> ## Content Index > Fetch the complete content index at: https://packaging-europe.ghost.io/llms.txt > Use this file to discover other available public pages before exploring further. # Businesses continue to use less recyclable materials under EPR, data warns - URL: https://packaging-europe.ghost.io/businesses-continue-to-use-less-recyclable-materials-under-epr-data-warns/ - Published: 2026-07-13T09:04:00.000Z - Updated: 2026-07-13T09:23:02.000Z - Author: Packaging Europe staff writers - Tags: Business, Sustainability, Recyclability, Regulation & Compliance, #layout-s, #type-article, #packaging-europe, #Import 2026-09-08 15:54 **89% of obligated packaging producers continue to use non-recyclable, hard-to-recycle, or mixed-rating packaging under extended producer responsibility laws, according to data from the Department for Environment, Food & Rural Affairs (**[**Defra**](https://www.gov.uk/government/organisations/department-for-environment-food-rural-affairs?ref=packaging-europe.ghost.io)**).** The figures stem from a Freedom of Information request by [BagKraft](https://bagkraft.co.uk/?ref=packaging-europe.ghost.io) and were released under Environmental Information Regulations. They suggest that among the 11,701 obligated packaging producers in the UK, 89% continue to supply less sustainable packaging. Under the UK’s [extended producer responsibility](https://packagingeurope.com/news/what-does-the-uks-packaging-epr-scheme-look-like/13018.article?ref=packaging-europe.ghost.io) laws (pEPR), eco-modulation will apply from the 2026-2027 financial year. Every unit of packaging will be assigned a colour – red, amber, or green – based on its recyclability under existing waste management processes. If a pack falls under the green category, it is considered easier to recycle and will incur lower fees. The red category is reserved for hard-to-recycle formats and will incur higher fees. An amber rating means that the packaging will not be subject to modulated fees. According to Defra, 75% of producers use a mixture of red, amber, and green-rated packaging; this is linked to a wider difficulty for businesses to fully transition away from ‘problematic’ materials, with only 10% thought to supply strictly green-rated packaging across their operations. Apparently, 14% of producers exclusively use packaging that falls into the red category, leaving 1 in 7 businesses entirely reliant on hard-to-recycle materials. Another 1% of producers are said to supply only amber-rated packaging and create further recycling challenges. BagKraft highlights the ‘significant gap’ between corporate sustainability goals and actual supply chain performance in the UK – warning that businesses relying on red or amber-rated packaging will face ‘significant’ operational costs and reputational risks. Switching to easily recyclable and high-performance materials could help brands and retailers protect themselves from penalties and meet consumer demand for sustainability-minded packaging, BagKraft adds. “This data from Defra is a stark reminder that while the conversation around sustainability is everywhere, the physical transition is lagging,” said Jon Marling, managing director of BagKraft. “Seeing that only 10% of producers are operating entirely in the ‘green’ zone is a wake-up call. Moving away from ‘red’ and mixed-material packaging isn’t just an environmental obligation anymore—with pEPR fees escalating, it is a financial necessity.” Packaging Europe previously took a [closer look](https://packagingeurope.com/news/what-does-the-uks-packaging-epr-scheme-look-like/13018.article?ref=packaging-europe.ghost.io) at the current and future expectations of pEPR – breaking down the base fees, expected fee modulation, and any exemptions from the scheme’s expectations. In other news, the [Federal Council](https://www.admin.ch/en/the-federal-council?ref=packaging-europe.ghost.io) of the Swiss Confederation has just published a [new ordinance for packaging](https://packagingeurope.com/news/switzerland-updates-packaging-law-with-minimum-recycling-rates-and-more/14470.article?ref=packaging-europe.ghost.io). Its extended producer responsibility laws will apply from 1 January 2030, using [eco-modulated fees](https://packagingeurope.com/news/how-swiss-packaging-law-compares-to-the-packaging-and-packaging-waste-regulation/14481.article?ref=packaging-europe.ghost.io) to incentivize business to introduce recycled content into their packaging materials. A [study](https://packagingeurope.com/news/report-urges-eu-to-close-national-epr-gaps-via-circular-economy-act/14472.article?ref=packaging-europe.ghost.io) commissioned by [EUROPEN](https://www.europen-packaging.eu/?ref=packaging-europe.ghost.io) and conducted by [CIRCPACK](https://www.circpack.veolia.com/?ref=packaging-europe.ghost.io) by [Veolia](https://www.veolia.com/en?ref=packaging-europe.ghost.io) has also urged the [European Commission](https://commission.europa.eu/index%5Fen?ref=packaging-europe.ghost.io) to address ‘wide’ performance gaps between national packaging EPR systems across the EU via the upcoming Circular Economy Act. **If you liked this story, you might also enjoy:** [***The ultimate guide to packaging innovation in 2026***](https://packagingeurope.com/features/the-ultimate-guide-to-packaging-innovation-in-2026/13821.article?ref=packaging-europe.ghost.io) [***Packaging and Packaging Waste Regulation: what to know in 2026***](https://packagingeurope.com/features/the-ultimate-guide-to-the-packaging-and-packaging-waste-regulation-in-2026/13960.article?ref=packaging-europe.ghost.io) [***Everything you need to know about global packaging sustainability regulation***](https://packagingeurope.com/features/report-the-ultimate-guide-to-global-packaging-sustainability-regulation-in-2025/12733.article?ref=packaging-europe.ghost.io) [***Strategic learnings from the Sustainable Packaging Summit***](https://packagingeurope.com/features/strategic-learnings-from-the-2025-sustainable-packaging-summit/13750.article?ref=packaging-europe.ghost.io)