Progress on increasing recycled content in plastic packaging stagnating

Green Solutions Packaging Solutions

Progress on increasing recycled content in plastic packaging is stagnating with more than a third still failing to contain even 30% recycled plastic.

HMRC data on Plastic Packaging Tax revenue states that of the total tonnage of plastic packaging manufactured in and imported into the UK, 37% was declared as taxable under PPT (2024 / 2025: 38%).

Of the remaining 63% of plastic packaging tonnage manufactured in and imported into the UK, 51% met the 30% or more recycled plastic threshold, 11% was either exported, intended for export or converted and less than 1% was exempt because it was used for the immediate packaging of human medicines.

Plastic Packaging Tax revenue accrued by HM Revenue and Customs (HMRC) in the financial year 2025 to 2026 totalled £250 million, decreasing by 4% compared to 2024 to 2025, which totalled £261 million, as of 13 August 2026, there were 5142 businesses registered for PPT.

David Gudgeon, head of external affairs at Reconomy, the international circular economy specialist, commented: ‘The latest data shows that progress on increasing recycled content in plastic packaging appears to be stagnating, with more than a third of plastic packaging still failing to contain even 30% recycled plastic. With the proportion barely changing from 38% to 37% year on year, there is clearly much further to go to reduce reliance on virgin material.

‘With prices for virgin plastic remaining persistently low, these figures aren’t surprising as it is often far cheaper to use new material than recycled content.

‘This dynamic should start shifting as a range of policy measures begin to drive increased demand for recycled material, particularly Packaging Extended Producer Responsibility (EPR), Simpler Recycling and the Plastic Packaging Tax.

‘More importantly though, UK recycling infrastructure is not currently equipped to cope with a significant increase in plastic packaging collected for recycling. The widely documented structural challenges facing the sector, including competition from cheaper virgin plastics and soaring labour and energy costs, have forced many recycling plants to shut. As a result, the UK remains heavily reliant on exporting plastic material, with the latest UK government data showing that only around half (51%) of plastic packaging is recycled in the UK.

‘We would urge the government to create the conditions needed to unlock greater investment in domestic recycling infrastructure. In particular, it should consider following the EU’s lead by introducing mandatory minimum recycled content requirements for plastic packaging. This would create more predictable demand for recycled material, providing greater certainty for recyclers and processors, while dovetailing with England's plans to include flexible plastics in Simpler Recycling from April 2030. These requirements could include progressive targets for different grades of material, recognising that some packaging formats can accommodate higher levels of recycled content than others – for example, PET and HDPE bottles could have a minimum recycled content target of 75%, while LDPE could move towards 100%.

‘This would help tackle the 37% of packaging that currently falls below the Plastic Packaging Tax threshold, while supporting investment in recycling capacity, cutting plastic waste and carbon emissions and accelerating the transition to a circular economy.’