As we move into the second half of 2025, UK businesses are under more pressure than ever to innovate on plastics. With the Plastic Packaging Tax increase already in place from April 2025, and Extended Producer Responsibility (EPR) gearing up for modulated fees in 2026, packaging strategies are firmly in the spotlight.

At the same time, major brands are rolling out solutions that could define the future of packaging — and the circular economy.

• Plastic Packaging Tax (PPT): The PPT rate rose in April 2025 to £217.85 per tonne on packaging with less than 30% recycled content. For brands not already embedding recycled materials, the cost signal is now unavoidable.

• Extended Producer Responsibility (EPR): Producers continue reporting 2025 packaging data, with modulated fees starting in 2026. That means recyclability ratings will soon directly impact costs.

• UK’s SSPP Challenge: Investment in Smart Sustainable Plastic Packaging projects is ongoing, aiming to reduce over 1.5 million tonnes CO₂e by 2030 through innovation in reuse, refill, and biobased systems.

Tesco & Faerch: In July 2025, Tesco confirmed the expansion of its PET tray-to-tray scheme with Faerch, ensuring ready-meal trays are recycled back into food-grade packaging — a major step toward closing the loop.

Unilever: Throughout 2025, Unilever has scaled its “Future Flexibles” R&D programme, doubling investment in recyclable and compostable packaging. It has pledged all plastic packaging will be reusable, recyclable, or compostable by 2025, with updates expected this autumn.

Aldi: By mid-2025, Aldi had rolled out crisp packaging containing 35% recycled plastic, cutting around 78 tonnes of virgin plastic annually. It continues to trial higher recycled content across own-label ranges.

Notpla & Xampla:

• Notpla, with its seaweed-based packaging, continues to scale in retail and foodservice, with pilots replacing millions of single-use plastic units in 2025.

• Xampla has commercialised its Morro™ coating, a PFAS-free, fully biodegradable alternative to plastic linings, and in September 2025 is expected to announce new corporate partnerships.

• Businesses that haven’t already adapted to the 2025 PPT increase are now absorbing higher costs.

• With EPR modulated fees coming in 2026, recyclability is about to become a direct cost and compliance issue.

• Consumer demand for sustainable packaging is only intensifying — and brands that act now stand to benefit.

Want to see plastics and packaging innovation in action? Visit:

Buss ChemTech & RECOUP at the Sustainability Clinic, Clearpoint Recycling Ltd, Biobag Plastics Ltd, APS UK Ltd, Vanden Recycling Ltd — plus hundreds of other exhibitors showcasing circular packaging solutions.

📅 7–8 October 2025 | ExCeL London
🎟️ Register free today: www.recyclingexpo.co.uk