How EPR is Shaping UK Packaging: Key Challenges & Swiftpak Solutions

According to a recent BBC report, UK retailers are already feeling the pressure, with some warning that EPR could triple their packaging waste costs. Set to replace the current packaging waste regime, EPR shifts the financial burden of recycling from local authorities onto producers, requiring them to cover the full net cost of collecting, sorting and recycling packaging waste.

While the regulations aim to improve recycling rates and reduce unnecessary waste, they also represent a significant shift in how businesses must approach packaging, from design and materials to data tracking and reporting.

At Swiftpak, we understand how disruptive these changes can be. That is why we are committed to supporting businesses through the EPR transition with expert advice, sustainable packaging solutions and proactive compliance support. From reducing packaging costs to simplifying data collection, we are helping businesses adapt, without compromising on performance or sustainability.
In this blog, we will break down what EPR means for your business, explore the biggest challenges ahead and show how Swiftpak is helping customers future-proof their packaging strategies under the UK’s new regulatory framework.

Understanding EPR: What is Extended Producer Responsibility?

Extended Producer Responsibility (EPR) for packaging is a policy approach that requires businesses that produce, supply, import or sell packaged goods in the UK to take responsibility not just for creating packaging, but fir its full lifecycle. This includes collection, recycling and disposal. The idea is to shift some of the burden from local authorities and taxpayers onto the producers themselves, thereby incentivising more sustainable packaging design, better recycling systems and reduced waste.

For a full, detailed explanation of EPR, you can refer to official guidance from GOV.UK and expert commentary by firms such as PwC, and our updated article, which cover everything from definitions to full compliance obligations.

Why EPR matters

EPR has rapidly moved from policy talk to a front of mind concern for many UK retailers and producers, and for good reason.
A recent BBC article highlighted growing alarm within the retail sector, with major brands like Marks & Spencer warning that packaging waste costs will rise sharply under the new EPR regulations. Industry leaders have described the shift as being ‘raided like a piggy bank’, with early estimates suggesting the cost burden for producers could reach £2 billion annually once fully implemented.

These dramatic cost increases stem from a fundamental shift in responsibility. Under EPR, producers are now financially accountable for the full lifecycle of their packaging, including collection, recycling and disposal. These costs were previously shouldered by local authorities and taxpayers.

The Government’s aim: Waste reduction and better recycling

While the financial implications are significant, the overarching goal of EPR is clear: to curb packaging waste and boost recycling rates across the UK.

The government has stated that EPR is designed to:

• Reduce unnecessary packaging by encouraging businesses to design more sustainable and minimal packaging solutions.
• Improve recycling systems by funding better infrastructure and services using the fees collected from producers.
• Shift environmental responsibility upstream, so that those placing packaging on the market are incentivised to make greener choices.

From 2026, modulated fees will be introduced, meaning packaging that is easier to recycle will attract lower fees, directly rewarding sustainable design decisions.

EPR isn’t just a cost increase, it’s a call to action for businesses to rethink their packaging strategies and an opportunity to align with a more circular, responsible economy.

Core challenges for UK packaging businesses

As EPR rolls out across the UK, packaging producers and suppliers are facing a complex set of challenges: financial, operational and strategic. While the scheme is designed to promote environmental responsibility, it brings with it a number of significant pressures for businesses to manage.

1.  Financial impact

One of the most immediate and pressing concerns is the sharp rise in packaging compliance cost. Businesses that previously paid modest fees under the Packaging Waste Recovery Note (PRN) system may now be facing up to three times the cost under EPR.

Estimates suggest that UK packaging sector could see total EPR costs rise to around £2 billion annually, with individual producer contributions based on the type, volume and recyclability of packaging place on the market. This is particularly challenging for businesses operating with tight margins, or those reliant on hard to recycle materials.

2.  Administrative complexity

EPR isn’t just more expensive, it is also administratively demanding. Businesses now face:

• More detailed and frequent data collection and reporting
• The need to track packaging across its full lifecycle, including how and where it is sold, consumed and disposed of.
• Strict rules around registration deadlines, evidence submission and compliance declarations.
• Increased risk of penalties for non-compliance or inaccurate reporting.

For many organisations, this means re-evaluating internal processes, upgrading systems and assigning more resources to compliance and sustainability teams.

3. Modulated fees (Coming 2026)

One of the most transformative features of EPR is the planned introduction of modulated fees in 2026. Under this system, the fees producers pay will vary depending on how recyclable and environmentally friendly their packaging is.

In short:

• Sustainable packaging = lower fees
• Difficult to recycle or excessive packaging = higher fees

This creates a powerful financial incentive for businesses to redesign packaging with recyclability and sustainability in mind. This is a move that aligns both with compliance and broad ESG goals.

What EPR means for supply chains and producers in the UK

The implementation of EPR represents a fundamental shift in how packaging is managed across the UK. It’s no longer just about what goes into your packaging, now it is about how it’s used, collected and recycled across the supply chain.

Under EPR, any UK organisation that produces, imports, fills, sells or supplies packaged goods may now be classed as a ‘producer’ and subject to new legal obligations.

Each actor in the supply chain may bear responsibility depending on their role in placing packaging on the market. This makes supply chain collaboration essential to ensure that the correct data is captured, reported and costs are appropriately shared.

What businesses must track and report

To comply with EPR, affected businesses are now requited to gather and submit detailed data on their packaging use. This includes:

• Type of packaging e.g. primary, secondary, tertiary
• Material composition
• Weight of packaging in kilograms per material type
• How the packaging is sold
• Nation-specific data
• Recyclability of the packaging

This granular reporting must be submitted annually or biannually, depending on business size and is used to calculate the producer’s EPR fees.

These requirements make it critical for businesses to map out their supply chains, understand who is responsible for which packaging types and ensure accurate data flows across departments and partners. The earlier this structure is put in place, the easier it will be to remain compliant, and to benefit from cost efficiencies and modulated fees in the long run.

How packaging design choices influence EPR compliance

Packaging design is no longer just about protecting the product or looking good on the shelf. Under EPR, design choices can have a direct, measurable impact on your costs and your compliance burden.

• Reducing fees through sustainable design: Businesses that optimise for recyclability, lightweight materials, mono-material design, minimal lamination or coatings can significantly reduce the fees they must pay from 2026 onwards.
• Material selection and recyclability: Avoiding mixed materials or difficult to recycle composites, reducing plastic types, favouring paper, cardboard or recyclable plastics, ensuring adhesives, inks and labels are compatible with recycling will all help.
• Swiftpak’s relevant products and design moves: Swiftpak already offer a number of sustainable packaging products that align with EPR compliance goals.

For a more detailed discussion on Swiftpak’s design moves, read our blog.

Future-proofing your business: The role of packaging partners like Swiftpak

Selecting the right packaging supplier isn’t just a procurement choice anymore, it is a strategic decision with regulatory, financial and environmental implications under EPR.

• Minimising compliance headaches: Working with a packaging partner that has experience, tools and products designed to meet EPR criteria helps reduce internal burden.
• Swiftpak’s support: At Swiftpak, we can advise on product choice, helping you select the right packaging materials that are more sustainable, recyclable or compliant with future modulated fee structures.
• Simplifying future regulatory changes: As EPR is still evolving, a partner that is monitoring regulatory change, updating their product range and helping customers transition smoothly becomes very valuable. Swiftpak’s sustainability focus, and product innovation mean they are positioning themselves for exactly this.

How Swiftpak is adapting to meet EPR demands

Swiftpak is already making moves to meet the new requirements of EPR, not just in terms of compliance but in helping customers adapt too:

1. Product innovations aligned with recyclability and sustainability

Packaging options such as paper void fill, honeycomb paper wrap and sustainable tapes not only reduce environmental impact but also help our customers prepare for modulated fees under EPR by prioritising materials that are easier to recycle.

2. Environmental credentials and sustainability commitments

Swiftpak has B-Corp certification, which demonstrates a wider commitment to environmental, social and governance standards.

3. Supporting tools and guidance

Our sustainability guide helps our customers understand distinctions like biodegradable vs compostable, plastic vs paper etc. We have shared EPR-focused resources and FAQs to help our customers understand what is changing and how to act.

Taking responsibility: What businesses can do now to prepare

With EPR deadlines already in motion and further changes on the horizon, now is the time for packaging producers and suppliers to act. Preparing early not only reduces the risk of non-compliance but also helps your business stay competitive, control costs and meet growing sustainability expectations.

Here are some practical next steps:

1. Audit your packaging
2. Understand your obligations
3. Redesign where possible
4. Implement robust data tracking systems
5. Work closely with an experienced packaging partner

Act early, stay ahead

By acting now, you can reduce costs, avoid last-minute disruption and turn EPR into a competitive advantage. The businesses that thrive under EPR will be those that treat compliance not just as an obligation, but as an opportunity to innovate.

Swiftpak is here to support you at every step, from material selection to reporting guidance. Get in touch to explore how we can help your business prepare for EPR with confidence.