Top Regulatory Concerns Members indicated a wide range of concerns when asked which regulatory areas they anticipate will have the most impact on their businesses in the next four years. Although product safety regulations were a focus in the earlier PPAI 100 survey results, they took a backseat to tariffs, environmental standards and data privacy in the broader member survey conducted later in the year (see Figure 2): • Tariffs and trade restrictions emerged as a top priority. Presidentelect Donald Trump has pledged to make significant tariffs – particularly on goods imported from China – a cornerstone of his economic agenda, and 38.3% of distributors and a significant 80% of suppliers view these as a potential disruption to their business models. “The increased cost, supply chain delays and budget adjustments due to future trade tariffs and import restrictions will be the key adverse impacts on our business in general for the next four years,” says Sanjay Kotia, MAS, manager of product compliance and quality assurance for SnugZ USA, the No. 7 supplier in the PPAI 100. “We will also be mindful about strategic adaptations for reshoring or nearshoring if tariffs will be imposed on China to mitigate broader import risks.” • Environmental regulations were also high on the list, with 24.5% of distributors and 53.3% of suppliers anticipating challenges tied to sustainability requirements, bans on specific chemicals (like PFAS) and extended producer responsibility for packaging. “Environmental regulations often require businesses to adapt their production processes, source sustainable materials or eliminate singleuse plastics, which may lead to increased costs and operational changes,” says Heidi Koch, senior product manager for Cap America, the No. 18 supplier in the PPAI 100. “However, these measures can also present opportunities to align with consumer demand for eco-friendly products and achieve long-term benefits.” • Data Privacy Regulations such as the California Consumer Privacy Act and Europe’s General Data Protection Regulation concern 28.7% of distributors and 10% of suppliers – a clear indication of the growing “Environmental regulations often require businesses to adapt their production processes, source sustainable materials or eliminate single-use plastics, which may lead to increased costs and operational changes,” Heidi Koch, Senior product manager for Cap America FIGURE 2: Which of the following regulatory changes or legislative actions do you anticipate having the most significant impacts on your business in the next four years? Distributors Suppliers Environmental regulations 24.5% 53.3% Trade tariffs and restrictions 38.3% 80.0% Data privacy regulations 28.7% 10.0% Labor and ethical sourcing regulations 36.2% 26.7% Product safety and compliance standards 25.5% 43.3% Packaging and labeling requirements 22.9% 33.3% Intellectual property and trademark regulations 19.1% 3.3% Anti-counterfeiting and brand protection measures 20.7% 6.7% Health and safety regulations 17.0% 3.3% Import/export compliance 17.0% 43.3% Consumer protection and product recall regulations 18.6% 6.7% Advertising and marketing compliance 10.1% 13.3% Other 0.5% 13.3% Watch Out Legislation and Compliance | Must Read PPAI • JANUARY 2025 • 31
RkJQdWJsaXNoZXIy NzU4OQ==