Plastic Packaging Reduction Targets Toughened Under Government Circular Economy Plan

The government has published a strengthened circular economy strategy that includes toughened plastic packaging reduction targets for food manufacturers and retailers, with mandatory reduction requirements taking effect from 2027 and an extended producer responsibility framework that will require companies placing plastic packaging on the market to fund improvements in collection and recycling infrastructure.

The measures represent an acceleration of the government’s pre-existing plastic waste strategy and respond to sustained pressure from environmental groups, supermarket sustainability teams and a significant proportion of the public who cite plastic pollution as one of their primary environmental concerns. The strategy distinguishes between unnecessary packaging — items that can be eliminated without affecting food safety or product integrity — and necessary packaging that will need to transition to recycled content or genuinely recyclable materials.

Food manufacturers expressed concern about the timescale for the 2027 mandatory targets, arguing that reformulating packaging across extensive product ranges required lead times of two to three years and that the investment in new materials and production equipment was substantial. Some companies also raised issues around the availability of food-grade recycled plastic at sufficient volumes to meet the requirements of entire product portfolios.

Local authority recycling organisations welcomed the extended producer responsibility element of the strategy, which had been a long-standing demand from councils that had borne the cost of collecting and sorting plastic waste while manufacturers faced no direct financial obligation to fund the system. The new framework shifts a significant portion of those costs onto producers, creating a financial incentive to design packaging for recyclability from the outset.