BagKraft Warns Brands: Ditch Red and Amber Packaging or Face Rising Costs and Reputational Risks
July 13, 2026
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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Sources

Packaging News • Jul 13, 2026
Data shows many packaging producers still struggling with recyclability
edie • Jul 13, 2026
Defra: 9 in 10 packaging producers use unsustainable materials
IndexBox Inc. • Jul 13, 2026
89% of UK Packaging Producers Still Use Non-Recyclable Materials, Defra Data Shows