Almost two-thirds of flexible plastic packaging assessed under the UK’s Recyclability Assessment Methodology (RAM) received the lowest recyclability rating in 2025, potentially increasing packaging costs for producers under extended producer responsibility (pEPR).
Analysis by circular economy specialist Reconomy of newly released Environment Agency packaging data found that 61.8% of flexible plastic assessed under RAM received a red rating. The packaging represented almost 245,000 tonnes.
The findings come as recyclability begins to play a greater role in determining the fees paid by large packaging producers under the UK’s pEPR system.
Under pEPR, large producers contribute towards the cost of collecting and recycling packaging waste. Fees continue to be based on the material and weight of packaging placed on the market, but from the 2026/27 assessment year they will also be adjusted according to recyclability.
Red-rated packaging will attract a 20% higher rate per tonne than amber-rated packaging, while green-rated packaging will receive a discount.
Producers with a large proportion of red-rated packaging could therefore face higher overall pEPR bills as the recyclability-based charges take effect.
The Environment Agency data also shows that the total amount of packaging reported by large UK producers fell by 1.2% in 2025.
Reported tonnage declined by approximately 135,000 tonnes, from 11.11 million tonnes in 2024 to 10.97 million tonnes in 2025.
Plastic recorded the largest reduction, falling by approximately 52,300 tonnes, followed by glass, which declined by around 51,600 tonnes. Steel packaging fell by approximately 25,500 tonnes, while fibre composite packaging decreased by around 12,200 tonnes.
Aluminium was the only material to record a notable increase, rising by approximately 8,700 tonnes. Paper and card volumes remained broadly unchanged.
The reduction in reported packaging tonnage could indicate that some producers had already begun reviewing or changing their packaging ahead of the introduction of pEPR charges.
The first pEPR assessment year began on 1st April 2025, with the first invoices issued in October 2025.
Reconomy is advising businesses to assess their packaging portfolios as recyclability becomes increasingly important to the cost of compliance.
The company recommends that producers improve the quality of their packaging data, identify opportunities to reduce packaging weights and explore ways to increase the recyclability of their packaging.
Richard Hardstaff, Sales Development Manager at Eurokey by Reconomy, said: ‘pEPR represents a major shift in how the costs of packaging waste are handled. With nearly two-thirds of the flexible plastic assessed under RAM receiving a red rating, many producers could face higher per-tonne charges when modulated fees are applied.
‘We recommend that businesses reassess their packaging to understand their potential fee exposure and identify opportunities to reduce weight and improve recyclability. Those that act early will be better placed to manage their fees and contribute to a more circular economy.’