EPR reshapes Latin American packaging from performance to circularity

EPRs in Latin America are shifting packaging design focus beyond branding and performance, toward including design that centers on end-of-life circularity. 

Across Latin America, many countries have adopted national EPR laws that assign producers responsibility for packaging waste. The legislation is forcing brands to take responsibility for all packaging materials placed on the market — and any subsequent environmental impact it may have. 

Packaging Insights speaks to Martha Ricardi, director of Latin American strategy at the non-profit Association of Plastic Recyclers, and Rodrigo Leiva Neumann, director of the environmental consultancy Valoryza, to explore how packaging design and supply chains are evolving in Latin America to meet EPR requirements. 

“Companies are beginning to recognize that poor design, beyond its environmental impact, can trigger higher costs and risks under evolving regional laws,” says Ricardi. 

However, she highlights a challenge in transitioning from a design based primarily on marketing and functionality toward a design that also factors in recyclability and recycled content. 

“Some producers are already reviewing the use of hard-to-recycle materials, such as certain multilayer films, and evaluating monomaterial structures and materials with more consolidated recycling streams, like clear PET and high-density PE, whenever technically and commercially viable.” 

Leiva Neumann explains that the situation in Latin America is much like in Europe, with producers designing packaging to minimize recyclability fees. 

“In Chile, producers are preparing to comply with circular economy criteria included in EPR regulations, with fees modulated according to recyclability and recycled content.” 

“Brazil, as part of its reverse logistics law, has also established obligations to incorporate recycled material into packaging, and Colombia and Chile have enacted laws complementary to EPR that establish obligations for the use of recycled content in packaging.” 

However, despite growing EPR frameworks and waste management regulations, researchers from the Federal Rural University of the Amazon in Brazil, warned that recycling and waste systems in the country are unlikely to reach regulatory targets. 

Investing in recycling 

Leiva Neumann notes that countries leading the implementation of EPR in Latin America, such as Chile and Colombia, are also investing in recycling and waste management systems. 

“The waste management industry has been stimulated. Investment in infrastructure for the collection, sorting, and recycling of packaging materials makes these countries attractive to international investors and waste management companies.” 

Yet, while Leiva Neumann suggests that Latin America’s waste management investment signifies a shift in focus for the continent, research into the regions management of packaging and plastic pollution highlights weak and fragmented policy. 

One study, published in Sustainability, found gaps in the implementation of recycling policies and regulations, particularly in Brazil. Another, published in Environmental Management, found that plastic production, consumption, and waste are increasing in the region, but waste management and circular investments remain “insufficient.” 

EPR impact on supply chains 

Ricardi and Leiva Neumann highlight that changes to packaging design in Latin America are also affecting choices along the supply chain. 

“Supply chains are transforming,” reflects Ricardi. “EPR is forcing companies to transition from linear supply chains to regional closed-loop circular systems.” 

She explains that EPR is forcing producers to also secure their own feedstock, which has led to “strategic alliances” and the development of “robust reverse logistics networks” to guarantee a stable supply of high-quality post-consumer recycled resin. 

This year alone, packaging supply chains have been disrupted by the US-Iran conflict and Strait of Hormuz blockade, as well as global tariffs. 

Standardizing sustainability 

Increasingly, companies in Latin America are realizing that standardized, science-based design is a way to future-proof their business against regulatory evolution and market volatility, according to Ricardi. 

Earlier this year, Innova Market Insights designated “substantiated sustainability" as its Top Packaging Trend for 2026, as regulators and consumers increasingly expect packaging sustainability claims to be scientifically validated. 

“Investment decisions have shifted from short-term mitigation to long-term asset creation. Leading consumer goods companies are investing in redesign, recyclability testing, recovery infrastructure, sorting technologies, and recycled material supply agreements,” says Ricardi. 

“We are witnessing a profound paradigm shift: EPR is no longer just a regulatory compliance cost; it has become a core driver of corporate strategy, supply chain resilience, and regulatory trends across Latin America.”