for maintaining shelf space and business relationships.

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Tariff Pressures and the Packaging Supply Chain

How Tariffs Are Reshaping Bakery & Deli Packaging Costs

Global trade policies and tariffs continue to impact material costs, making some packaging options less viable due to price spikes. Recent trends indicate that molded fiber and aluminum packaging—two popular alternatives—are seeing cost surges due to tariffs.

Industry Insights on Tariffs and Bakery & Deli Packaging

• Material Cost Fluctuations & Price Volatility – Tariffs create unpredictable cost swings, complicating long-term packaging strategies. Bakery and deli companies are exploring alternatives that provide greater cost stability.
• Supply Chain Resilience Matters More Than Ever – Businesses dependent on imported materials are especially vulnerable to tariff-related cost hikes and disruptions. Brands that source materials and manufacture domestically have better cost control and supply stability.
• The Rise of Alternative Packaging Solutions – To counter tariff-driven cost increases, some bakery and deli companies are shifting toward locally sourced, cost-efficient materials that balance sustainability, compliance, and performance.

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Best Practices for Managing EPR and Tariff Challenges

To navigate these challenges effectively, bakery and deli packaging professionals should consider the following strategies:

1. Stay Informed on Regulatory Trends

Regularly track EPR policies in key markets and engage with industry associations to stay ahead of changes.

2. Evaluate Materials with a Long-Term View

Assess packaging materials not just on cost but also on EPR fees, recyclability, weight, and overall performance.

3. Strengthen Your Supply Chain

A domestic supply chain reduces tariff risks and ensures greater stability, making it easier to adapt to market fluctuations.

4. Collaborate with Packaging Experts

Work with suppliers who actively address EPR and tariff challenges to ensure your bakery and deli packaging is compliant, cost-effective, and retailer-approved.

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Case Study: How SOLUT! Addresses These Challenges

While these industry-wide challenges impact many businesses, SOLUT! is taking proactive steps to turn them into opportunities.

• Optimized Paper Packaging – Bakery and deli brands are increasingly seeking packaging that balances cost, compliance, and performance. Lightweight, paper-based solutions reduce EPR fees while maintaining durability and functionality.
• Domestic Manufacturing & Supply Chain Resilience – SOLUT! manufactures 100% of its products in the U.S., with a heavily domestic supply chain. This minimizes exposure to global trade volatility and tariff risks, providing businesses with a stable cost structure.
• Alignment with Retailer Requirements – As retailers demand more sustainable packaging, bakery and deli businesses that offer cost-effective, EPR-compliant solutions have a competitive edge in maintaining and growing business relationships.

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Conclusion

EPR regulations and tariffs are reshaping the bakery and deli packaging industry, compelling businesses to rethink their strategies. While these changes introduce challenges, they also create opportunities for brands that take a proactive approach to compliance, material selection, and supply chain management.

By staying informed, choosing cost-effective and compliant packaging solutions, and prioritizing supply chain resilience, bakery and deli brands can reduce costs, improve sustainability, and stay ahead of industry shifts.

What’s your take on these evolving challenges?

How is your organization adapting to new EPR regulations and tariff pressures? Let’s continue the conversation—comment below or reach out to share your insights!

Curious about how to navigate EPR regulations and tariffs in bakery and deli packaging? Let’s talk. Contact us.