TAX REVENUE DROPS AS RECYCLED PLASTIC USE RISES
In our latest Wrap-Up … Tax revenue drops as recycled plastic use rises. Flexible packaging industry experiencing rapid growth. Waitrose trials recycled material for ready meal trays. Polymer demand is booming. Provisional EPR base fees released. Jury is out on microplastic risks. Bamboo packaging backlash. And more …
For Starters...
Tax revenue drops as recycled plastic use rises
The UK Plastic Packaging Tax (PPT) revenue fell 6% in 2023-2024 compared to the previous year, totalling £268 million. This drop indicates a move towards more recycled content in packaging, with 46% of plastic packaging now containing at least 30% recycled material, up from 40%.
However, concerns persist about the tax's effectiveness and the need for transparency on fund allocation to support recycling infrastructure.
MEANWHILE...
A time and a place for plastic
Amid rising concerns over plastic waste, Food Manufacture has examined whether plastic still has a place in food and drink packaging. While the industry increasingly adopts sustainable alternatives, plastic remains widespread due to its versatility and cost-effectiveness, particularly with materials like PET.
Innovations like laser engraving and RFID labels are emerging as sustainable food labelling options. Additionally, automation offers opportunities to reduce plastic waste and enhance sustainability.
BRAND NEW...
Mars snaps up snacks
Mars has agreed to acquire Kellanova, the maker of Pringles and Pop-Tarts, for £27.7 billion, marking one of the year's largest deals. The acquisition aims to expand Mars' portfolio into salty snacks, crackers, and cereals, enhancing its global reach.
Separately, Mars has acknowledged it will miss key 2025 recycling targets, including those for packaging reusability, plastic reduction, and recycled content.
Pack to the future
Ocado Retail is piloting a reusable packaging scheme for household essentials to reduce plastic waste. The trial features specially designed reusable containers for laundry products and food staples, which are collected, washed, and refilled after use.
Circular move for choc blocks
Cadbury, in collaboration with Amcor and ExxonMobil, is transitioning to circular plastic packaging for its Dairy Milk Chocolate blocks. Using ExxonMobil’s Exxtend technology, Cadbury will incorporate 1000 metric tons of certified circular BOPP, reducing CO2 emissions and reliance on virgin materials.
This chemical recycling process converts plastic waste into raw materials, lowering environmental impact.
Finger-lickin’ exit plan
KFC has committed to replacing all consumer plastic packaging with recoverable or reusable alternatives by 2025. This move aligns with similar efforts by KFC’s parent company, Yum Brands, which aims to eliminate plastic packaging across all its restaurants by 2025.
Acquisition takes the biscuit
The UK arm of Spain’s Cerealto Siro Foods has acquired Hill Biscuits from a private equity firm, with financial details undisclosed. This acquisition follows Hill Biscuits' significant revenue growth, doubling sales to over £40m in 2024.
Scan and see accessible labels
SMA Nutrition is adding NaviLens codes to its packaging, enabling visually impaired customers to access product information independently via smartphone scans.
SHOP TALK...
Tray chic packaging trial
Waitrose is partnering with WRAP, Pilgrim’s Europe, and Faerch to trial a process using recycled materials from British household recycling for its own-brand ready meal trays.
This initiative seeks to reduce reliance on virgin materials and utilise high-quality food-grade PET sourced from the UK. The new trays will debut in Waitrose’s curry range before expanding to other products.
Extending shelf life at a squeeze
Iceland Foods is introducing vacuum packaging for its beef and pork mince to extend shelf life by up to 50% and cut annual plastic use by 35 tonnes.
Cleaning up with depackaging
Walmart is partnering with Denali in the US to introduce depackaging services at over 1000 locations, aiming to improve food waste recycling. This technology separates food from packaging, increasing organic content recovery by over 60% and reducing compactor waste by 12%.
Plastic reduction is no pulp fiction
Aldi is testing the removal of pulp trays and punnets from certain fruit and vegetable products in select stores. This could reduce over 370 tonnes of plastic and packaging annually nationwide.
Aldi’s move coincides with Ireland’s Environmental Protection Agency (EPA) suggesting the elimination of non-essential packaging for fruit and vegetables in favour of loose produce.
RECYCLING NEWS...
BBQ tray surge hots up
Research indicates that over 200 million plastic BBQ meat trays will flood the UK recycling system during summer.
Industry Intelligence found that a quarter of people need clarification about recycling rules and labels, leading to improper disposal and potential contamination of the recycling process, adding strain to the system.
Loopy approach to new project
The Institute for Plastics Processing in Germany is launching “LOOPCYCLING,” an industrial research project focused on improving LDPE recyclate quality in mechanical recycling.
The project aims to enhance recyclate for contact-sensitive applications like food packaging in preparation for upcoming regulations. It seeks to optimise the recycling process to boost recyclate quality significantly.
Polymers demand is booming
Demand for recycled polymers is growing in the US and UK, driven by regulations, particularly in the food and beverage sector. Europe leads in post-consumer recycled content use but must triple production by 2030, focusing on polypropylene, polyethylene, and recycled PET.
INDUSTRY SNIPPETS...
New date for DRS and EPR fees
The UK government has confirmed a new launch date for the Deposit Return Scheme (DRS) following previous delays. The DRS, aimed at increasing recycling rates for beverage containers, is now set for 1 October 2025.
Meanwhile, waste and recycling industry leaders are urging the UK government to advance its circular economy agenda, with key priorities including implementing Extended Producer Responsibility and enhancing the Plastics Packaging Tax.
The government has also released provisional base fees for extended producer responsibility (EPR) in 2025/26. These fees, charged to packaging producers, are based on the previous year's data but are still being determined due to uncertainties in waste management costs.
Flexible growth with a green twist
The flexible packaging industry is experiencing rapid growth due to its cost-effectiveness, lightweight nature, and ability to extend product shelf life.
However, environmental concerns, particularly regarding recyclability, are intensifying. The industry is focusing on innovations like mono-material designs and advanced recycling methods.
Volatility in the market
European plastic prices were mixed last month. Polyethylene faced potential price increases, while polypropylene and PVC saw slight rises due to anti-dumping duties and production cuts. PET demand remained weak, leading to minimal price changes. Overall, market conditions were volatile, driven by supply chain issues and fluctuating demand.
Papering over plastic
A France-based start-up is developing paper packaging with plastic-like properties using AI to create coatings. Papkot is targeting the food industry, offering sustainable, recyclable, and biodegradable coatings made from silica and cellulose.
Point and click product info
Food manufacturing automation firm OAL has introduced new inline camera technology to verify QR and 2D codes on packaging. Consumers can scan packages with smartphones to access detailed product information, including best-before dates, allergens, and batch data.
First to close the loop
Klöckner Pentaplast (kp) has become the first food packaging business to receive RecyClass Traceability Certification with a closed-loop module for its recycled PET (rPET).
New polymers boost performance
TUS has launched new industrial-grade sustainable polymer solutions to enhance environmental performance and sustainability in packaging.
SUSTAINABLE TOPICS...
Sights set on single target
The US government has released a strategic plan to combat plastic pollution, focusing on reducing plastic's lifecycle impacts. The plan aims to eliminate single-use plastic in federal food service by 2027 and all federal operations by 2045.
Jury is out on microplastics
The US Food and Drug Administration (FDA) has concluded that current scientific evidence does not show a health risk from microplastics in food and packaging. Although microplastics are found in the food supply, the FDA has found insufficient data to determine if they migrate from packaging.
Sticky solution for packaging
Trinseo, a speciality materials solutions provider, has introduced a new dry lamination adhesive to enhance sustainability in flexible food packaging. The adhesive is suitable for various packaging materials, improving recyclability and reducing environmental impact.
War on waste export cheats
The UK’s Environment Agency has increased efforts to combat waste export fraud, intensifying inspections and enforcement actions.
The EA is targeting fraudsters who falsely claim Packaging Export Recovery Notes (PERNs) for non-existent waste, non-UK sourced waste, or waste already claimed.
IN TRAYS …
Magnetic sealing system
Mondini has introduced the Trave Sinfonia®, an advanced tray sealing system featuring magnetic rail technology. This innovative system offers precise and adaptable tray handling, enhancing efficiency and simplifying operations.
Celebrating breakthrough award
Proseal has won the 2024 AgTech Breakthrough Award for FoodTech Equipment of the Year for its Case DeStacker (CDS). The CDS automates de-stacking to boost efficiency and safety in case packing. It’s compatible with existing Proseal machinery and helps reduce manual handling and downtime.
Equipment is as good as new
Packaging Automation is offering high-quality second-hand machines, including tray sealers and pot fillers, at competitive prices. The company provides expertly refurbished equipment that delivers advanced technology without the high cost.
ALTERNATIVELY…
Bamboo packaging backlash
UK food standards agencies are urging a ban on bamboo-based plastic packaging, citing concerns over its environmental impact and safety. Despite being marketed as eco-friendly, these materials may not meet the necessary standards for compostability and can pose potential risks in food packaging.
KM NEWS…
Martin juggles work and play
He can juggle with fire, ride a unicycle, and balance a chair on his chin! We're pleased to introduce you to Martin Penney, our new Customer Operations Specialist, with over 15 years of experience in customer service, retail management, and order logistics.
We’ve got a big date!
Look out for our exciting milestone coming soon.
DATES FOR YOUR DIARY … are there any BPF seminars of relevance?
From the KM team … protecting, presenting, and preserving your products.