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The Plastics Packaging Tax: process challenges

23 July 2021

Darren Dodd discusses the technical and commercial challenges that food processors will face while transitioning to using 30% recycled plastic. 

The Government’s announcement, in November 2020, regarding the Plastic Packaging Tax has put the issue of sustainability front and centre of processors’ minds. 

The tax, which comes into effect in April 2022, aims to provide an economic incentive for businesses to use recycled materials in their plastic packaging. It will mean a £200 per tonne tax on all plastic that contains less than 30% recycled content. It will affect UK producers of plastic packaging, importers of plastic packaging, business customers of producers and importers of plastic packaging, and consumers who buy goods in plastic packaging in the UK. 

Although the idea of a recycled plastic packaging incentive seems good on paper, what are the technical, and commercial issues for food processors?

Firstly, the plastics currently used demonstrate excellent barrier properties that have improved the safety, extended the shelf life and reduced product waste, so alternatives must impart the same benefits.  

Secondly, while it is relatively simple to incorporate recycled content into rigid plastics such as those used for trays, doing the same for such as flexibles and films presents a challenge. 

Thirdly, for the packaging of food, there are very few suitable and approved materials available  – especially for flexibles and films. Food manufactures could therefore be forced to pay taxes due to a lack of viable, approved alternatives to the packaging materials they currently use.

The commercial issue around the packaging tax is the availability of recycled plastic. According to WRAP: ‘Lack of material availability is a key barrier to achieving The UK Plastics Pact target of 30% average recycled content across all plastic packaging.

How can food processors be provided with consistent supply, quality and price of packaging that complies to the tax, when the disjointed UK infrastructure of the present plastics recycling schemes means that there is limited access to large-scale recyclate supply? 

What does it mean?
In the first instance, if appropriate plastic recylcates are available food processors should be able to make the switch to 30% recycled plastic packaging within existing production lines, without any need for machine upgrades. However, in the longer term, the packaging tax will drive food processors to look at their plastic consumption patterns and if primary and secondary packaging is reduced or removed, this will have implications for future food packaging machine adjustments. 

Larger producers are already making moves in this direction. High profile examples include Heinekin’s removal of plastic nets on beer can multipacks and replacement with recyclable cardboard toppers, and Tesco’s commitment last year to get rid of 67 million pieces of plastic by removing wrapping from packs of baked beans, tuna and soup. Many other companies are also looking at lightweighting of packaging to reduce plastic consumption, or like Yakult, using induction heat sealed foil caps to avoid the use of plastic overcaps altogether. 

At the end of day, a greater conversation is going to be needed between packaging suppliers and food processing engineers as to what the implications of the packaging tax will look like on each production line. It remains to be seen whether the Government’s Plastic Packaging Tax will deliver the circular economy it is aiming for, but one thing is certain – the clock is ticking. 

Darren Dodd is sales and marketing director at Selig.


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