What’s New?

A new industry-backed report highlights mounting pressure on the UK’s recycling system:

• Current UK reprocessing capacity can handle only around 23% of plastic packaging placed on the market
• Over 200,000 tonnes of recycling capacity have already been lost since 2024 due to market volatility and high costs
• The sector risks losing most of its remaining infrastructure by 2030 without intervention Industry leaders are calling for policy reform, investment support, and stronger demand for recycled content

The warning reflects growing concern that the UK’s domestic recycling system is struggling to keep pace with demand and regulation.

Why This Matters

This is more than an operational issue — it’s a threat to the UK’s circular economy ambitions:

• Without action, the UK could become increasingly reliant on exporting plastic waste or importing recycled material
• A weakened domestic sector undermines progress toward circular packaging systems and sustainability targets
• Rising costs, policy uncertainty, and inconsistent demand are making it harder for recyclers to remain viable
• At the same time, upcoming regulations like EPR will require stronger, more resilient infrastructure

The sector is at a point where decisions made now will determine whether the UK builds a self-sufficient circular system - or falls further behind.

Who Should Care?

• Packaging manufacturers & recyclers – Directly impacted by capacity constraints and market instability
• Food & FMCG brands – Increasing pressure to source recycled content and meet regulatory targets
• Retailers – Will need to align packaging strategies with evolving infrastructure realities Policymakers & regulators – Critical role in shaping investment, incentives, and long-term stability
• Industry platforms – Key opportunity to connect stakeholders and accelerate solutions

Read the full article at Lets Recycle