HMRC data show packaging meeting the UK’s 30% recycled-content threshold remained 17% above 2022–23 levels in 2025–26, while taxable plastic packaging fell by 21%.
The amount of plastic packaging declared to HM Revenue and Customs (HMRC) as containing at least 30% recycled plastic was 17% higher in 2025–26 than in the first year of the UK’s Plastic Packaging Tax (PPT).
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HMRC recorded 1.506 million tonnes of packaging meeting the recycled-content threshold in 2025–26, compared with 1.290 million tonnes in 2022–23.
Over the same period, taxable plastic packaging fell by 21%, from 1.399 million tonnes to 1.107 million tonnes.
Taxable packaging therefore accounted for 37% of all plastic packaging declared to HMRC in 2025–26, down from 41% in the first year of PPT.
The figures show a change in the composition of plastic packaging declared under the UK tax system. They do not, however, establish that PPT itself caused the shift.
Recycled-content packaging remains above 2022 level
Introduced on 1 April 2022, PPT applies to finished plastic packaging components manufactured in or imported into the UK that contain less than 30% recycled plastic.
HMRC’s four-year data show packaging declared as containing at least 30% recycled plastic rising from 1.290 million tonnes in 2022–23 to 1.400 million tonnes in 2023–24.
The volume reached 1.569 million tonnes in 2024–25 before falling by 4% to 1.506 million tonnes in 2025–26.
Despite the latest decline, the figure remained 216,000 tonnes above the level recorded when PPT began.
Packaging meeting the 30% recycled-content threshold accounted for approximately 51% of the 2.970 million tonnes of plastic packaging declared to HMRC in 2025–26.
The figures therefore show that the volume meeting the threshold remains significantly above its first-year level, rather than increasing every year.
Taxable packaging falls faster than overall tonnage
Total plastic packaging declared to HMRC has also declined since PPT was introduced, but at a slower rate than taxable packaging.
Declared volumes fell by about 13%, from 3.433 million tonnes in 2022–23 to 2.970 million tonnes in 2025–26.
Taxable packaging fell by 21% over the same period. Its share of total declared tonnage consequently dropped by four percentage points, from 41% to 37%.
HMRC describes the data as showing a downward trend in taxable plastic packaging since PPT was introduced. Relieved and exempt packaging has fluctuated but remained relatively stable overall.
The statistics are based on packaging reported through PPT returns. They do not isolate the effect of the tax from other factors that may affect packaging production, imports and material choices.
PPT revenue falls to £250m
PPT generated an estimated £250m in accrued revenue in 2025–26, down 4% from £261m in the previous financial year, according to HMRC.
The decline came despite an increase in the tax rate from £217.85 to £223.69 per tonne for 2025–26.
The rate has risen each year since PPT was introduced at £200 per tonne in 2022–23. It increased again to £228.82 per tonne from 1 April 2026.
The latest figures therefore show PPT revenue falling as taxable tonnage declined, despite successive increases in the rate charged per tonne.
What it means for packaging businesses
For packaging manufacturers and importers, the figures reinforce the importance of the 30% recycled-content threshold under the UK’s Plastic Packaging Tax.
Businesses manufacturing or importing 10 tonnes or more of finished plastic packaging components within the relevant registration periods must register for PPT, subject to the tax rules. Registration and reporting requirements can still apply where packaging contains at least 30% recycled plastic and is not chargeable to the tax.
Businesses claiming that packaging meets the threshold must also retain evidence supporting its recycled-plastic content.
Four years after PPT was introduced, HMRC’s figures show a materially different mix of packaging declared through the tax system. Overall declared tonnage is down 13%, taxable tonnage is down 21%, while packaging meeting the recycled-content threshold remains 17% above its first-year level.
For manufacturers, converters and importers, the composition of declared packaging provides a useful benchmark alongside overall tonnage and PPT revenue when assessing changes reported under the UK’s plastic packaging tax system.
