Fresh from another fantastic edition of Packaging Innovations & Empack in Birmingham, it’s clear that the packaging industry is meeting consumer demand for sustainability in exciting ways. From creative uses of recycled substrates to pioneering circular economy solutions, the event put a well-deserved spotlight on an industry that is constantly evolving, innovating, and pushing boundaries.
At Think B2B Marketing, we have the privilege of working hand in hand with some of the most forward-thinking companies in the packaging sector. We see first-hand how brands, material developers, and manufacturers are investing in the future – whether through smarter design, new material innovations, or closed-loop recycling systems that keep packaging in the loop for longer.
This level of innovation is essential as consumers continue to make more informed, values-driven choices. But while the packaging industry is delivering on its side of the bargain, the reality is that recycling infrastructure remains fragmented and inconsistent.
Recycling may have taken the spotlight at Packaging Innovations, but this isn’t just a local market issue. At Think B2B Marketing, we work with packaging innovators across global markets, and one thing is clear – recycling infrastructure is anything but consistent. Some countries have invested heavily in advanced sorting and closed-loop systems, while others struggle with fragmented policies, outdated technology, or a lack of consumer engagement.
Even within continents, the picture is mixed. For example, Europe has made strides with extended producer responsibility (EPR) schemes, but implementation varies. The US faces challenges due to its decentralised approach, while countries like Japan lead in waste separation but still grapple with plastic dependency. This global patchwork means that even the most recyclable packaging can face barriers depending on where it ends up.
With such variation in infrastructure and policy, how does the UK compare by way of example? Can the UK’s waste management system keep up with the industry’s progress, or is it holding back the shift towards a truly circular economy?
Consumers are committed to recycling – But can the system deliver?
Engagement with recycling as a sustainability action is stronger than ever. According to the latest Pro Carton Consumer Perceptions Report (2025):
- 67% of European consumers believe recycling is the key action to combat climate change.
- 62% of respondents report they have recycled more waste in the last year.
- 84% feel confident about what can be recycled – up from 82% in 2024.
But enthusiasm alone doesn’t create a fully functioning circular economy. If infrastructure fails, or it doesn’t get the backing it needs to be effective in the long term, consumer efforts are wasted – literally.
Recycling Infrastructure Remains a Barrier
Despite the growing commitment from consumers, the UK’s recycling system remains highly fragmented. A new WRAP-Defra study has projected that by 2035, the UK will face a shortfall of three million tonnes of recycling capacity across key material streams. This includes 324,000 tonnes per year of plastic packaging, 1.7 million tonnes of paper and board, and 203,000 tonnes of metal packaging that will need additional processing capacity.
One of the biggest challenges is the lack of consistency in local authority kerbside collection systems, which means that the same piece of recyclable packaging may be processed correctly in one area but sent to landfill in another. This postcode lottery creates confusion for consumers and makes it difficult for brands to guarantee that their recyclable packaging will actually be recycled.
Confidence in different materials also varies. UK consumers overwhelmingly trust paper and cartonboard recycling (88%), but confidence in flexible plastics remains low (49%), reflecting the reality that many soft plastics still lack an effective recycling pathway. While the industry has made significant strides forward with mono-material flexible packaging, the infrastructure to process it at scale is still lagging behind.
Looking across Europe, Italy and Spain lead in sustainable purchasing decisions, with 59% and 58% of consumers, respectively, considering environmental impact at the point of sale. In contrast, Germany stands out for rejecting excessive packaging, with 27% of consumers switching brands due to unnecessary waste. These statistics highlight that while European consumers are embracing sustainability, progress in infrastructure and policy varies significantly from country to country.
For the UK to match European leaders, investment in a nationwide recycling strategy is crucial. Otherwise, businesses that invest in recyclable packaging may find their efforts undermined by an outdated and inconsistent waste management system.
The packaging industry is leading the way
One of the key takeaways from Packaging Innovations 2025 was that brands and manufacturers aren’t waiting for government action. The industry is pushing forward with material advancements, including:
- Mono-material packaging for easier recycling
- Increasing levels of recycled content integrated into new designs
- Closed-loop systems keeping materials in circulation
The packaging industry is doing its part, but real systemic change requires government intervention.
Government action is needed to match industry progress
The UK government has taken steps to improve packaging sustainability through policy measures such as Extended Producer Responsibility (EPR), which shifts the financial burden of waste management from taxpayers to packaging producers. In theory, this should encourage brands to design packaging that is easier to recycle, but in practice, we’re still waiting to see if the existing infrastructure can keep pace.
Another significant initiative is the Plastic Packaging Tax, which places a financial penalty on businesses that fail to include at least 30% recycled content in their plastic packaging. While this policy has encouraged greater uptake of recycled materials, the challenge remains in ensuring that the UK’s waste management system can process these materials effectively and supply sufficient quantities of recyclate, rather than seeing the valuable material exported or downcycled.
Most notably, the recent launch of PackUK, debuting at Packaging Innovations, marks a potential turning point for UK recycling infrastructure. Reminiscent of WRAP, as the new scheme administrator for packaging EPR, PackUK will oversee the implementation of a system designed to unlock a potential £10 billion of investment in recycling services over the next decade. This level of funding could be a real game-changer, helping to establish more consistent collection services across local authorities, improving sorting facilities, and modernising recycling technology. Additionally, the scheme is projected to create up to 21,000 new jobs in England alone, highlighting the economic as well as environmental benefits of serious investment in recycling.
However, policy alone is not enough. A University of Manchester study found that 39 different bin regimes and 3,500 recycling plants with varying capabilities are contributing to widespread confusion, leading to high contamination rates and inefficiencies. For a truly effective circular economy, the UK needs a unified recycling system that eliminates regional inconsistencies and ensures that packaging designed for recyclability is actually processed accordingly. And, crucially, collaboration between government, local authorities, and industry stakeholders must be prioritised to ensure that regulations align with real-world capabilities.
Recycling is the future – but only if we get it right
The direction is clear: recycling is a cornerstone of packaging sustainability. Consumers are engaged, and producers are leading the charge with innovation. But without investment in infrastructure, we risk falling into a cycle of missed opportunities and lost materials.
With PackUK promising real change, now is the time for the government to step up, support industry progress, and ensure recycling infrastructure meets demand.
At Think B2B Marketing, we help brands communicate sustainability with clarity and credibility. If you’re navigating the evolving regulatory landscape or want to highlight your circular economy credentials, we’re here to help. Get in touch today.
