9 in 10 UK Packaging Producers Still Supply Hard-to-Recycle Materials, Defra Data Reveals

Priory Direct • 30 July 2026

Contents

The data
Red, amber and green ratings
Why it matters now
What producers should do

Newly released figures from the Department for Environment, Food & Rural Affairs (Defra) show a wide gap between sustainability ambition and reality in UK packaging. The vast majority of obligated producers are still placing materials on the market that are difficult, or impossible, to recycle — just as eco-modulated Extended Producer Responsibility (pEPR) fees begin to bite.

The numbers behind the headline

89%

supply non-recyclable, hard-to-recycle or mixed packaging

10%

operate entirely in the ‘green’ zone

11,701

obligated producers covered by the data

1 in 7

rely exclusively on ‘red’-rated packaging

The data

The figures came to light through a Freedom of Information request submitted by BagKraft, a manufacturer of sustainable bags and promotional packaging, and were released by Defra under Environmental Information Regulations. They cover the 11,701 businesses currently obligated under the UK’s packaging producer responsibility rules.

Of those producers, 89% are still supplying packaging that is non-recyclable, hard to recycle, or of mixed composition. Only around one in ten has fully transitioned to packaging classified as readily recyclable.

Red, amber and green ratings

Under the Recyclability Assessment Methodology (RAM) developed by PackUK and Defra, household packaging is rated red, amber or green. That rating determines how much a producer pays under the modulated pEPR scheme — the worse the recyclability, the higher the fee.

The breakdown is stark. 14% of producers supply exclusively red-rated packaging, meaning one in seven businesses remains entirely reliant on materials classed as difficult or problematic to recycle. A further 1% supply strictly amber-rated packaging. Three-quarters (75%) supply a mix of red, amber and green — showing that the majority have started, but not completed, the shift.

Only 10% of producers are operating entirely in the green zone — a clear signal that the physical transition is lagging well behind the conversation.

Why it matters now

Eco-modulation under pEPR applies from the 2026–2027 financial year, so recyclability ratings now translate directly into cost. Producers sitting on red or mixed-material portfolios face escalating fees on top of the reputational and regulatory pressure. The data reframes packaging choice as a financial decision rather than purely an environmental one.

“This data from Defra is a stark reminder that while the conversation around sustainability is everywhere, the physical transition is lagging. Moving away from red and mixed-material packaging isn’t just an environmental obligation anymore — with pEPR fees escalating, it is a financial necessity.” Jon Marling
Managing Director, BagKraft

Recyclability is no longer a soft target. Under eco-modulation, every red-rated component carries a measurable, recurring cost.

What producers should do

Audit your packaging portfolio

Identify which components fall into red, amber or green ratings under the RAM. You can’t manage a fee exposure you haven’t measured.

Prioritise the red-rated items

Mixed-material and hard-to-recycle formats attract the highest modulated fees. Switching these first delivers the fastest cost reduction.

Switch to recyclable, fibre-based alternatives

Widely recycled formats — cardboard boxes, paper-based void fill, and recyclable padded envelopes — move packaging toward the green zone while remaining kerbside-recyclable for customers.

Act ahead of the deadline

With eco-modulation live from 2026–2027, early movers insulate themselves from rising fees while meeting growing customer expectations.

At Priory Direct, our range is built around planet-friendly, widely recyclable materials — helping businesses move out of the red and toward genuinely recyclable packaging without compromising on protection or performance.

Sources