BagKraft Warns Brands: Ditch Red and Amber Packaging or Face Rising Costs and Reputational Risks

July 13, 2026
BagKraft Warns Brands: Ditch Red and Amber Packaging or Face Rising Costs and Reputational Risks
  • BagKraft warns that using red or amber packaging imposes substantial costs and reputational risks on brands, urging a switch to easily recyclable materials to avoid penalties and meet consumer demand.

  • UK Defra data obtained via FOI reveals 89% of 11,701 obligated producers still supply packaging not easily recyclable, underscoring a significant sustainability gap.

  • A FOI release shows among 11,701 producers, 14% supply exclusively red packaging and 1% exclusively amber, signaling substantial recycling challenges.

  • PackUK and Defra published an updated Recyclability Assessment Methodology (RAM) for 2027, assigning red, amber, or green ratings that influence modulated pEPR fees.

  • RAM outcomes affect packaging ratings and the associated pEPR fees, guiding producers toward more sustainable choices.

  • pEPR regulations are set to penalize hard-to-recycle materials through higher fees, raising operational costs and increasing reputational risk for those relying on red and amber packaging.

  • Retailers are urged to audit their product portfolios to identify red or mixed-material packaging and switch to easily recyclable alternatives to avoid penalties and align with regulatory requirements.

  • (Note: A lengthy IndexBox report outline appears as a publisher’s template and does not affect the core article material.)

  • Related developments include Switzerland planning an EPR ordinance with a 2030 start date and a study urging the EU to address performance gaps in national packaging EPR schemes through a Circular Economy Act.

  • Under the UK packaging EPR scheme, producers pay fees to cover the cost of collecting and recycling household packaging waste, shifting responsibility from councils to producers and incentivizing recyclability.

  • Findings highlight a gap between corporate sustainability goals and actual UK supply-chain practices, with penalties looming under pEPR schemes for difficult-to-recycle materials.

  • Data show that 75% of producers use a mix of red, amber, and green packaging, while only 10% supply exclusively green packaging, 14% rely on red, and 1% rely on amber, indicating broad material diversity and ongoing challenges.

Summary based on 3 sources


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