UK Plastic Packaging Tax Update 2025: Impact on Packaging Strategies

With global plastic waste production reaching a staggering 400 million tonnes annually and recycling rates stagnating below 10%, the urgency for regulatory intervention has never been clearer. The scale of this challenge becomes even more pronounced when examining per capita consumption: the United States leads at 130kg per person annually, followed closely by the UK at 98.7kg, and South Korea at 88.1kg. These statistics underscore why the UK's position as the world's second-largest per capita plastic waste generator makes its Plastic Packaging Tax (PPT) particularly significant.

The UK's Plastic Packaging Tax has reached a critical juncture in 2025, fundamentally reshaping how businesses approach packaging decisions and supply chain strategies. For international distributors and packaging professionals, understanding these regulatory changes isn't just about compliance—it's about navigating a market where environmental responsibility directly impacts profitability and market access. As global sustainability regulations tighten, the UK's approach serves as a blueprint that other markets are closely watching, making the 2025 updates essential knowledge for anyone involved in the international packaging supply chain.

Table of Content

• What's New in 2025?
• Who Is Affected?
• Why This Matters for Packaging-related Businesses
• Strategic Packaging Solutions

What's New in 2025

Since its introduction on April 1, 2022, the UK Plastic Packaging Tax has been designed to encourage businesses to increase their use of recycled plastic content, promoting circular economy principles and sustainable development. The original framework established the following key parameters:

• Scope: Applies to plastic packaging manufactured or imported into the UK
• Tax Target: Packaging components containing less than 30% recycled content
• Threshold: Businesses handling over 10 tonnes of plastic packaging annually
• Reporting: Quarterly returns to HMRC detailing total weight of manufactured or imported plastic packaging
• Tax Rate: Originally £200 per tonne (2022), increased to £217.85 per tonne from April 2024

The 2025 amendments to the UK Plastic Packaging Tax introduce two key changes that directly impact packaging suppliers and distributors:
Tax Rate Increase: The most significant change is the rate adjustment from £217.85 per tonne to £223.69 per tonne, effective from 1 April 2025. This increase follows the Consumer Price Index (CPI) inflation adjustment, representing the government's commitment to maintaining the tax's economic impact while accounting for market conditions.

Who Is Affected?
The UK Plastic Packaging Tax affects a wide range of businesses across different sectors, and understanding whether your operations fall under its scope is crucial to avoid unexpected costs or penalties. You are liable for the tax if you:

• Manufacture plastic packaging in the UK: This includes packaging components such as trays, bottles, tubs, films, and wraps—even if they are used internally or passed on to other businesses.
• Import plastic packaging into the UK: This applies whether the packaging is empty or filled with goods. For example, if you export sauces, snacks, or ready-to-eat meals in plastic containers to the UK, the packaging is still subject to the tax.
• Use packaging with less than 30% recycled plastic content: If the packaging is primarily plastic and doesn’t meet the minimum recycled threshold, it will be taxed—even if it’s only a small part of your overall product.

Industries most impacted include:

• Food and beverage (takeaway containers, sealed trays, film wrap)
• Cosmetics and personal care (bottles, tubes, pumps)
• Household and cleaning products (refill pouches, jugs, trigger bottles)
• E-commerce and logistics (mailing bags, void fill plastic, poly mailers)

Small businesses aren’t automatically exempt. If your company manufactures or imports more than 10 tonnes of plastic packaging in a 12-month period, you must register for the tax—even if you believe most of your packaging is compliant. If you’re exporting to the UK from outside the country (such as Europe, the U.S., or Asia), it’s essential to work closely with your UK distributor or logistics partner to ensure compliance.

Why This Matters for Packaging-related Businesses
For companies that rely heavily on plastic packaging—such as those in the food and beverage, personal care, e-commerce, or manufacturing sectors—the UK Plastic Packaging Tax can have a significant financial and operational impact. Starting April 1, 2025, plastic packaging that contains less than 30% recycled content will be taxed at £223.69 per tonne, up from £217.85. While the per-tonne increase may appear modest, it can quickly add up for businesses that use large volumes of non-compliant packaging. Moreover, compliance isn't just about avoiding taxes. UK retailers, distributors, and environmentally-conscious consumers increasingly demand packaging that meets sustainability standards. Failing to comply could result in damaged relationships, lost contracts, and reputational harm—especially for companies exporting to the UK.

Key concerns for packaging-heavy businesses include:

• Rising material and compliance costs
• Greater need for supply chain transparency and documentation
• Client demands for verified recycled content
• Increased pressure to switch to alternative materials (e.g., paper-based, plant fiber, or mono-material plastic)

Reassessing your packaging strategy and investing in tax-compliant materials is no longer optional—it’s a strategic necessity for maintaining market access and strengthening your brand in a sustainability-focused economy.

Strategic Packaging Solutions

To adapt to the rising UK Plastic Packaging Tax, businesses could consider the following cost-saving and compliance strategies:

• Switch to tax-compliant materials: Prioritize packaging that contains at least 30% recycled plastic to avoid the tax altogether.
• Explore alternative packaging solutions: Consider sustainable options such as paper-based, plant fiber, or mono-material plastics that support recycling. We offer both kraft paper containers and compostable fiber containers to help businesses transition smoothly to eco-friendly solutions.
• Work with knowledgeable suppliers: Collaborate with experienced partners like ENPAK, who provide reliable packaging solutions along with the necessary documentation and certifications to support full compliance with UK regulations.

By integrating these strategies into your packaging decisions, your business can reduce tax liability while aligning with the UK’s environmental goals. Contact us to learn how ENPAK can support your packaging transition and compliance needs.