Brazilian packaging SMEs must prove 22% recycled content, fines to USD 10m (BRL 50m)

Small and medium Brazilian packaging producers have had to demonstrate a minimum 22% post-consumer recycled plastic content in their products since July 2026, with fines ranging from USD 10,000 (BRL 50,000) to USD 10m (BRL 50m) for non-compliance. The rule requires traceability and documentation on the origin of the recycled material, adding cost on top of resin price rises of up to 80% since February for PP, PE and PVC.

Why this mattersSmaller converters face compliance costs for traceability just as virgin and recycled resin prices surge, squeezing margins across Brazil's packaging supply chain.

• Minimum 22% post-consumer recycled plastic content required in packaging since July 2026.
• Fines run from USD 10,000 (BRL 50,000) to USD 10m (BRL 50m) for non-compliance.
• The rule requires traceability and documentation of the recycled material's origin.
• PP, PE and PVC resin prices have risen by up to 80% since February 2026.

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