Extended Producer Responsibility (EPR) legislation has been on the horizon in the UK for a while.  Recently, the UK Government pushed out the date for mandatory reporting to 31st May 2024 and, put a pause on the implementation of fees until 2025.

If your business is eligible for EPR reporting and fees, you should already be taking action to reduce the impact on your business.

In this blog, we will cover a practical guide to Extended Producer Responsibility, including what it is, why it’s being introduced and if it will apply to your business.

What is Extended Producer Responsibility?

Extended Producer Responsibility (EPR) is new legislation being introduced in the UK. At a simplistic level, the regulation will see businesses that put packaging on to the UK market be taxed for creating packaging waste.

Funds raised from the tax will switch the obligation of community waste disposal and recycling costs from local councils to the businesses that supply packaging into UK households.

Who is the scheme administrator for EPR?

Extended Producer Responsibility falls under the remit of Defra – the Department for Rural Affairs.

In January 2024, Defra announced that Dr Margaret Bates has been appointed to the role of Head for the UK Extended Producer Responsibility for Packaging Scheme Administrator. 

Dr Bates is the Managing Director of OPRL (On-Pack Recycling Label) which provides consumers with simple, consistent recycling information on brand packaging to increase recycling awareness. She will take up the role as a secondment for up to two years.

In this role, Dr Bates will be responsible for the implementation and readiness of the Scheme Administrator. 

Why EPR is being introduced?

EPR is being introduced to support the Government’s 25 year environment plan, which seeks to build a greener future.

The strategy includes a package of new legislation to help grow the recycling infrastructure and provide consistency throughout the UK on the types of materials that can be recycled locally.  It’s thought that the cost recovered from the taxation will be in the region of £2bn.

Does EPR apply to my business?

The Extended Producer Responsibility legislation is aimed at suppliers of packaging. At face value, you might think: “That doesn’t apply to me, I’m not a packaging company”!

However, the legislation applies to any UK business which imports or supplies packaging into the UK market, which could end up in household waste.  So, the tax can apply to online retailers, distributors, manufacturers and even packaging companies like us!

Eligibility for EPR

You will need to take action under EPR legislation if the following apply:

• you’re an individual business, subsidiary or group (but not a charity)
• you have an annual turnover of £1 million or more (based on your most recent annual accounts)
• you were responsible for more than 25 tonnes of packaging in 2022
• you carry out any of the packaging activities defined by the Government

How the legislation will be applied will depend on if you’re classed as a small business or large business.

These are defined by the UK Government as:

Small business – you have an annual turnover of between £1 million and £2 million. You’re responsible for putting onto the market (or importing) more than 25 tonnes of empty packaging or packaged goods in the UK, or your annual turnover is over £1 million. You’re putting or importing between 25 tonnes and 50 tonnes of empty packaging or packaged goods into the UK.

Large business – you have an annual turnover of £2 million or more, and you’re responsible for putting onto the market (or importing) more than 50 tonnes of empty packaging or packaged goods in the UK.

For both classifications, your turnover should be taken from your most recent company accounts. Total packaging weight is calculated on your usage in a calendar year – January to December – of packaging supplied through the UK market, including anything imported and then discarded in the UK.

How EPR applies to small businesses and large businesses 

If your company falls into the small business bracket, you will not need to pay a tax under the regulations. You WILL need to collect your packaging waste data for 2023 but will not need to report it. You WILL need to collect data for 2025 and be ready to report it in 2025.

The UK Government requires that you are already recording data about the empty packaging and packaged goods you supply to UK markets (or import into the UK).

You will be obliged to create an account for your organisation from January 2024. Small businesses will also need to pay a fee to the environmental regulator from 2025.

If you’re classed as a large business, you should also already be recording your packaging data and reporting it every six months. Plus, you should also expect to pay waste management fees and further charges from 2025.

What are EPR fees expected to be?

Modulated fees for large businesses will be paid on a cost per tonne basis, depending on the type of packaging material used.

Whilst these costs have not yet been confirmed, a leading compliance organisation have estimated that these are likely to be in the region of:

• Paper and Board – £221 per tonne
• Plastic – £525 per tonne

This means that if your packaging use of 50 tonnes was split equally between paper and plastic, you could be charged around £18,500 in EPR taxation.

What do I need to do to comply with EPR?

The steps you need to take to comply with EPR include:

1. Checking if you need to report data, including national data
2. Collecting your packaging data
3. Creating an account for your company
4. Reporting your packaging data based on the relevant deadlines
5. Paying applicable fees from 2025

You may also want to consider working with a third-party compliance partner, who can help you manage your EPR processes.

How can I prepare for the impact of EPR?

To prepare for the impact of EPR, there are some key actions you can take. Here are some tips to get you started:

• Collect detailed information about your packaging materials and their use – data will be an important part of complying with Extended Producer Responsibility. The more detailed information the better.
• Review packaging designs to minimise packaging waste – as EPR will be applied by material weight, reviewing how much packaging you use will be key to mitigating the impact of EPR and the costs associate with it. Reconsidering your packaging designs can help reduce material use and therefore reduce the amount of material you use.
• Consider switching to materials that will attract lower EPR fees – DEFRA is expected to announce modulated fees based on the type of packaging material being used. For example, plastics are expected to be taxed more stringently than paper. Therefore, now is a good time to consideration the materials you’re using for packaging. Could you swap to materials that attract lower fees while maintaining the performance of your packaging?

How Macfarlane Packaging can help with EPR management

EPR is a complex topic but in its simplest form, it’s around driving behaviour in eligible businesses to reduce the amount of packaging used and, ensure that the material used is either recyclable or reusable.

At Macfarlane Packaging we have a wide range of tools to help you prepare for EPR. These include services designed to reduce material usage, therefore, reducing future EPR costs:

• An online e-trading system for easy reporting – we can provide one click reporting on packaging usage, by product, material type and weight. Simplifying the reporting process for our customers.
• Exclusive packaging optimisation software – our industry-first tool, the Packaging Optimiser, can show you what your packaging costs you and the environment – showing financial and CO2 savings of revised packaging solutions.
• State-of-the-art Innovation Labs for developing sustainable solutions  – we have two state-of-the-art facilities equipped with packaging design software, sampling machinery and testing equipment to create leading sustainable packaging solutions.
• Extensive eco-friendly packaging range – we have a huge range of packaging materials that are recyclable and contain recycled content to support sustainability goals.

If you are interested in optimising your packaging and reducing the weight of your packaging use, contact us today.

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To celebrate this year’s International Women’s Day, we’re breaking away from our usual packaging content to speak to leaders around our business about inspiring inclusion.

Aleen Gulvanessian, Chair of Macfarlane Group

Aleen is Macfarlane Group’s current chair, having historically served as one of the Group’s non-executive directors. Aleen has also practiced law for over 40 years, working as a corporate lawyer and partner at Eversheds Sutherland.

What would your advice be for women looking to overcome barriers in business?

Firstly, barriers are there to be broken. Secondly, I think no one should assume there are barriers. Even if there have been barriers in the past, my view is that they no longer exist in the way they used to as the world is a very different place for women now. Women have more opportunities than ever at the moment and should “seize the day” while it lasts and just demonstrate how good they are! If they do that there should be no barriers.

How can businesses inspire inclusion and advancement of women?

Businesses can help to build the confidence of women. I think some people do suffer from “imposter syndrome” and if they’re in a minority, they may need more support. I’m going to generalise (but am also speaking personally) when I say many women tend to be modest and don’t like singing their own praises. We need encouragement in this area and to make our own ambitions and aspirations known to our line managers.

Can you tell us a story about a person that has inspired inclusion in your life or career?

I think I was lucky because, whilst I worked in a very male dominated area as a corporate lawyer and was the first female corporate partner in my firm, the men I worked with and for didn’t treat me differently and were entirely inclusive. They treated me on my merits and that’s all anyone can ask for. Unfortunately, there wasn’t a woman in my area of work that I could look up to for inspiration, but my male bosses were great at being inclusive – at a time when it wasn’t even fashionable to be inclusive – and they promoted people on merits.

Suzanne Double – Group Regional Director (South East) for Macfarlane Packaging

Having worked in packaging and logistics for almost 30 years, Suzanne originally joined the business as a commercial manager and has progressed through to our leadership team. Suzanne is now one of Macfarlane’s Group Regional Directors.

How do you think Macfarlane Packaging inspires inclusion for women?

This business doesn’t differentiate between women and men in any way. Women are equals and it’s clear that if an individual is talented and has the skills we need, we support the recruitment, retention and development of that talent regardless of gender. That in itself is inspiring.

We mentor well, provide access for people to find the right path for them again based on their talent. We have a key number of women in leadership roles, which does and will inspire future leaders in our business. We have also created a very safe and respectful workplace.

What would your advice be for women looking to overcome barriers in business?

• To never give up, always look for support
• Use the resources around you – tap into all training and mentorship available
• Build relationships and networks to support
• Challenge the status quo
• Don’t be afraid to be bold and be heard

Ruth Cook – Managing Director, GWP Group, part of Macfarlane Group’s manufacturing division

Ruth is one of the founding directors of GWP Group, having worked for the company since its inception as Great Western Packaging in August 1990.

How do you think Macfarlane Packaging inspires inclusion for women?

Macfarlane is very progressive in terms of inclusion for women. From the Board – with Aleen as Chair – through key personnel and all staff, there is a strong female presence. Being inclusive is clearly a key objective within the business, and this is visible – it has not just been talked about but is apparent in day-to-day behaviours.

Why do we need more women in the packaging industry?

I have been in the packaging industry for more than 30 years, and the female presence has changed enormously in this time. As little as 10 years ago, if I attended an industry event, I would be lucky to see more than one or two other females there. This has now changed to approximately twenty per cent of females in attendance. It’s an improvement but still way short of a 50/50 approach.

There are huge opportunities for women to positively influence the packaging industry, and I believe the industry recognises this and is trying to address the imbalance. There is an excellent opportunity for any female wanting to make a difference.

What is important when recruiting, retaining and developing female talent in business?

It’s vital to show that the business offers career opportunities and progression, and clearly demonstrate that these opportunities are open to both genders. Whilst it should not be assumed that females need more flexibility in the workplace, we live in a world where this is, in many instances, still the case. However, a business that provides flexibility usually sees the rewards of strong loyalty and retention of staff moving forward. 

Laurel Granville, Marketing Director for Macfarlane Group

Laurel is Macfarlane’s Marketing Director. She has over 20 years’ experience in marketing and branding leadership, having worked many of those in the packaging industry.

How do you think Macfarlane Packaging inspires inclusion for women?

I believe Macfarlane Packaging has created an environment where everyone can feel confident in their abilities and feel valued. Macfarlane has a good representation of women across leadership roles, including our board, which is 33% female. For me, this sets an example that women can have the same opportunities as men to progress in leadership roles in our business.

Can you tell us a story about a person that has inspired inclusion in in your life or career?

I have been fortunate to have had support and encouragement from both male and female leaders throughout my career and have not personally experienced gender as a barrier. However, my views may have been shaped by working in organisations where I could see women in leadership roles. These examples of strong, positive women leaders, particularly in the early years of my career, have opened my mind to career possibilities and a belief that anything is possible with perseverance.

What would your advice be for women looking to overcome barriers in business?

My advice to women looking to overcome barriers would be to continue to believe in yourself and ignore any perceived barriers that you believe exist. Consistently demonstrate your skills and abilities, forge relationships with leaders and mentors, male or female, and be relentless about achieving your goals.

About Macfarlane and Inclusivity

Macfarlane Packaging is a committed equal opportunities employer.

• We have a Diversity, Equity and Inclusion (DEI) strategy that forms part of our Environmental, Social and Governance agenda. This includes the continual rollout of DEI training, inclusive policies, colleague feedback forums and targeted recruitment.
• Macfarlane offers a wide range of careers advancement opportunities, as well as flexible and hybrid working opportunities to ensure we’re fostering a progressive and inclusive environment.

If you’re interested in a career in packaging, check out our current vacancies.

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With the UK Government bringing in sweeping reforms around packaging waste, it’s a good time to get your head around what packaging related regulations you should know about in 2024.

In this article, we’ll review the key pieces of packaging legislation that might impact you in 2024, if you’re a UK-based business.

What is packaging legislation?

Packaging legislation is any legal requirement or regulation that involves packaging materials. The legislation may only apply to certain businesses, depending on different criteria, such as how much packaging they produce or handle.

What packaging legislation should you be aware of in 2024?

In the UK there are four key pieces of packaging legislation to be aware of: Packaging Waste Regulations, Extended Producer Responsibilities, the UK Plastic Packaging Tax and the EU Corporate Sustainability Reporting Directive. Let’s take a look at each one…

Packaging Waste Regulations

If your business produces or uses packaging, or sells packaged goods, you may be classed as an “obligated producer” under packaging waste regulations. The regulations aim to help businesses to reduce the amount of packaging they produce, reduce how much of their packaging goes to landfill and increase the amount of their packaging waste that is recycled.

You’ll be classed as an obligated producer if:

• handled 50 tonnes of packaging materials or packaging in the previous calendar year
• have a turnover of more than £2 million a year (based on the last financial year’s accounts)

In this instance, you will need to be registered by a packaging producer by 7 April every year, meet any required recycling obligation and obtain evidence of your compliance. Your certificate of compliance then needs to be submitted by 31 January the following year. Click here to learn more.

Extended Producer Responsibilities

In addition to the standard packaging waste regulations, the UK Government has introduced Extended Producer Responsibilities (EPR). EPR legislation is a reform of historic packaging waste regulations that looks to shift the cost of household packaging waste management to producers.

Obligated businesses will have to provide even more granular information about the packaging they’re putting on to the UK market. They’ll also need to pay fees, depending on their packaging use and if the packaging is likely to end up in household waste. Fees are set to be modulated, based on the packaging material. So, for example, plastic is expected to be taxed more than paper. Even within the category of “plastics” different types of plastics will have different fees, depending on how easy they are to recycle.

To be considered in scope, the following needs to apply:

• you’ll be an individual business, subsidiary or group (but not a charity)
• you’ll have an annual turnover of £1 million or more (based on your most recent annual accounts)
• you’ll have been responsible for more than 25 tonnes of packaging in 2022
• you’ll carry out any packaging activities as defined by the Government

Different reporting and fees will then depend on if you’re a large business or a small business. Large businesses will have enhanced reporting and fee paying obligations, including paying waste management fees, scheme administrator costs, and charges to the environmental regulator.

Large businesses are defined as organisations over £2m in annual turnover and who are putting more than 50 tonnes of packaging on the UK market. Click here for more information.

UK Plastic Packaging Tax

Introduced in 2022, the UK Plastic Packaging Tax applies a levy to plastic packaging materials that contain less than 30% recycled content. Currently, the fee is £210.82 per tonne. From 1st April 2024, the tax will be applied at £217.85 per tonne. (You can learn more about the regulations here.)   

When you consider that modulated EPR fees are expected to be higher for plastic materials on top of the Plastic Packaging Tax, the Government is really incentivising businesses to high recycled content materials, more recyclable plastics or even ditch it in favour of paper-based packaging materials.

EU Corporate Sustainability Reporting Directive

‍The EU’s new Corporate Social Responsibility Reporting Directive (CSRD) requires at least 50,000 large companies within the EU, to create a report on their social and environmental impact actions from 2024 onwards.

While you might think “wait – the UK isn’t part of the EU anymore” the legislation could apply to UK businesses with strongholds in other European countries. They will apply in two scenarios:

• Listed Securities – if your company has securities listed on an EU regulated market, regardless of its location, it will fall under the scope of the CSRD reporting obligations.
• EU Net Turnover – if your company has a net turnover in the EU exceeding €150 million over the last two consecutive financial years, it will be subject to the CSRD if your company meets either of the following criteria:

1. You have an EU subsidiary with securities listed on an EU regulated market or qualifies as a large undertaking.
2. Your company operates an EU branch that has generated a net turnover exceeding €40 million in the previous financial year.

If these scenarios apply to your business, you will need to comply with the CRSD.

So, what does it mean for packaging? In essence, packaging strategies may form part of your sustainability reporting and have a direct influence on your environmental impact. You may need to consider your packaging waste data, the recyclability of your packaging and how packaging could affect your carbon footprint. Plus, you will have an obligation to report on this information. Find out more here.

Support mitigating the impact of packaging legislation in 2024

At Macfarlane Packaging, we’re geared up to help you mitigate the impact packaging legislation can have on your business:

• Sustainable packaging products – we have an extensive range of recycled content and recyclable packaging products. For example, our stock 0201 double wall cardboard boxes are made form 100% recycled content! We can also offer FSC® certified products too.
• Easy  “click-of-a-button” reporting – our e-trading system can help you produce packaging weight data in seconds, helping you cut down admin time associated with packaging legislation and waste reporting.
• Packaging optimisation – our experts can help you create more sustainable, right-size packaging that’s lighter. This can help you reduce your overall pack weight and remove CO₂ from your packaging supply chain. We can even show you the material impact of this with our unique Packaging Optimiser software that shows the cost and CO₂ reductions our solutions can generate..
• Advice from a business dedicated to sustainability – we’re always looking for ways to make our business more sustainable and help our customers do the same. We hold certifications, accreditations and standards that demonstrate our commitment to sustainability practices, like an EcoVadis gold rating, as well as being a Sedex member (find out more here). So, you can rest assured you’re getting expert packaging advice from a trustworthy source.

Don’t hesitate to get in touch to see how we can help you today.

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It’s fair to say it’s been a mixed year for the UK.  We’ve had a Coronation, climate change protests, weather-based emergencies, and the highest inflation on record – not to mention a plethora of TV presenter scandals that kept us all guessing…

As usual, the year has passed in a blur and we can probably all agree that the cost-of-living crisis has made it one of the most challenging years for individuals and businesses alike. 

These challenges have impacted the way that companies have forecasted and managed their budgets. Much of our work this year has been to support our customers and help reduce the cost of their packaging, as well as the impact it can have on their operations.

In this article we’ll consider what happened during the packaging industry in 2023, as well as economic, legal and social factors that could impact the packaging trends we’ll see in the next year.  Plus, we’ll dive into the packaging trends our experts are predicting.

A look back at Macfarlane Packaging in 2023

The packaging industry is always fast paced, and life here at Macfarlane is no exception. In the first half of the year we launched our second state-of-the-art Innovation Lab. The new facility, based just outside Manchester, features a host of leading equipment and machinery, like ePASS testing tech.

During summer, we launched our 8^th annual unboxing survey. Over 1,000 consumers unpacked their opinions on the packaging used by internet retailers. Results highlighted that sustainable packaging – including recyclable and recycled content options – are still a high priority for consumers. Findings also emphasised the tricky balance retailers face making their supply chain as cost effective as possible, while continuing to enhance the unboxing experience for consumers.

At the end of 2023, we’ve seen more and more businesses beginning to prepare for Extended Producer Responsibility (EPR). The legislation will see the cost of household waste processing pass to “packaging producers”, so many businesses have been looking for ways to mitigate forthcoming fees.

What will influence packaging in 2024?

There are several different factors that could influence packaging trends in 2024:

Economic uncertainty will continue to create cost stresses for businesses – while consumer confidence and spending is expected to grow moderately, it will be tempered by increases in interest rates and cost-of-living support being phased out (source). This will mean many households will still be cutting back.

On top of this, the National Minimum wage rise in April 2024 combined with labour supply shortages and low levels of investment in business present a challenge. Businesses will face higher production and labour costs, and increased competition for labour too.

Packaging legislation will influence business costs   – the abovementioned EPR regulations are expected to impact many businesses and many companies will incur increased costs as a direct result of packaging they put into the UK market. It is thought it could shift almost £1.4bn of expense over to producers. Plus, businesses are going to have to invest in improved reporting, training and staff to manage compliance.

Consumer and legislative pressure will continue to drive sustainability priorities – consumers are continuing to demand eco-friendly packaging materials. Our latest unboxing research confirms this. Plus, modulated fees from EPR regulations will drive businesses to rethink their packaging materials. For example, paper is expected to attract a lower fee vs. plastic.

In addition, the EU’s Corporate Sustainability Reporting directive may also impact businesses in the UK if they have any significant European footholds. They’ll be required to provide more detailed sustainability data and report on the impact of their supply chain, further applying pressures around sustainability priorities.

Packaging trends to expect in 2024

So, without further ado, here are the packaging trends that our experts are predicting for next year…

Granular packaging data

The first trend we’re predicting is the need for granular packaging data.

Earlier in this article, we mentioned EPR. The new regulations mean packaging producers will need to report on their packaging materials in more detail than ever before. A “packaging producer” can include all sorts of business, including distributors like us through to retailers and online marketplaces. Essentially, if any packaging you use, sell, make or distribute will end up in household waste, you could be eligible if you meet certain turnover and packaging weight requirements (learn more here).

So, what packaging data should you be tracking? You need to get granular and make sure you can identify:

• Packaging material type (e.g. paper, plastic, wood, glass)
• Packaging material weight (this should be by material type / category)
• Packaging activity / how it was supplied (branded or unbranded, filled or empty, imported, hired or loaned)
• Packaging class (whether it is primary, secondary, tertiary or shipment packaging)
• Packaging by waste type (household, non-household, on the go, reusable or self-managed)

Advanced packaging optimisation

The second trend we’re predicting is advanced packaging optimisation.

The results of our latest unboxing survey highlighted the careful balance that retailers and their third-party logistics partners need to strike when balancing costs, sustainability and packaging function alongside consumer expectations. This careful balancing act won’t just apply in B2C markets either – they’ll apply for B2B companies too.  

In this instance “out of the box” packaging solutions are no longer cutting it for many companies. Highly optimised variants are becoming key for businesses looking to balance cost effectiveness alongside other priorities. Packaging optimisation allows businesses to customise their packing materials to meet their sustainability goals and the expectations of their customers. For example, a highly valuable product might need packaging that’s tamper evident – calling for a design with anti-theft features, as well as specialist sealing that a standard 0201 cardboard box might not offer.

Sustainable and recyclable packaging designs

The third trend we’re predicting is sustainable and recyclable packaging designs.

As EPR kicks in with modulated fees, we’ll see a drive from businesses to review their packaging based on the taxation charges and focus on re-engineering their pack weight, size and recyclability.  This is not only positive for consumers but, will also have a positive impact for businesses as packaging costs could decrease. 

It is likely that businesses will also look at the types of material they’re using for their packaging as well. For example, we are likely to see even more businesses be driven to paper-based packaging vs. plastic. Especially given the fact that plastics will be double taxed, when you take into account the Plastic Packaging Tax that was launched in 2022.

Cradle to grave design will be phased out and cradle to cradle design will become the new norm. For example, we already have customers using transit packaging that can then be repurposed as gift packaging!

Investment in reusable packaging

The final packaging trend we expect to see emerging in 2024 is businesses investing in reusable packaging.

Our 2023 unboxing results revealed that 86% of consumers would be willing to return packaging to retailers if it was reusable. And this can’t be ignored. It highlights a shift in thinking towards a more circular economy.

On top of this, reusable packaging will be exempt from EPR fees, so it’s likely that many businesses will start considering how they can factor it into their packaging strategies.

This trend will likely be a longer-term shift, as there are practicalities that will need to be considered, such as how packaging will be returned for reuse and how reusable packaging will be returned for reuse, cleaning and maintenance.  

Support handling packaging trends in 2024

At Macfarlane Packaging, we have a wide range of products, services and facilities to help you handle the packaging trends that 2024 will throw your way. Tools like the Packaging Optimiser can show you the carbon and financial cost of your packaging, while our Innovation Labs can help you design and test your ideal packaging and our e-trading portal can generate packaging usage data at the click of a button.

Don’t hesitate to get in touch to see how we can help.

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Now in its eighth year, our Unboxing Survey (the largest of its kind in the UK) aimed to assess if consumers’ packaging priorities have changed, considering the cost-of-living crisis, and if sustainable packaging had become a decision-maker for even more consumers when choosing to shop online with a brand.

In this blog, we’ll unpack the results of our 2023 Unboxing Survey and provide valuable, constructive insights into consumer experiences with ecommerce packaging…

The backdrop of our 2023 Unboxing Survey

The survey has taken place during a challenging time for retailers and consumers alike. Significant increases in inflation and cost-of-living at the end of 2022 spilled into 2023 and have left many with less disposable income. The knock-on effect? Internet retail revenue has seen negative growth during the first half of 2023. On top of this, many consumers are less loyal to brands because of economic concerns.

So, where does packaging factor into this? Well, packaging can play a big role in the online shopping experience. It’s the first tangible touchpoint when consumers shop online and can help build doorstep anticipation. 

Let’s unpack what consumers have had to say…

Unboxing now and then

Since we began our unboxing research eight years ago, a lot has changed for retailers and consumers alike. This means the packaging used to ship online shopping has changed too – and for the better.

Retailers have made strides to improve their packaging with a 46% increase in branding appearing on their packing materials. Another improvement we’ve witnessed is a 40% decrease in parcels arriving with damaged goods. Fewer retailers are overpacking their products too – listening to customer frustrations about excess packing materials.

Consumer shopping habits and how packaging influences them

This year, two thirds of consumers have stated they’re spending more time shopping online. Most consumers also overwhelmingly report home delivery is their preferred way to receive goods.

On top of this, returns are an important factor. They remain a big concern for consumers, as confirmed by recent findings from Klarna with 84% of shoppers saying they’ll turn their back on a retailer after a bad returns experience. Positively, of consumers who had to make a return, 89% reported they used the packaging deliveries came in to do so.

So, what does this mean for packaging? Well, with more and more people shopping online, it puts the onus on retailers and their partners to continually innovate when it comes to packaging. Packaging must be suitable for home delivery, as well as return-ready to provide the bare minimum unboxing experience.  

Demands for retailers to keep sustainability a high priority

The environment remains a top concern for consumers. 55% say retailers should keep sustainable packaging a top priority. A further 42% also believe it should be a priority – but not at the expense of keeping costs down.

Essentially, our unboxing survey results highlight the tricky balancing act of managing cost and sustainability. Particularly during times of high inflation that are not only impacting consumers but, business costs too.

In terms of how sustainable packaging will evolve in the future, 87% of consumers reported they’d be willing to return reusable packaging to retailers. This demonstrates that people are becoming more conscious of the circularity of packaging.    

The packaging balancing act – managing costs and sustainability

As mentioned, it can be a fine line for retailers trying to manage costs and sustainability. The solution? Packaging optimisation.

More and more online retailers and 3PLs are turning to highly optimised packaging to overcome supply chain complexities, increase efficiency, lower costs and, ultimately, reduce their environmental impact.

At Macfarlane Packaging, we have the tools and facilities to help retailers create a memorable unboxing experience while optimising their packaging, like our Innovation Labs. Plus, our Packaging Optimiser software can illustrate the savings to retailers’ bottom line and the environment when they make improvements to their packaging.

To see the full results of our 2023 Unboxing Survey, click here. If you’d like help delivering an amazing unboxing experience, get in touch today.

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To manage the impact packaging has on the environment, the UK Government has begun delivering a program of packaging legislation reform. These changes are key in the Government’s strategy to tackle climate change and build a more circular economy that supports delivery of the 25 Year Environmental Plan.

So, what are key environmental packaging regulations that you need to be aware of? Here, we’ll provide a whistlestop tour of key legislations that may impact you if you use packaging.

UK environmental packaging regulations to be aware of

There are currently three key packaging-related environmental legislation schemes to be aware of:

• The Plastic Packaging Tax
• The Extended Producer Responsibility scheme
• The Deposit Return Scheme

What is the UK Plastic Packaging Tax (PPT)?  

The UK Plastic Packaging Tax (PPT) is a tax on plastic packaging that was introduced by the UK government to reduce the amount of plastic waste produced and came into effect on 1 April 2022.  It applies to plastic packaging that does not contain at least 30% recycled plastic.

The rate of the tax increased on 1 April 2023 to £210.82 per metric ton of packaging that does not meet the minimum recycled content threshold. This means that companies that produce or import plastic packaging must pay the tax, which is intended to encourage the use of recycled plastic and reduce the amount of plastic waste sent to landfill or incineration.  From 1st April 2024, the tax will be applied at £217.85 per tonne.

The revenue generated from the tax is set to be used to support initiatives that will reduce plastic waste and improve recycling infrastructure in the UK.

You can find more resources about the Plastic Packaging Tax here.

What is the Extended Producer Responsibility (EPR) scheme?  

The Extended Producer Responsibility (EPR) scheme is a policy approach that makes producers responsible for the environmental impact of their products throughout their entire life cycle, from production to disposal. The goal of the EPR scheme is to shift the cost of recycling and waste disposal from local authorities to producers and retailers, incentivising businesses to design packaging that uses less material and are easier to recycle or dispose of.

The scheme is designed to properly fund Local Authority for the full cost of recycling services and is strongly linked to other regulation that the Government intend to bring forward to increase the quality and consistency of recycling across the UK.

EPR schemes are being implemented in many European countries, but each country has set their own parameter of regulations.   

The UK EPR scheme will be implemented in the UK during 2023, with fees commencing during 2024. If you would like to find out more about the scheme or how Macfarlane can help your business reduce future EPR costs, look at our EPR landing page, which details information about the scheme and access to our FAQs.

What is the Deposit Return Scheme? 

For those of us old enough to remember buying “pop” in the 70’s, the Deposit Return Scheme will bring back memories of collecting up bottles to cash in at the local shop.  

With the Scottish’s Governments recent decision to delay their scheme, it is now expected that a UK wide scheme will go live in 2025. This will apply a charge to single use drinks containers which will be refunded on return to retailers.   The UK Government are hoping to reduce the number of bottles and cans discarded as litter by 85%. 

What other environmental regulations should I be aware of?

While it isn’t a UK regulation, if you are a business that has a foothold in Continental Europe, it is also worth being aware of the new EU Corporate Sustainability Reporting Directive.

The EU legislation wants all large companies to publish regular reports on their environmental and social impact, and packaging can play a role in this. You can read more about the CSRD in our article here.

Furthermore, for all businesses with significant operations in Europe, the EU is currently bringing forward additional legislation known as the Waste Packaging Regulations. It’s highly ambitious and seeks to set new regulatory requirements including, waste reduction, limitations on packaging empty void space and setting targets around reusable packaging in certain sectors. This legislation is currently expected to come in to force for EU member states during 2025.

Support with sustainable packaging and carbon emission reduction

If you need support making your packaging more sustainable and future proofing your business against future regulations, we have the expertise to help you. Tools like our Packaging Optimiser can help you make informed decisions about what your packaging is costing you and the environment, and model how solutions can remove CO₂e from your packing operation. Contact us to learn more.

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The word counterfeit often brings to mind high end luxury items, like designer handbags, clothing and watches, but the problem goes much wider. The range of goods available includes electricals, car parts, vapes, cosmetics, toys, pharmaceuticals and even baby formula. Consumers need to be on their guard when purchasing, which can be increasingly difficult with the ease at which third party sellers can trade in online marketplaces.

Counterfeiting isn’t just a consumer problem either. Europol, the European Union Agency for Law Enforcement, includes business-to-business products such as machines, chemicals or spare parts as subject to falsification.

The growth of the counterfeit industry

Counterfeit goods are typically manufactured by individuals or organisations that aim to profit from their sale of fake products. Operating at different levels of sophistication, they range from small-scale operations to large, well-organised criminal networks.

In some cases, organised crime syndicates may be involved in the production and distribution of counterfeit goods. There is an underground economy devoted to copying and selling any conceivable product that you can think of including low value products like laundry detergent or soap.

The internet has increased the amount of counterfeit goods sold worldwide. The ease of setting up online marketplaces and the anonymity of online transactions have made it easier for counterfeiters to sell their goods. It’s also made it easier for counterfeiters to reach consumers in different countries.

This has led to an increase in the volume of counterfeit goods sold, as well as the types of goods being counterfeited.

The impact of counterfeit goods on the economy

This illicit trade not only translates to lost sales for legitimate businesses, but counterfeit goods may also pose health and safety risks to consumers, which can result in further costs to the healthcare system and other public services.

Counterfeit goods have a significant impact on the UK economy. According to a report by the Organisation for Economic Co-operation and Development (OECD), the value of imported counterfeit goods worldwide was around $509 billion in 2016, representing 3.3% of global trade. The UK is among the countries that are heavily affected by the trade in counterfeit goods, with a reported value of around £13.6 billion in 2016.

The risk of counterfeit goods to brands

Counterfeit goods can damage a brand’s reputation by diluting its value and authenticity.

Consumers who unknowingly purchase counterfeit products and do not have a positive experience with them, will have negative perceptions of the brand and it may impact product reviews, word of mouth recommendations and future sales.

Counterfeit goods can also result in a loss of revenue for brands, as counterfeiters often sell their products at a lower price than the genuine article. Stores offering fake products at a lower or indeed, bargain price, will win the sale, reducing potential sales on other platforms.

How brands can protect their goods against counterfeiting with tamper evident packaging

Packaging plays a crucial role in protecting brands against the risk of counterfeit goods. So, not only does can protect your product from damage, but the right packaging materials can protect your reputation too!

You may hear people refer to tamper evident packaging or anti-counterfeit packaging. So, what is tamper evident packaging? It is packaging that has indicators or barriers to entry, which if breached can be expected to provide visible evidence to the end user that tampering has occurred.

In short anti-counterfeit packaging or These are specific products that are designed to highlight if someone has tampered with a package. But there are lots of different ways you can combat the risk of counterfeiting with packaging.

Here are packaging tips to consider: 

• Think about branded packaging carefully – printed packaging with strong branding can make it difficult for counterfeiters to replicate. This includes using distinctive colours, logos, and fonts that are easily recognisable. Some brands choose to print their custom packaging on the inside only, so the exterior does not expose the contents of packages.
• Complex or unusual packaging designs can be hard to replicate – packaging designs that are complex and difficult to reproduce can make it harder for counterfeiters to copy the product.
• Design your packaging to include security features – this can include things such as holograms, or unique serial numbers. Alternatively, you can even include security folds into your cardboard box designs, to stop would-be thieves putting their hand in to parcels.
• Tamper evident markers can help prevent interference – tamper-evident seals and labels will help to verify the authenticity of your product and make it more difficult to remove without tearing or marking the pack, rendering it unable to be reused.
• Use connected packaging to track goods – connected packaging with tracking technology, such as RFID tags, which allow companies to monitor the movement of their products from the point of manufacture to the point of sale, makes it easier to detect any unauthorised diversion or tampering.
• Help your customers spot a fake – educate your customers about the packaging and labelling of your products to make it easier for them to spot fakes.

Support with tamper evident packaging

At Macfarlane Packaging, we work with customers to ensure their branded packaging delivers the high levels of security and protection, helping to protect their product, their brand and their reputation.  

If you would like to find out more about our branded packaging solutions, contact us today.

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The Spring Budget delivered some light relief for businesses, as unexpectedly the Chancellor, Jeremy Hunt, announced a further freeze on fuel duty for another 12 months, extending the 5p a litre cut in duty on petrol and diesel.

Increased transportation costs have contributed to the record inflationary highs of 10.4% in February 2023 in the UK as it ultimately impacts the prices of goods and services. It also has a knock-on effect to consumer spending as we all have less disposable income to spend, contributing to a slowdown in the economy as people reduce their spending.

As many businesses rely on diesel-powered machinery or vehicles, higher diesel costs are increasing operating expenses and impacting profits.

Of course, there is an upside to the fuel cost increases – the impact on the environment. As a major contributor to air pollution and greenhouse gas emissions, these higher diesel prices can incentivise businesses to optimise their vehicle fleet to use less fuel and, potentially, switch to cleaner forms of transportation.

In this blog, we’ll discuss you can utilise packaging to optimise your vehicle payload! We’ll also look at ways to maximise your vehicle space to reduce transportation costs and minimise your environmental impact.

Even if you are engaging couriers to deliver on your behalf, how you pack your products for delivery will still have an impact on your business. Optimised shipments will help you to reduce your operational costs and improve the sustainability of your business. We will cover:

The importance of optimising your delivery network

Maximising the load of a lorry or delivery van (also known as optimising the payload) helps to increase efficiency, reduce emissions and improve productivity.

Carrying a maximised load can increase the efficiency of transportation as the more goods transported per trip, the lower the overall transportation costs per unit. This can result in lower business costs and increase your competitive edge.

It also has the potential to reduce the number of trips required, reducing fuel costs and improving productivity. A maximised load can reduce turnaround times as more goods are transported per trip, reducing the time and costs associated with loading and unloading. This helps you to make better use of resources, such as vehicles and labour, as well as fuel.

Of course, when fewer journeys are required, it reduces the number of vehicles on the road.  Burning fuel releases carbon dioxide and other harmful emissions into the atmosphere, contributing to global warming and air pollution.

By reducing fuel usage, you can reduce the greenhouse gas emissions of your supply chain, improving the sustainability of your business.

How packaging impacts the optimisation of your delivery process

How your products are packed plays a huge role in the size (and shape) of the goods you are shipping. By rethinking how your goods are packed, you have the ability to reduce the footprint of your products.

For example, if a product is packed into a box larger than required, this will impact how much space it takes up in a vehicle and reduce the capacity of your delivery network. Meaning your fleet might have to make multiple trips, rather than condensing the products to a minimum number of trucks.

For some items, there is also the need to use extra packaging to fill the void; this will increase the cost of your packaging materials too. So, ensuring the correct packaging is being used for your product will reduce costs to your operation, from warehousing to transportation!

Utilising packaging to optimise your vehicle payload

Whether you are shipping pallet loads or parcels, there are always opportunities to optimise your delivery vehicles and increase payload. 

Consider ways to optimise the cubage of your products – this means using packaging materials that are a better fit, reducing the amount of air in the pack and maximising space on the delivery vehicle.

Sometimes the adjustment to improve parcel cubage can be tiny – shaving just a few centimetres, or even millimetres, from the height of your transit packaging doesn’t sound like much in isolation but, if you are shipping hundreds of packs per day, that could unlock metres of space!

It has the potential to increase pallet yield too, allowing you to add additional layers to a pallet. As well as maximising payload it also has the possibility to reduce the amount of pallets you need to buy and handle, improving productivity in goods out handling and vehicle loading. It also reduces handling for your customers goods-in team.

How to maximise your delivery routes

Before loading your vehicles, it is important to plan your vehicle runs to ensure that you can make deliveries in the most cost-effective way. Optimising your delivery routes can help to minimise the distance travelled and maximise the number of deliveries made per trip.

Are there opportunities to consolidate multiple orders for a single customer into one delivery? Grouping customer orders is a great way to optimise your transport, reduce fuel use and, save your customer time and effort in processing a single delivery. 

Prioritise deliveries based on factors such as customer importance, delivery time windows, and delivery distance. This can help you plan the most efficient routes and ensure that important deliveries are made on time.

Consider using route optimisation software, there are many software tools available that can help you plan the most fuel-efficient routes. These tools consider factors such as the location of customers, traffic patterns, and delivery windows.

When you can maximise your fuel economy, or miles per gallon (MPG), you also require less fuel stops! This means fewer interruptions in the delivery day…

How to foster fuel efficiency in your supply chain & lower fuel costs

Consider incentives that will improve the efficiency of your drivers and maximise the MPG of your vehicles. Encourage drivers to plan their routes carefully, avoid unnecessary stops, and use fuel-efficient driving techniques.

Good driving habits, such as driving at a moderate speed and avoiding sudden stops and starts, can help reduce fuel consumption and emissions. This not only contributes to your operational cost savings but also has a positive impact on the environment.

Train your drivers in efficient driving techniques, such as accelerating and braking gently, maintaining a steady speed, and avoiding idling. These techniques can help reduce fuel consumption and increase the distance that can be covered on a single tank of fuel.

Rewards for good driving habits can help reinforce the idea that responsible driving is important and lead to more a conscientious driving behaviour.

It’s also worth mentioning the importance of keeping your vehicles well-maintained to ensure that they are running at peak efficiency. This includes regular oil changes, tyre rotations, and tune-ups. Well-maintained vehicles consume less fuel and are less likely to break down, reducing the overall cost of transportation.

Support lowering your fuel costs with optimised packaging materials

At Macfarlane Packaging, we work with customers to optimise their transport operations and increase the payload of their vehicles.

We use a unique tool called the Packaging Optimiser. It helps customers to calculate cubage improvements in terms of vehicle space savings. We can demonstrate the impact on your vehicle runs, operating cost and show the kilograms of carbon saved as a result.

Our support has helped customers to increase fuel efficiency, improve productivity and reduce the carbon footprint of their operation – ultimately lowering fuel costs too.

Why not contact us today to find out how we can support your business?

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You’ve probably heard the phrase “time is money”, well in this day and age space is money too, particularly if you work in the logistics and warehousing industry.

Pallet storage can typically cost between £1.50 up to £5 per pallet. On top of that, business rates for commercial property classed as large distribution warehousing are set to rise. Due to this, many logistics will be looking to control operational costs associated with space.

Packaging materials usually have a significant footprint in most warehouses relative to their value. Therefore, assessing the packaging supplied that are used in an operation and how they’re stored can be a great way to save warehouse space.  

What is the rise in business rates for large distribution warehouses?

Announced in the Autumn 2022 budget, a review of business rates means businesses (like online retailers or logistics companies) who own large distribution warehouses will see rates rise by up to 27%.

The increase is set to impact on some 700,000 properties, driving up the operational costs of online marketplace warehouses.

Why are business rates rising?

The rise in business rates has been announced to address the “clicks vs. bricks” imbalance. It was chosen instead of the touted online sales tax, as increasing business rates was less complex.  

For omni-channel retailers, the increase in costs can be offset against the discounts they’ll receive for their bricks and mortar properties. In contrast, it’s going to be more challenging for pure-play e-commerce retailers, where they will be exposed to the increate in rates against a turbulent backdrop.  

So, how can businesses combat increasing operational costs and rates rises?

The role of packaging materials in saving space

The packaging materials a business uses can play a big role in saving space in a warehouse. In relation to it’s value, packaging often has a big footprint

Therefore, optimising your packaging and how it is stored can have a big impact on storage costs. Just small changes can amount to big space savings. Using packaging that is lighter and smaller ca help improve pallet yields, minimise the space you need for storage and have a positive knock-on-effect when it comes to transport and courier costs, as well as packaging waste!

Let’s take a look at some packaging tips to help claw back some space in your warehouse…

5 space-saving packaging tips

1. Swap bulky protective packaging products for compact ones  

There’s no denying that certain packaging solutions take up a lot of space. For example, materials like polystyrene, bubble wrap rolls or loosefill packing chips can have a significant footprint.

Why not try a compact alternative? Here are a few to consider:

• Air pillows – void full that is inflated on demand can be incredibly space saving. Rolls are compact, easy to store and quick to handle vs. bubble wrap or packing peanuts.
• Paper on demand – compact blocks of paper void fill are another space saving packaging option. One block of paper can often produce as much protective material as six packs of packing chips.
• Flexi-Hex® – this expanding, honeycomb packaging is a great alternative to products like polystyrene bottle packs. It comes flat and you expand it upon use, so it has a much smaller footprint and is 100% recyclable.

2. Review your cardboard box specifications and pallet plans

If you’re using cardboard boxes, have you considered if the design is as effective as it could be? The board grade, box size and orientation of the design can all impact how many boxes you can get on a pallet.

Shaving a few millimeters off the size of a box or changing the orientation could allow you to increase pallet yields. By increasing the number of boxes you can store on a pallet, you’ll need to store fewer pallets in your warehouse. Another positive of a change like this is that costs and emission associated with transporting the boxes can lower too!

3. Optimise existing warehouse space by putting vertical space to use   

When we think about warehouse space, we often think about the floor space available to us. But have you factored in how you’re using the vertical space in your packing operation?

Are you utilising the full height of your warehouse? By increasing the height of your racking, you could release floor space for other uses, such as adding in new packing stations.

If your racking is already full height, have you analysed how much space there is between the top pallet and the roof beams? You’ll need at least 6 inches to allow for pallet movement, but if there is more than 6 inches space, it could be a sign to look at how to optimise pallet stacks, to see if you can make use the spare vertical space.

4. Consider if you can reduce how many packaging SKUs you need

Over time, many businesses keep adding more and more packaging SKUs to their operation as demand grows or product ranges evolve. The result? Sometimes you may be storing more packaging supplies than you need.

A good approach is to apply the Pareto Principle. In many situations just 20% of your packaging SKUs will be active lines able to account for packing 80% of your products. You should allocate prime storage to the active packaging lines and review if the other lines are needed.

Another option would be to look at multi-use packaging materials, where the same box or fitting can be adapted for multiple products. For example, variable depth boxes.

5. Take advantage of a stock holding service for packaging materials

If you’re tired of packaging materials clogging up pallet spaces, one of the easiest ways to free up space is to take advantage of a stock holding services.

Distributors, like us, often offer to hold packaging materials on-site and deliver it to your door on a just-in-time basis. This helps minimise space absorbed by packaging supplied and allows you to control cash flow and inventory.

Help controlling storage costs and releasing warehouse space

Our experts can help you reduce storage costs and show you the impact new packaging solutions will have on your warehouse space with our Packaging Optimiser. Savings can help you combat business rate rises and manage your operational costs.

Get in touch today to learn more.

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