The UK will increase its Plastic Packaging Tax (PPT) to £217.85 per tonne on April 1, 2025, for companies that manufacture or import plastic packaging. This will be the second increase in the tax rate since its implementation in 2022.
The tax applies to plastic packaging materials containing less than 30% recycled plastic
Businesses are subject to the tax if they meet either of the following conditions:
- They have manufactured or imported 10 tonnes or more within the past 12 months.
- They have imported or manufactured 10 tonnes or more within any 30-day period.
- What is the UK Plastic Packaging Tax
- How Enterprises Are Reacting to the Packaging Tax
- Zenpack’s Perspective
- How Global Brands Are Adapting to Plastic Reduction Trend
- Future Outlook
What is the UK Plastic Packaging Tax?
The UK government implemented the Plastic Packaging Tax (PPT) on April 1, 2022, to encourage businesses to use more recycled plastic.
- Scope of Taxation: Plastic packaging manufactured in or imported into the UK.
- Taxable Object: Any plastic packaging components containing less than 30% recycled plastic.
- Tax Rate: £217.85 per tonne, effective April 1, 2025.
- Reporting Requirements: Applicable companies must file quarterly reports with His Majesty’s Revenue and Customs (HMRC), detailing the weight of plastic packaging components imported into or manufactured in the UK, including those containing 30% or more recycled materials, and those that are exempt.
- Affected Industries: Consumer goods, food and beverage, manufacturing, retail, and others. According to estimates by PwC, approximately 20,000 UK businesses are affected.
How Enterprises Are Reacting to the Packaging Tax
In response to the increasing emphasis on plastic reduction, large enterprises are adapting through packaging adjustments, establishing transparent cost reporting systems, and strategic importing:
Packaging Adjustments for Plastic Reduction
Given that the taxable object is any packaging with less than 30% recycled plastic, many large enterprises are taking the following actions:
- Substituting packaging materials to reduce plastic content, such as Coca-Cola’s shift to glass and paper packaging.
- Increasing the proportion of recycled plastic: Unilever and P&G are both increasing the proportion of recycled and biodegradable plastics in their packaging to meet the tax exemption criteria.
- Investing in eco-friendly strategies and sustainable technologies, focusing on packaging innovation: innovating in structure and materials towards lightweight and more efficient packaging, such as Nestlé.
Establishing Transparent Cost Reporting Systems
- Collaborating with suppliers to establish a transparent supply chain system.
- Establishing a cost control system to appropriately pass on tax costs to the supply chain and consumers.
- Establishing an HMRC reporting system to ensure compliance.
Strategic Importing
Many small and medium-sized enterprises are reducing import quantities to below 10 tonnes to avoid reporting requirements. However, this method is risky, as imports below 10 tonnes, while not requiring proactive reporting, are not necessarily exempt from taxation.
Zenpack’s Perspective
We have received numerous requests from clients to transition their packaging away from plastics. Many are concerned about the potential increase in packaging costs.
To address this, we consistently advise our clients to adopt a gradual approach to sustainability transformation, focusing on three key areas: Material, Design, and Consumer Behavior.
Material:
We encourage our clients to incrementally shift their packaging materials towards sustainable alternatives, such as paper, glass, biodegradable plastics, and bio-based plastics (e.g., PLA, PHA).
This phased approach minimizes the impact on packaging costs and avoids disruptions to production lines, ensuring the company’s plastic reduction policy remains stable and resilient to profit fluctuations.
Design:
Once a company has adapted to the initial material changes and experienced the benefits of an enhanced brand image, it can proceed with packaging design adjustments. Design modifications affect production lines and supply chains, requiring long-term planning and systematic implementation, which represents a significant investment.
However, contrary to concerns about increased costs, this phase often involves strategies like lightweighting, reducing unnecessary packaging layers, and adopting more compact packaging designs.
Consumer Behavior:
To effectively shift consumer behavior, businesses should prioritize reducing single-use packaging by actively encouraging customers to utilize their own containers and reusable bags. Simultaneously, establishing robust recycling systems and engaging consumers in the recycling process is crucial for promoting reuse.
Furthermore, facilitating package-free sales by offering bulk products can significantly minimize packaging waste, fostering a more sustainable consumption model.
How Global Brands Are Adapting to Plastic Reduction Trend
Case Study: Cambio
Zenpack partnered with Cambio to create an eco-friendly, premium packaging solution that aligns with the brand’s commitment to sustainability.
Cambio needed packaging that was fully recyclable, biodegradable, and visually appealing while maintaining a high-end brand experience.
The challenge was to develop a design that not only met these sustainability goals but also provided structural durability and efficient shipping.
To address these needs, Zenpack engineered FSC-certified paperboard packaging with soy-based inks, ensuring full recyclability without compromising aesthetics.
The team designed a compact, foldable box that minimizes material waste and optimizes shipping efficiency.
By focusing on clean, minimalist branding and sustainable messaging, Zenpack helped Cambio maintain a premium look and feel while staying true to its eco-conscious values.
The result was a cost-effective, sustainable packaging solution that enhances both brand perception and environmental responsibility.
Cambio’s customers appreciate the thoughtful design, reinforcing their loyalty to the brand.
Through innovative material selection and structural engineering, Zenpack successfully demonstrated how luxury and sustainability can coexist seamlessly in modern packaging solutions.
Know more about the details of Cambio
Case Study: Opal Tadpole Camera
Zenpack partnered with Opal to design a sleek, protective, and sustainable packaging solution for the Tadpole Camera, a compact yet powerful device.
The challenge was to create packaging that securely housed the delicate camera while maintaining a premium, minimalist aesthetic that aligned with Opal’s brand identity.
Zenpack’s goal was to deliver a functional yet elegant unboxing experience that elevated the product presentation.
To achieve this, Zenpack developed a custom-molded insert using eco-friendly materials, ensuring precise protection and stability for the Tadpole Camera during transit.
The outer packaging was designed with premium finishes and high-quality printing, reinforcing the modern and sophisticated look of the Opal brand.
By integrating sustainable materials and efficient structural engineering, Zenpack minimized waste while maintaining durability and luxury appeal.
Through this project, Zenpack showcased its expertise in designing high-performance protective packaging that enhances user experience.
The Tadpole Camera’s packaging balances aesthetic simplicity, brand storytelling, and sustainability, demonstrating how Zenpack’s tailored solutions can help brands like Opal create visually compelling, functional, and eco-conscious packaging that resonates with consumers.
Know more about the details of the Opal Tadpole Camera
Case Study: Tend
Zenpack collaborated with Tend, a modern dental brand, to develop a sophisticated, sustainable, and user-friendly packaging solution that enhances the brand’s premium positioning.
Tend needed packaging that not only protected their dental products but also conveyed a clean, elegant, and high-end aesthetic that aligns with their commitment to design-driven healthcare experiences.
The challenge was to create a functional yet visually appealing unboxing experience while incorporating sustainable materials to minimize environmental impact.
To meet these goals, Zenpack designed custom structural packaging with high-quality materials that provide both durability and a refined tactile experience.
The outer packaging features precise structural engineering and premium printing techniques, ensuring that every detail reflects Tend’s minimalist and modern brand identity.
By selecting eco-friendly materials and optimizing the packaging design for efficient production, Zenpack was able to reduce waste while maintaining a luxurious feel.
Through this partnership, Zenpack successfully delivered a packaging solution that balances sustainability, functionality, and premium aesthetics.
Tend’s packaging not only enhances customer engagement and brand perception but also reinforces the brand’s dedication to high-quality, eco-conscious design.
This project exemplifies Zenpack’s ability to create customized, strategic packaging solutions that seamlessly merge brand storytelling, sustainability, and premium user experience.
Know more about the details of Tend
Future Outlook: Conclusion
The future of plastic reduction will involve a multi-faceted approach, encompassing stricter regulations and economic measures, more proactive environmental goals from businesses, and a shift from solely relying on recycling to prioritizing reduction and reuse.
Beyond providing various public services and social welfare, the purpose of taxation is to maintain social order and promote sound economic and social development within a country. With growing public awareness of environmental protection, the global trend towards reducing plastic in packaging is unstoppable.
Even though the United States has not yet implemented a plastic tax, reducing plastic in packaging will become a challenge that business owners will inevitably face in the future.
Feel free to talk with Zenpack’s experts to make sustainable packaging your business’s competitive edge and enhance your corporate brand value.
Source: GOV.UK-Plastic Packaging Tax, PwC UK-Plastic Packaging Tax
