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The impact of the UK plastic tax on food packaging

The impact of the UK plastic tax on food packaging

Posted on June 24, 2025

Introduced in April 2022, the UK’s Plastic Packaging Tax has significantly influenced food packaging choices across the country. The tax is levied on businesses that produce or import plastic packaging with less than 30% recycled content, with the aim of reducing plastic waste and encouraging the use of sustainable materials. Essentially, the tax levies a charge of £200 per metric tonne on plastic packaging that does not meet the minimum recycled content threshold. This financial penalty incentivises companies to either increase the proportion of recycled plastic they use or switch to alternative materials. In the food industry, where packaging is crucial for safety, freshness and branding, this has prompted a strategic rethink of materials and designs.

Many food businesses have responded by shifting away from conventional virgin plastic packaging towards recycled or hybrid options. Packaging suppliers are developing high-quality recycled plastics that meet food contact safety standards, helping manufacturers comply with the regulations without compromising product integrity. However, recycled plastics can sometimes present challenges in terms of cost, supply and consistency, rendering alternatives more appealing.

Consequently, paper and cardboard food delivery packaging supplies in UK have become increasingly popular. These materials generally fall outside the scope of the plastic tax, and they offer additional benefits, such as being recyclable and biodegradable, as well as having strong consumer appeal as sustainable options. Many food businesses now opt for paper-based trays, boxes, wraps and bags, often combined with a minimal plastic lining to strike a balance between protection and compliance. Of course, there are other options:

  • Lightweighting: thinner films, smaller containers and redesigned packaging can minimise plastic use while maintaining functionality. However, this approach requires careful consideration to avoid compromising food safety and durability.
  • Focus on design and circularity: brands are adopting mono-material packaging that is easier to recycle, as well as investing in refillable or reusable formats to reduce single-use waste. Clearer labelling regarding recyclability and disposal enables consumers to make more informed choices, thereby supporting wider recycling efforts.

While the tax increases the cost of non-compliant packaging, it has accelerated the development of sustainable packaging solutions across the UK food industry. Companies that proactively adopt recycled plastics or alternative materials can reduce their tax liabilities, improve their environmental credentials and meet evolving consumer expectations, thereby turning regulatory pressure into a competitive advantage.

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