As part of its War on Waste campaign, the LGA is calling on food, electrical appliance and cosmetic manufacturers to cut down on excess packaging.
About five million tonnes of annual household waste, or a fifth of the dustbin, is used packaging. Council leaders say reducing this will save their residents money on council tax and help the environment.
The War on Waste campaign is calling on businesses, central government, councils and local people to radically overhaul the way they deal with waste.
LGA chairman Sandy Bruce-Lockhart said: Councils are working hard with people to increase recycling but residents can feel their efforts are being undermined when the amount of packaging in their shopping is constantly increasing.
The feedback we've had from the public since launching the war on waste campaign shows that people are deeply concerned about needlessly over-packaged products. It is up to manufacturers, supermarkets and local councils to work together in responding to public concern about waste and packaging.
According to the LGA the collection and disposal of rubbish is one of the key financial pressures facing local councils in the coming years, with spending on it expected to increase from the current £2.6bn to £4.2bn by 2013 in order to comply with EU legislation.