As the UK prepares for the standardisation of local authority collections in March 2026 under DEFRA’s Simpler Recycling initiative, packaging manufacturers face a blend of high-stakes challenges and strategic opportunities. Think B2B Marketing, communications specialist serving the packaging sector, shares perspective on how these upcoming changes will change how UK manufacturers compete.
Although household recycling rates have improved over the last decade, progress has stalled in recent years - prompting the government to introduce major reforms. These include Simpler Recycling and pEPR, aimed at making recycling more consistent and shifting the financial burden of packaging waste onto producers.
The standardisation promises to simplify the currently fragmented ‘postcode lottery’ recycling landscape where certain packaging can be recyclable in one local authority but not in another. However, for manufacturers with established production lines optimised for materials that may fall outside the new standardised categories, the transition means uncertainty and big investment decisions ahead.
"Packaging manufacturers are caught in a planning paradox," explains Joanna Stephenson, Managing Director at Think B2B Marketing. "They need to make production investment decisions 12-18 months in advance, but without complete visibility of the final standardised collection specifications. This creates significant commercial risk at a time when cost pressures are already intense across the supply chain."
Think B2B Marketing's conversations with packaging manufacturers reveal that the consequences of delayed action extend far beyond compliance issues. As tightening legislation around sustainability comes into effect, the recyclability of packaging is becoming a primary decision factor for brands when selecting suppliers.
"What we're observing across the industry is a major shift in buying criteria," notes Joanna. "Historically, brand owners selected packaging partners based on price, quality, speed and service. It’s changing fast. Now, they're increasingly evaluating how supplier choices will impact their own pEPR obligations - because under the new system, essentially the more recyclable the packaging, the lower the compliance cost. That’s compounded by Scope 3 carbon reporting changes that will scrutinise the full packaging value chain.
"From a communications perspective, we're seeing a major disconnect. Many packaging suppliers still lead with technical specs and material capabilities. They’re certainly impressive, but buyers are increasingly looking for partners that can demonstrate how their packaging helps reduce pEPR costs and streamline compliance. The companies gaining the most ground are not just selling packaging, they’re offering pEPR cost reduction and turning compliance into a selling point. This subtle but powerful shift in messaging is proving remarkably effective in maintaining and growing market share as suppliers scramble to keep up.
"We're advising our packaging clients to engage early with assessment tools like OPRL's Recyclability Assessment Tool, initiate transparent conversations with customers about potential reformulation needs, and develop modular production approaches that can adapt flexibly to evolving standards. Most importantly, they need to focus less on features, and more on outcomes, to emphasise pEPR cost reduction rather than traditional packaging benefits.
"The winners in this transition will be manufacturers who treat recyclability as a commercial edge, not a hoop to jump through. The value proposition has to change. Those who don't adapt quickly enough could find themselves excluded from tender opportunities, regardless of their historical relationships. In today’s reality - where we’re laying the legislative groundwork for tomorrow - recyclability could well decide which suppliers move forward, and which get left behind.”
To learn more about Think B2B Marketing and its activities, please visit www.ThinkB2BMarketing.com.