89% of obligated packaging producers continue to use non-recyclable, hard-to-recycle, or mixed-rating packaging under extended producer responsibility laws, according to data from the Department for Environment, Food & Rural Affairs (Defra).
The figures stem from a Freedom of Information request by BagKraft and were released under Environmental Information Regulations. They suggest that among the 11,701 obligated packaging producers in the UK, 89% continue to supply less sustainable packaging.
Under the UK’s extended producer responsibility laws (pEPR), eco-modulation will apply from the 2026-2027 financial year. Every unit of packaging will be assigned a colour – red, amber, or green – based on its recyclability under existing waste management processes.
If a pack falls under the green category, it is considered easier to recycle and will incur lower fees. The red category is reserved for hard-to-recycle formats and will incur higher fees. An amber rating means that the packaging will not be subject to modulated fees.
According to Defra, 75% of producers use a mixture of red, amber, and green-rated packaging; this is linked to a wider difficulty for businesses to fully transition away from ‘problematic’ materials, with only 10% thought to supply strictly green-rated packaging across their operations.
Apparently, 14% of producers exclusively use packaging that falls into the red category, leaving 1 in 7 businesses entirely reliant on hard-to-recycle materials. Another 1% of producers are said to supply only amber-rated packaging and create further recycling challenges.
BagKraft highlights the ‘significant gap’ between corporate sustainability goals and actual supply chain performance in the UK – warning that businesses relying on red or amber-rated packaging will face ‘significant’ operational costs and reputational risks.
Switching to easily recyclable and high-performance materials could help brands and retailers protect themselves from penalties and meet consumer demand for sustainability-minded packaging, BagKraft adds.
“This data from Defra is a stark reminder that while the conversation around sustainability is everywhere, the physical transition is lagging,” said Jon Marling, managing director of BagKraft.
“Seeing that only 10% of producers are operating entirely in the ‘green’ zone is a wake-up call. Moving away from ‘red’ and mixed-material packaging isn’t just an environmental obligation anymore—with pEPR fees escalating, it is a financial necessity.”
Packaging Europe previously took a closer look at the current and future expectations of pEPR – breaking down the base fees, expected fee modulation, and any exemptions from the scheme’s expectations.
In other news, the Federal Council of the Swiss Confederation has just published a new ordinance for packaging. Its extended producer responsibility laws will apply from 1 January 2030, using eco-modulated fees to incentivize business to introduce recycled content into their packaging materials.
A study commissioned by EUROPEN and conducted by CIRCPACK by Veolia has also urged the European Commission to address ‘wide’ performance gaps between national packaging EPR systems across the EU via the upcoming Circular Economy Act.
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