If you make packaging decisions for products sold in California, the past two months have been confusing. A federal court paused enforcement of California's SB 343 recycling law in July, yet the October 4 compliance deadline remained unchanged. This leaves many packaging teams caught in between.
Here is what changed, what did not, and why the material decisions in front of you look the same either way.
On July 14, 2026, a federal judge in the Southern District of California granted a preliminary injunction in California League of Food Producers et al. v. Bonta. The ruling temporarily blocks the California Attorney General and parties acting in concert with him from enforcing SB 343 – California's “Truth in Recycling” law – while the constitutional challenge proceeds.
The court found four provisions of SB 343 likely unconstitutionally vague:
An appeal is widely expected, but here's what matters for packaging teams now:
A material qualifies as recyclable under SB 343 if it is collected through programs serving at least 60% of California's population and sorted at facilities serving at least 60% of the state's recycling programs. The court found this standard sufficiently clear. Enforcement of that core requirement remains blocked during the injunction, but the threshold itself is likely to survive appeal.
Local jurisdictions, competitors, and consumer advocacy groups can still challenge recyclability claims under California consumer protection statutes. The preliminary injunction does not eliminate liability exposure – it only pauses the AG's enforcement authority.
Set the SB 343 litigation aside and the material question facing packaging teams looks much the same.
The 60/60 threshold naturally favors materials with established collection access and clean sorting streams. Those materials include:
It disadvantages multi-material laminates, complex composites, and most plastic films, reflecting what current infrastructure can actually process.
But here's the bigger picture: the broader market is already moving in this direction without SB 343.
The result: Companies redesigning toward mono-material fiber or paperboard because of SB 343 are positioned well under EPR fee schedules regardless of how the appeal resolves.
CalRecycle periodically updates the material tables that determine which packaging clears the 60/60 threshold. The most recent update was June 2026. The agency is required to revisit its findings in 2027 and every five years after that.
This means:
For packaging teams, that turns SB 343 from a one-time legal question into a recurring question: Which materials are gaining collection access? Which formats are being sorted reliably? Where is recycling capacity being added or lost?
The Freedonia Group research tracks US packaging demand by material and format across food and beverage, foodservice, e-commerce, and industrial applications. Our coverage includes:
These data answer the question packaging teams are really asking: not only what the law says today, but what the market is doing in response – and where the opportunities and risks are shifting.
The July injunction delayed one avenue of enforcement. It did not alter the material forces reshaping packaging.
The materials that clear California's 60/60 recyclability test are largely the same materials gaining ground under state foam bans, PFAS restrictions, and EPR fee structures. Whether SB 343 survives appeal or not, the market is already making that shift.
If your team is making packaging material decisions against a moving regulatory target, one report won't keep up. Requirements are changing across multiple states. Fee schedules are still being set. California's recyclability criteria face revision in 2027 and beyond.
Freedonia Knowledge Center Membership provides continuous access to packaging research, demand data by material and format, and direct access to the analysts tracking these shifts. We can walk you through the coverage relevant to your categories and give you a direct answer on what membership costs.
Freedonia Group continues to track these developments across the packaging materials, regulations, and market trends landscape through our Packaging Research & Analysis. Request access today..
About the Author
Joseph El-Hage brings a strong analytical mindset and a well-rounded academic background to the Freedonia team. Based in Cleveland, Ohio, he holds a Bachelor of Science in Statistics and a Bachelor of Science in Economics from the University of Chicago, as well as a Master of Science in Information Systems from Cleveland State University. He is also a member of Beta Gamma Sigma, recognizing his academic excellence. As of 2026, he has five years of professional experience, all of which have been spent contributing to Freedonia’s success. During that time, he has developed a deep understanding of the industry and consistently delivers thoughtful, data-driven insights. Outside of work, Joseph enjoys hiking, watching films, and playing trading card games. Known for his unique ability to clap with one hand, he brings both personality and a sense of humor to the team. As he puts it, “At Freedonia, the work is rewarding and the people fun.”
California League of Food Producers et al. v. Bonta (3:26-cv-01675-WQH-JAC, S.D. Cal.)
Faegre Drinker Biddle & Reath. SB 343 Enjoined: Court Temporarily Bars California from Enforcing Truth in Recycling Act Against Any Business. July 2026.
Saul Ewing Arnstein & Lehr. SB 343 Enjoined: Federal Court Blocks Enforcement of California's Truth-in-Recycling Law. July 2026.
Hunton Andrews Kurth. Federal Court Enjoins Enforcement of California's Truth in Recycling Law: What This Means for Businesses. 2026.
Steptoe. California Court Blocks Enforcement of SB 343: Truth in Recycling Law. July 2026.
Brightest. Extended Producer Responsibility (EPR): Requirements, State Laws, and Compliance Guide. 2026.
The Recycling Partnership. Increasing Recycling Rates with EPR Policy. 2023.
New York State DEC. Expanded Polystyrene Foam Containers and Polystyrene Loose Fill Packaging Ban. Effective January 1, 2022 (expanded through 2026).
Food Packaging Forum. More US States Now Ban PFAS in Food Packaging. 2021–2026.