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New California law could add $190 to grocery bills yearly

Manufacturers will be forced to pay for the high costs of recycling plastic packaging as new law comes into effect in California. ©Image Credit: Unsplash / Karsten Winegeart

Californians struggling with the high costs of groceries may be in for a costly surprise. A new plastic packaging law that goes into effect next month could add up to $190 to your yearly grocery bills.

Sweeping new packaging law will shift costs

The countdown is on as California prepares to implement its new packaging law. The legislation will shift the financial burden of recycling plastic packaging away from taxpayers and directly onto the manufacturers themselves.

This change has some experts ringing the alarm about how it will affect prices on shelves.

Businesses could eventually pass on the costs

Businesses may be willing to eat the costs at first, but experts say they could eventually pass those along to consumers. Some warn it could raise Californians' annual grocery bill by up to $190.

The new Plastic Pollution Prevention and Packaging Producer Responsibility Act is meant to encourage manufacturers to use more recyclable materials. The harder the material is to recycle, the more the manufacturer will pay.

Manufacturers will either need to rethink the materials being used or design new packaging. Even if the manufacturer decides to design new packaging, there's still a cost involved that could be passed along to shoppers.

There's also the warning that many manufacturers use the same packaging nationwide, and making California-specific packaging isn't cost-effective.

If the costs of recycling or designing new packaging are too high, some manufacturers may be forced to leave the California market, or in extreme cases, close permanently.

Industry groups warn the impact is being underestimated

Several industry groups warn that the total impact customers will feel in their wallets is likely being underestimated. They also warn that grocery prices could rise quickly without much notice.

Shoppers are staring down a lot of unknowns

There's no getting around the fact that California shoppers are staring down a lot of unknowns, so it may be worth stocking up on some non-perishable items now.

Sources: Fox Business, Daily Signal

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