Loblaw Companies Limited is looking to become one of the most influential forces shaping recyclable packaging in North America.
Three years ago, the Canadian grocery and pharmacy giant let their suppliers know that it would begin requiring information about packaging recyclability starting in 2025 as part of its broader goal to ensure all packaging on its shelves is recyclable or reusable by 2026. Since then, the retailer has reinforced that commitment through sustainability goals, packaging redesign initiatives and public discussions about reducing problematic plastics.
In its most recent ESG report, Loblaw reported it had achieved more than 90% compliance with the Consumer Goods Forum’s Golden Design Rules for in-scope control-brand and in-store plastic packaging, putting the company “within reach” of its packaging goal.
“Through collaboration and innovation, we are making measurable progress toward reducing our environmental impact while continuing to deliver value to Canadians,” Per Bank, Loblaw’s president and CEO, said in the report.
The retailer has also publicly acknowledged the operational challenges involved in its goal. For instance, the company noted it was taking “a systematic approach to addressing plastic waste” while working to simplify the plastics used in packaging. The company additionally noted that recycling systems vary significantly across Canada, complicating packaging decisions for suppliers operating nationally.
Since many products sold in Canada share packaging with the US market, Loblaw’s push could have implications far beyond its own stores, potentially forcing suppliers to rethink packaging formats across North America as extended producer responsibility programs continue expanding on both sides of the border.
That possibility is drawing attention from producer responsibility organizations, which increasingly find themselves at the center of packaging design discussions.
Defining “recyclable”
Circular Materials is one of the leading producer responsibility organizations helping manage Canada’s growing EPR framework.
Allen Langdon, CEO of Circular Materials, noted recyclability is no longer being viewed simply as whether a material can theoretically be recycled somewhere.
“From a resident’s perspective, all materials that are obligated under their jurisdiction’s extended producer responsibility regulation are accepted for recycling,” he said. “From a producer’s perspective, we are continuously working to improve recyclability through strategic changes and innovation in packaging design.”
Circular Materials currently evaluates packaging based on three primary factors: whether materials are accepted in collection systems, whether they can be sorted effectively at material recovery facilities and whether end markets exist that can recycle them into new products.
“This approach is evolving as we actively develop national packaging design guidance in collaboration with other producer responsibility organizations in Canada,” Langdon said.
That collaboration includes Éco Entreprises Québec, Recycle BC, SK Recycles and Multi-Material Stewardship Manitoba.
Geneviève Dionne, senior director of ecodesign, ecomodulation and fees setting at Éco Entreprises Québec, the producer responsibility organization that manages Québec’s packaging, printed paper and recycling stewardship system under the province’s extended producer responsibility laws, noted the organization’s approach focuses on actual system performance, not theoretical claims.
“At ÉEQ, we define recyclable packaging as packaging that can realistically be eco-designed, collected, sorted, and recycled within the current curbside recycling system, based on established end markets,” she said. “Our approach therefore considers not only the theoretical recyclability of packaging, but also its actual recyclability within existing infrastructure.”
That distinction could become increasingly important as retailers demand recyclability assurances from suppliers.
For retailers such as Loblaw, which are increasingly seeking recyclability assurances from suppliers, those infrastructure realities may ultimately determine whether packaging qualifies for shelf placement.
“This is why it is important to adopt an approach aligned with the operational realities of curbside recycling,” Dionne said.
Pressure on packaging systems
Retail-driven mandates for recyclable packaging could accelerate investment in recycling infrastructure.
Langdon pointed to new recycling facilities developed under EPR programs in Ontario and Atlantic Canada as examples of how producer funding is already reshaping the system.
“Investing in existing recycling infrastructure and accelerating the shift toward packaging that is more compatible with current collection, sorting and recycling systems is a positive step forward,” he said. “More standardization and alignment across industry will help advance a circular economy where material can be returned to producers for use as recycled content in new packaging and products.”
What’s more, retailer requirements could help push eco-design further upstream.
“Retailer requirements for fully recyclable packaging can have a positive effect, as they encourage companies to rethink packaging at the design stage,” Dionne said.
Still, both PROs warned that recyclability goals must align with operational realities. Flexible packaging and multi-material formats remain among the biggest obstacles facing producers.
“Producers most commonly encounter challenges with flexible and multi-material packaging, particularly when multiple layers are required to meet product performance needs such as food protection, moisture control or oxygen barriers,” Langdon said. “The more complex a package is—for example when it combines multiple materials, adhesives or layers—the more difficult it becomes to effectively sort and recycle within current systems.”
Those packaging formats are common throughout grocery retail, particularly in snack foods, frozen foods and fresh products where barrier protection is critical.
As a result, many brands are now exploring simplified packaging structures, mono-material formats and changes to labels, inks and adhesives that improve sorting performance at MRFs.
Loblaw itself has publicly discussed redesigning trays, overwraps, labels and flexible packaging as part of its sustainability initiative.
Cross-border packaging challenges
The broader significance of Loblaw’s initiative may ultimately depend on what happens outside Canada. Most large consumer packaged goods companies operate integrated North American packaging systems, therefore, producing separate Canadian packaging can increase costs, complicate logistics and disrupt supply chains.
Langdon noted Canadian requirements alone historically have not been enough to force major redesigns.
“US-based brands that share packaging across North American markets typically prioritize alignment with US regulatory and market requirements, given the US market’s larger scale and influence,” he said. “As a result, Canadian-specific requirements alone often have a limited impact on packaging decisions.”
However, that dynamic may be changing as more US states adopt EPR legislation.
“The expansion of extended producer responsibility programs in several US states, most notably California, is beginning to influence shared packaging strategies more broadly,” Langdon said. “As US EPR frameworks take shape, they are more likely to drive packaging design changes that also carry over into the Canadian market.”
That’s resulted in many Canadian organizations trying to align standards with broader North American systems.
“We are also seeing increased collaboration among EPR organizations to develop more harmonized standards and approaches,” Dionne said. “This coordination aims to reduce complexity for companies and promote greater consistency in recyclability criteria across Canada and potentially across North America.”
An effort like this could prove critical if retailers begin enforcing recyclability standards more aggressively.
If Loblaw succeeds in its mission, it may represent an early glimpse of where North American packaging policy is heading.
