New data from the Department for Environment, Food & Rural Affairs (Defra) reveals that nine out of ten packaging producers are utilising non-sustainable materials. Following BagKraft’s Freedom of Information request, Defra’s data shows 89% of the 11,701 obligated packaging producers in the UK are still supplying non-recyclable, hard-to-recycle, or mixed-rating packaging to the market.

The data demonstrates the uphill battle for absolute sustainability, as 14% of producers are supplying exclusively ‘Red’ rated packaging. 1 in 7 businesses remain entirely reliant on materials classified as difficult or problematic to recycle, while a further 1% of producers supply strictly ‘Amber’ rated packaging, which carries significant recycling challenges.

75% of producers are supplying a mix of Red, Amber, and Green-rated packaging, meaning most businesses haven’t fully transitioned away from said materials. Only 10% have successfully transitioned to supplying strictly ‘Green’ packaging across their entire operations.

These findings highlight the gap between corporate sustainability goals and the reality of UK supply chains. pEPR regulations are designed to penalise difficult-to-recycle materials, meaning the businesses that rely on Red and Amber-rated packaging face high operational costs alongside reputational risks.

“This data from Defra is a stark reminder that while the conversation around sustainability is everywhere, the physical transition is lagging,” said Jon Marling, Managing Director of BagKraft. “Seeing that only 10% of producers are operating entirely in the 'Green' zone is a wake-up call. Moving away from 'Red' and mixed-material packaging isn't just an environmental obligation anymore—with pEPR fees escalating, it is a financial necessity.”