From the 1st April 2024, the Plastic Packaging Tax increased from £210.82 per tonne to £217.85 per tonne. The tax targets non-recyclable materials, aims to reduce environmental waste and promotes the use of eco-friendly packaging. While the deadline for the tax increase has passed, instead of paying more and absorbing the cost, it is an opportunity for B2B buyers of wholesale packaging to adjust their purchasing strategies accordingly.
The tax applies to all virgin plastic packaging products imported or used in the UK. The scope of PPT applies to primary, secondary and tertiary packaging, so everything from plastic bottles to shrink wrap is included in the legislation.
Invopak, a leading packaging supplier, explores how B2B buyers can turn this tax change into an opportunity to embrace eco-friendly packaging, enhance their sustainability goals, and gain a competitive edge.
Key Considerations for B2B Buyers
- Increased Costs: Due to the tax increase, non-recyclable packaging is more expensive, so businesses should look for alternative, more sustainable packaging options to manage these additional costs.
- Sustainability Goals: The tax aims to persuade businesses to use eco-friendly packaging. It encourages business owners to re-think their stance on sustainability to ensure that buyers are seeking packaging that is biodegradable, or at the very least, considering packaging that is made from recycled materials that can be recycled.
- Supplier Transparency: It’s crucial to work closely with suppliers who can provide sustainable packaging solutions. This goes beyond clear communication and building strong partnerships with suppliers regarding supplying compliant materials. In addition, it’s essential that suppliers are transparent about their footprint and can provide specific details about the origins of the packaging from start (including design) to finish.
- Compliance and Certification: Ensuring that packaging materials meet the new standards will require careful checking. Buyers must confirm that their suppliers’ products are certified as recyclable or biodegradable, which may involve additional paperwork. Hazardous goods, for example, must comply with regulations and use UN Certified Packaging to ensure high-risk goods are transported safely.
- Innovation and Adaptation: The new tax aims to drive innovation in the packaging industry. Buyers should stay informed about new technologies and materials that offer sustainable solutions, giving them a competitive edge. B2B buyers should consider options like metal containers if looking to avoid the tax – they are highly recyclable and less likely to end up as landfill waste.
- Customer Perception: Shifting to sustainable packaging is not just about compliance but also about responding to consumer demand for environmentally responsible products. Many consumers are now choosing brands that are transparent and care about their impact on people and the planet. Businesses should respond to these preferences before they turn into demands by adopting greener packaging to improve brand image and attract eco-conscious customers.
- With the increased cost of the packaging tax, B2B buyers face the dual challenge of managing costs while meeting sustainability standards. The transition may require significant adjustments, but it also allows businesses to demonstrate their commitment to environmental responsibility – which will be worthwhile in the long run.
- “Customers are increasingly aware of the environmental impact of packaging, We’ve seen an increase in demand for recycled plastic and metal packaging, as businesses continue to adopt more sustainable practices” – Scott Sandilands, CRO, Invopak
- B2B buyers who are serious about wholesale packaging, should see the Plastic Packaging Tax as an opportunity to review cost management, sustainability policies, supplier collaboration, compliance, innovation, and customer perception. If businesses can navigate these changes successfully and emerge stronger in a more eco-conscious marketplace, that will benefit everyone
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