The British Brands Group and other trade bodies urge the UK Government to review overlapping packaging regulations, rising compliance costs and their potential impact on businesses and consumers.
The British Brands Group (BBG), alongside trade bodies representing several UK industries, has raised concerns about the rising costs of packaging regulations and their potential impact on businesses and consumers. In a joint letter to the UK Government, the organisations called for a more coordinated approach to packaging policy.
The letter recognises the importance of reducing unnecessary packaging, increasing recycling, encouraging the use of recycled materials and ensuring that producers contribute appropriately to packaging waste management. However, the organisations argue that overlapping regulatory requirements are increasing costs across the supply chain without delivering corresponding improvements in packaging recovery.
The concerns come despite a temporary intervention announced the previous week to lower plastic recycling obligation thresholds. According to the signatories, this measure does not go far enough to address the financial pressures facing manufacturers and distributors.
Multiple Packaging Regulations Increase Business Costs
The UK packaging framework includes several measures, such as Packaging Extended Producer Responsibility (pEPR), Plastic Packaging Tax (PPT) and Packaging Recovery Notes (PRNs). Each has its own environmental objectives, but businesses face different reporting requirements, payment schedules and assessment processes.
The organisations say these overlapping obligations create additional administrative work and financial pressure. Managing separate timelines, payment bodies and data requirements can generate compliance costs that rival or even exceed the direct charges.
Furthermore, the European Union’s Packaging and Packaging Waste Regulations (PPWR) will add further requirements for businesses placing products on the market in Northern Ireland or exporting to the EU.
The impact extends across multiple sectors, including packaging manufacturing, food and drink, cosmetics and personal care, medical devices, brewing, horticulture, construction and hospitality.
According to the letter, one large multinational company reported that its total UK packaging-related costs had reached approximately twice the level seen in comparable European countries, without a corresponding improvement in packaging recovery.
Smaller brands have also reported difficulties. Some say higher regulatory costs prevent them from hiring in-house specialists to assess alternative packaging solutions. As a result, they continue using existing plastic packaging rather than investing in new options.
Packaging Data and Recycling Obligations Create Further Challenges
The letter highlights the experience of a UK fine-fragrance importer and distributor that developed a dedicated system to convert packaging data from an overseas brand owner into biannual pEPR submissions.
An Environment Agency audit also required detailed supporting evidence, including the weight of void fill used in each carton.
Although the same data determines the company’s PRN obligation, the cost and availability of wood PRNs have created further difficulties. Prices rose from around £7.50 per tonne in the previous year to more than £100 per tonne. Despite the increase, wood PRNs remain largely unavailable, leaving the business unable to meet its obligation even at the higher price.
The example illustrates how data requirements, audit processes and limited availability of compliance instruments can create challenges for businesses operating across international supply chains.
Rising Packaging Costs Could Affect Consumer Prices
The signatories also questioned whether government estimates fully reflect the potential impact of packaging regulations on individual products and sectors.
According to the letter, the Department for Environment, Food and Rural Affairs (DEFRA) estimated that pEPR would add 0.07% to the Consumer Prices Index (CPI) and have a projected impact of 0.37% on the Retail Prices Index (RPI).
However, the organisations argue that the effect on food and drink prices could be considerably higher. Food and drink-related categories account for less than 20% of the RPI but represent more than 80% of EPR fees, according to the letter.
The document also refers to anonymised examples from the first quarter of 2025 showing projected inflationary impacts from EPR alone, excluding PRNs and PPT.
Businesses may absorb some additional costs through efficiency improvements and innovation. However, the signatories note that this is not always possible. Retailers typically operate on single-digit margins, meaning costs can pass through the supply chain and ultimately affect consumers.
The letter highlights continuing pressure on household budgets. Between January 2020 and July 2025, UK food and non-alcoholic drink prices rose by 37%, compared with a 28% increase in overall UK prices. Milk, cheese, eggs and oils recorded the steepest increases.
The Food and Drink Federation’s forecast cited in the letter predicts that food and non-alcoholic drink inflation will reach 3.9% in December 2026, with inflation over 2026 at 2.8%. It also forecasts inflation of 5.5% in 2027, peaking at 6.4% in July 2027.
According to the letter, rising costs across energy, ingredients, transport, logistics and packaging could reverse the recent slowdown in food inflation.
Industry Calls for a Coordinated Packaging Policy Framework
The British Brands Group and supporting organisations have urged the UK Government to take a more comprehensive view of the country’s packaging policy framework.
Their key requests include:
- Reviewing regulatory interactions: Assessing how different packaging measures work together and identifying unintended consequences.
- Evaluating costs and benefits: Determining whether the combined financial and administrative burden is proportionate to the environmental benefits achieved.
- Providing greater certainty: Helping businesses make long-term investment and packaging decisions with greater confidence.
- Aligning regulatory requirements: Improving consistency and operational efficiency while maintaining clear incentives for innovation, recyclability and packaging waste reduction.
- Assessing consumer price impacts: Understanding how packaging regulations affect everyday goods and considering these effects in future policy development.
The letter also highlights the need to coordinate existing packaging measures with the planned introduction of a Deposit Return Scheme for drinks manufacturers in 2027.
Industry Seeks Dialogue with Government
The signatories emphasise that their concerns relate to the implementation and interaction of packaging regulations rather than the environmental objectives themselves.
They point to the experience of businesses that have redesigned packaging, invested in sustainable materials, engaged with supply chains and responded to consumer expectations.
The organisations believe this experience can help identify where policies are working effectively and where overlapping requirements may produce unintended consequences.
The British Brands Group has offered to meet with government representatives alongside its members and other signatories. The proposed discussions would explore ways to deliver environmental improvements while maintaining business competitiveness, protecting consumer choice and keeping everyday products affordable.