Packaging Regulations in the U.S.—How California’s 2032 Compostable Mandates Affect the Supply Chain

In the U.S., California has long been a bellwether for environmental policy—and its latest move is poised to transform the packaging industry nationwide. With new legislation requiring all single-use packaging to be compostable or recyclable by 2032, businesses across the foodservice supply chain are reevaluating their materials, sourcing, and sustainability commitments.

What Is California’s 2032 Compostable Packaging Mandate?

Signed into law under SB 54, this mandate is part of California’s broader push to curb plastic waste and reduce landfill overflow. By 2032:

• All single-use packaging sold or distributed in California must be compostable or recyclable.

• A minimum of 25% plastic waste reduction must be achieved by 2032, with incremental goals beginning as early as 2025.

• Producers are required to fund $5 billion over 10 years toward plastic pollution cleanup and mitigation.

Though California-specific, this legislation has national ripple effects—especially for manufacturers and distributors operating across state lines.

Implications for the U.S. Food Packaging Industry

1. Shifts in Material Demand

   • Packaging made from bagasse, PLA-lined paper, moulded fiber, and other certified compostable materials is seeing a spike in demand.

   • Polystyrene, PVC, and mixed-plastic packaging options are being phased out due to non-compliance risks.

2. Supply Chain Adjustments

   • Businesses are exploring domestic production partnerships to avoid delays from overseas suppliers who lack compliant materials.

   • Lead times, certifications (such as ASTM D6400 and BPI), and regional sourcing are now critical decision factors.

3. Increased Focus on Labelling & Transparency

   • Clear end-of-life labeling (e.g., "commercially compostable") is necessary to avoid greenwashing.

   • Brands are leveraging custom branded compostable packaging to showcase sustainability leadership.

Why Distributors Should Act Now

Even if you’re not based in California, if your products are sold there—or might be in the future—you’ll be expected to comply. Major national retailers and food delivery apps are already tightening packaging requirements in anticipation of the mandate.

By adopting compostable packaging solutions now, businesses can:

• Stay ahead of compliance deadlines

• Increase appeal with eco-conscious consumers

• Strengthen relationships with California-based partners

How This-Element.com Is Supporting U.S. Businesses

At This Element, we help foodservice establishments and suppliers navigate the evolving regulatory landscape with:

• Certified compostable takeaway packaging made from renewable resources

• Custom branding options using water-based inks and compostable substrates

• Bulk ordering discounts for businesses of all sizes

From moulded fiber bowls to PLA-lined soup containers, our catalogue is designed to support compliance and sustainability, without compromising on performance or design.