Are You Ready for the Plastic Packaging Tax?

Read on for an explanation of the April 2022 plastic packaging tax and the solutions that Aegg is offering to its food manufacturer and retailer customers.

What is the Plastic Packaging Tax?

From April 2022, the UK Government is bringing in the Plastic Packaging Tax, where £200 tax per tonne will apply to plastic packaging produced in, or imported into the UK, that does not contain at least 30% recycled plastic. The aim is to drive increased use of recycled content.

Therefore, from April 2022, any packaging that does not contain at least 30% recycled plastic will incur tax levied £200 tax per tonne. As well as rising inflation and supply costs, these additional plastics tax costs will therefore affect the food and drinks industry and are likely to be passed on to the consumer.

To read what the tax applies to, read this legal plastic packaging tax guide.


Plastics tax blog image (002)For more details about the plastics tax, read our plastic packaging tax interview with the British Plastics Federation (BPF).




What is Good about the Tax?

Everyone wants to see more recycling of plastic, less plastic waste created and to generate greater demand for recycled plastic. This is the aim of the Plastics Tax.

In theory, the plastics tax will help to drive less plastic going to landfill or incineration by recycling plastics instead. The recycled material can then be used to produce new plastic packaging products.

Life cycle of plastic bottles

What is Not So Good About the Tax (for Food Packaging)?

Currently, the UK kerbside collection infrastructure is inconsistent; some councils collect certain types of plastic to be recycled, whilst others do not. Certain plastics such as PET which is widely used can be easily cleaned and reproposed back into food grade containers whilst other grades of material like PP need to be cleaned and then reprocessed as one of the building blocks in the manufacture of PP. It is claimed that in the UK over 210,000 tons of PP is used for food packaging but currently the recycling plants can only produce circa 10-15000 tons. The technology is catching up with the availability and price often hard to justify.


What is the Difference Between Recyclable Packaging vs Recycled Content?

There is a big difference! Recyclable packaging means that it can be recycled; the recycled content can then be reused to make more plastic products. However, even if the product is produced in recyclable material (such as PET or PP), if it doesn’t contain recycled content of 30% or more, the Plastic Packaging Tax (PPT) will still be applied.



The Solutions We Are Offering Our Food Manufacturer and Retailer Customers


1. Plastic Packaging Tax Exempt Plastic Pots

Our heritage pot and tulip pot is available in rPET, which includes 30% recycled material, making the pots PPT-exempt. This not only means that the £200 per tonne tax won’t be applied on the pot, but the pots are more environmentally-friendly by using more recycled material in the products. rPET can handle temperatures up to 55C and down to -20C, so the pots can be used for ambient, chiller and even frozen foods.


Tulip pot

We are also working on further concepts, which will all be produced in rPET. Please get in touch if you are interested in finding out more.

rPet concepts


2. PPT-Exempt Lids

We work closely with our supplier to provide a range of lids that are PPT-exempt, containing up to 50% recycled content. We always recommend the best lid options to fit our packaging.

Lid Image Board Aegg image of Termoplast lids


3. Light Weighting Products for Microwave-Safe Pots

At the time of writing, recycled PP (rPP) material is not widely available and carries a high premium, making rPP plastic packaging more costly to produce. So, we have come up with an alternative solution. We are taking up to 30% of the weight out of some of our PP pots (including our tumbler), which reduces both the cost and tax liability of the packaging without compromising the functionality.



4. Providing Alternative Materials

As Aegg supplies both plastic and glass packaging, we work with our clients to provide the best solution for them. Whether it is working out the most cost-effective off-the-shelf products, offering the most environmentally friendly solution, or creating bespoke packaging, we offer a turnkey service from design, production, warehousing to delivery. If you would like to discuss your food or drinks packaging options with us, please get in touch.

Aegg provides glass and plastic packaging

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