UK Packaging Legislation is Changing: What Does It Mean for Your Business in 2026?

UK Packaging Legislation is Changing: What Does It Mean for Your Business in 2026?

The UK packaging industry is undergoing its biggest regulatory shift in decades. From Extended Producer Responsibility (EPR) and Plastic Packaging Tax (PPT) to new recycling requirements, businesses are facing increasing pressure to understand exactly how the packaging they use impacts both compliance and costs.

Whether you're a manufacturer shipping products nationwide, an ecommerce retailer fulfilling online orders, or a warehouse operation managing high-volume distribution, these changes are likely to affect your business in one way or another.

The good news? Businesses that act early can not only stay compliant but also reduce packaging costs, improve efficiency, and strengthen their sustainability credentials.

Extended Producer Responsibility (EPR): The Biggest Change to Packaging Regulations

One of the most significant developments is the introduction of Extended Producer Responsibility (EPR).

Historically, local authorities have shouldered much of the cost of collecting and processing household packaging waste. Under EPR, those costs are increasingly being transferred to the businesses that place packaging onto the UK market.

This means companies that manufacture, import, fill, distribute, or sell packaged goods may now have additional reporting requirements and potentially increased compliance costs.

For many organisations, EPR is creating a strong incentive to review the amount and type of packaging they use. The less unnecessary packaging a business places onto the market, the lower its potential exposure to future fees and obligations.

External links:

GOV.UK – Extended Producer Responsibility for Packaging: https://www.gov.uk/guidance/extended-producer-responsibility-for-packaging

 

Why Packaging Design Matters More Than Ever

Packaging is no longer just about protecting products during transit. The materials you choose and the way your packaging is designed can have a direct impact on your compliance costs and environmental performance.

As legislation continues to evolve, businesses are being encouraged to adopt packaging that is:

  • Easier to recycle
  • Made from recycled materials
  • Lightweight without compromising protection
  • Designed to minimise waste
  • Compatible with UK recycling infrastructure

For warehouse and distribution businesses, this presents an opportunity to optimise packaging specifications while reducing material consumption and transportation costs.

Even small changes, such as reducing excess void fill or switching to more recyclable materials, can make a significant difference across large shipping volumes.

 

The Continued Impact of Plastic Packaging Tax

Plastic Packaging Tax (PPT) remains an important consideration for businesses across the supply chain.

The tax applies to plastic packaging that contains less than 30% recycled content. While not every business is directly responsible for paying the tax, many organisations are seeing the associated costs passed down through their suppliers.

As a result, demand for recycled-content packaging materials continues to grow.

Businesses are increasingly looking at alternatives and reviewing products such as:

  • Stretch wrap and pallet film
  • Mailing bags
  • Protective packaging
  • Transit packaging
  • Ecommerce packaging materials

Choosing packaging with higher recycled content not only helps reduce environmental impact but can also support broader sustainability objectives and procurement requirements.

More information:

GOV.UK – Plastic Packaging Tax Guidance: https://www.gov.uk/government/collections/plastic-packaging-tax

Ecommerce Businesses Face Growing Scrutiny

The rapid growth of ecommerce has brought increased attention to packaging waste.

Consumers are becoming more aware of over-packaging, oversized boxes, and excessive protective materials. At the same time, regulators are encouraging businesses to minimise unnecessary packaging wherever possible.

This is leading many ecommerce businesses to reassess their packaging operations.

Common priorities include:

  • Reducing box sizes
  • Improving packaging efficiency
  • Using recyclable materials
  • Reducing void fill
  • Improving customer perception
  • Lowering shipping costs

For high-volume fulfilment operations, packaging automation is increasingly becoming part of the solution.

Modern packaging machinery can help businesses create right-sized packages, reduce material usage, improve consistency, and increase throughput—all while supporting sustainability goals.

 

 

New Recycling Reforms Will Affect Businesses

Alongside EPR, the Government's Simpler Recycling reforms are set to standardise recycling collections across England.

The aim is to make recycling easier and more consistent for businesses and consumers alike.

While the changes may appear administrative on the surface, they reinforce an important message: businesses should be selecting packaging materials that can be easily recycled through existing collection systems.

Organisations that continue to rely on difficult-to-recycle packaging formats may find themselves under increasing pressure from customers, regulators, and supply chain partners.

External links:

GOV.UK – Simpler Recycling in England: https://www.gov.uk/government/publications/simpler-recycling-in-england-policy-update


What’s happening right now (2026 – the big shift)

 

📦 April 2026 onwards

  • EPR fees become “modulated” (this is a major change)
  • What you pay now depends on how recyclable your packaging is
  • Poor recyclability = higher cost
  • Easy-to-recycle packaging = lower cost

📊 This is the first time packaging design directly impacts cost at scale.

💰 2026 also means:

  • First major full-cost recovery phase begins
  • Packaging waste costs are being fully shifted to producers
  • Invoices and fee structures become more detailed and expensive for many businesses

🔵 What’s coming next (late 2026–2027)

  • Fees continue to increase in sophistication and enforcement
  • More detailed reporting and auditing of packaging data
  • Stronger penalties for incorrect or missing data
  • Ongoing tightening of recyclability requirements

 

What Should Businesses Be Doing Now?

Rather than waiting for future legislation to take effect, now is the ideal time to review your packaging strategy.

Businesses should consider:

  • Conducting a free packaging audit > Orbi Packaging's Free Packaging Audit
  • Reducing unnecessary packaging materials
  • Increasing recycled content where possible
  • Improving recyclability
  • Reviewing packaging data collection processes
  • Exploring packaging automation opportunities
  • Working with knowledgeable packaging suppliers

Taking proactive steps today can help minimise future compliance risks while delivering immediate operational savings.

 

How Orbi Packaging Can Help

At Orbi Packaging, we work with businesses across manufacturing, warehousing, logistics, and ecommerce to develop packaging solutions that meet the demands of a changing regulatory landscape.

From warehouse packaging supplies and protective packaging products to advanced packaging machinery and ecommerce packaging solutions, we help organisations improve efficiency, reduce waste, and prepare for future compliance requirements. 

 

Book your FREE Packaging Audit today here: Orbi Packaging's Free Packaging Audit

 

Related Resources

Packaging legislation will continue to evolve, but businesses that invest in smarter packaging strategies now will be better positioned to reduce costs, improve sustainability, and stay ahead of regulatory change.

If you're reviewing your packaging operation and would like expert advice, contact the Orbi Packaging team to discuss how we can help future-proof your packaging processes.

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