The introduction of Extended Producer Responsibility (EPR) for packaging is reshaping the financial landscape for grocery brands, retailers, and suppliers. With producers now responsible for covering the full net cost of managing packaging waste, businesses are facing tough decisions on pricing, supply chain negotiations, and packaging specifications.
From our engagement with leading grocery retailers and suppliers, it’s clear that EPR costs are already shaping commercial decisions. Retailers are seeking greater clarity, suppliers are reviewing cost implications, and some brand owners have already begun adjusting prices in response to these new obligations. Businesses that haven’t yet assessed their EPR costs at the product level will need to do so now to stay ahead of supply chain expectations.
The Growing Impact of EPR on the Grocery Supply Chain
Discussions across the industry reveal that businesses are taking different approaches to absorbing or passing on the cost of EPR:
- Retailers are asking suppliers to lower costs – With compliance costs set to rise, some retailers are putting pressure on their supply chains to offset the impact.
- Brand owners are adjusting prices – Some manufacturers are passing EPR costs onto retailers, influencing pricing discussions.
- There’s an urgent need for SKU-level cost analysis – Many businesses are only just realising how significantly EPR could impact their top-selling products.
What’s clear is that EPR is no longer just an operational issue – it’s a commercial one. If you don’t have a clear understanding of your packaging data and the compliance cost per unit, your business could face unexpected financial pressures in 2025.
Why SKU-Level Data Matters More Than Ever
EPR costs will vary significantly depending on packaging materials, recyclability, and weight. For grocery suppliers, this means every SKU needs to be reviewed to determine:
- The compliance cost per unit – Understanding the financial impact of EPR per product is crucial, especially for high-volume SKUs.
- Potential cost-saving adjustments – Even small changes to packaging materials or weight could help mitigate cost increases.
- The ability to answer retailer demands – Retailers will expect suppliers to provide clear, data-backed insights on packaging compliance costs.
Data-Driven Solutions for EPR Compliance
With EPR costs becoming a key factor in pricing and supply chain negotiations, access to accurate packaging data is essential. At Clarity, we provide businesses with the tools and insights they need to manage EPR effectively, including:
✅ SKU-Level Cost Modelling – Compare 2024 compliance costs with 2025 EPR costs to anticipate financial impact.
✅ Packaging Data Collection & Validation – Ensure your data is accurate and ready for reporting.
✅ EPR Reporting & Compliance Support – Stay ahead of regulatory requirements with tailored reporting tools.
✅ Supply Chain Collaboration Tools – Easily share compliance cost data with retailers and suppliers.
Be Prepared Before You’re Asked
Through our engagement with members and industry-leading grocery stores, we know that EPR is already influencing supplier negotiations and pricing strategies. Businesses that don’t act now risk being caught off guard when retailers and partners start asking for cost breakdowns.
With packaging data now a critical business asset, ensuring its accuracy and accessibility is more important than ever. Clarity’s packaging data management solutions help businesses navigate EPR with confidence, ensuring compliance while controlling costs.
