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Explainer 7 min read

Compostable Packaging and EPR: Current UK Status

EPR Compliance Team

Table of Contents


Key Takeaways

  • Compostable packaging is NOT exempt from EPR — it must be reported and fees paid like any other packaging.
  • Compostable plastics (PLA, PBAT) are classified as plastic under EPR and may attract fees of £420-£461 per tonne.
  • UK industrial composting infrastructure is very limited — less than 5% of compostable packaging is actually composted.
  • DEFRA does not recommend compostable plastics for mainstream packaging applications.
  • Recyclable conventional packaging is generally cheaper under EPR and more likely to be properly processed.

Compostable Packaging Under EPR

There is a widespread misconception that compostable packaging receives preferential treatment under the UK’s EPR regime. It does not. Compostable packaging is subject to the same registration, reporting, and fee obligations as all other packaging materials.

In fact, compostable plastics often attract higher EPR fees than conventional recyclable plastics, because they cannot be processed through existing recycling infrastructure and contaminate recycling streams when incorrectly disposed of.

For EPR fundamentals, see what packaging EPR is. For biodegradable packaging specifically, see our biodegradable packaging EPR guide.

Compostable vs Biodegradable vs Recyclable

These terms are frequently confused. Here is the distinction:

TermDefinitionEPR Impact
CompostableBreaks down within a defined timeframe under specific composting conditions (EN 13432 certified)Still subject to EPR fees; classified by base material
BiodegradableWill eventually break down in the environment (no defined timeframe or conditions)Still subject to EPR fees; often higher rates
RecyclableCan be collected and reprocessed into new materials through existing infrastructureFavoured by EPR; lower modulated fee rates

From an EPR cost perspective, recyclable packaging is almost always the cheapest option.

EPR Classification and Fees

Compostable packaging is classified by its base material:

Compostable MaterialEPR ClassificationFee per tonne (approx.)
PLA (polylactic acid)Plastic (non-recyclable)£420-£461
Starch-based bioplasticPlastic (non-recyclable)£420-£461
PBAT filmPlastic (non-recyclable)£420-£461
Bagasse (sugarcane fibre)Paper/fibre£215
Moulded pulp (compostable)Paper/fibre£215
Paper with PLA coatingFibre-based composite£461
Compostable paper (uncoated)Paper£215

Key Observation

Compostable plastics (PLA, PBAT) attract the highest plastic fee rates under EPR because they are incompatible with recycling. Meanwhile, conventional recyclable PET attracts approximately £340/tonne — significantly cheaper.

Paper-based compostable packaging (bagasse, moulded pulp) fares better because it is classified as paper/fibre at £215/tonne. This makes paper-based alternatives the clear winner for businesses wanting both compostability and lower EPR costs.

For all rates, see the EPR fees by material type guide.

The UK Composting Infrastructure Problem

The core issue with compostable packaging in the UK is infrastructure:

Current Situation

  • Very few local authorities accept compostable packaging in food waste collections
  • Most industrial composting facilities reject packaging even if certified compostable
  • No separate collection exists for compostable packaging in most areas
  • Consumer confusion means compostable packaging often enters recycling bins, contaminating recyclate

The Result

The vast majority of compostable packaging placed on the UK market ends up:

  • In general waste → landfill or energy recovery
  • In recycling bins → contaminating recycling streams
  • Very rarely in industrial composting → actually composted

This means the environmental benefit of compostable packaging is largely theoretical in the UK context.

Industry Guidance

DEFRA Position

DEFRA has consistently stated that:

  • Compostable plastics are not a preferred solution for packaging in the UK
  • The priority should be recyclable packaging that works with existing collection systems
  • Compostable packaging should only be used where there is a demonstrated composting pathway

WRAP Guidance

WRAP (the Waste and Resources Action Programme) recommends:

  • Compostable packaging only where it prevents food waste (e.g., compostable tea bags, fruit stickers)
  • Where the packaging is too contaminated to recycle (e.g., food-soiled packaging that would otherwise go to landfill)
  • Where there is a proven composting collection route for the packaging

PackUK

PackUK, the scheme administrator, classifies compostable plastics as plastic packaging subject to standard fees. There is no fee reduction for compostability.

Making the Right Packaging Choice

When Compostable Makes Sense

  • Tea bags and coffee pods — contaminated with food, too small to recycle, compostable with food waste
  • Fruit and vegetable stickers — too small to recycle, do not contaminate compost
  • Food-soiled caddy liners — facilitate food waste collection

When Recyclable Is Better

  • Takeaway cups — recyclable paper or plastic is better than PLA
  • Food containers — recyclable cardboard or plastic is more likely to be properly processed
  • Carrier bags — recyclable PE bags have established collection routes
  • Any high-volume packaging — recyclable formats have infrastructure; compostable does not

EPR Cost Comparison

Use CaseCompostable OptionFeeRecyclable OptionFee
Food containerPLA tray£461/tPP tray£360/t
Coffee cupPLA-lined cup£461/tRecyclable paper cup£215/t
Carrier bagStarch-based bag£461/tPE bag (recyclable)£360/t
Food wrapCellulose film£360-461/tPaper wrap£215/t

In every case, the recyclable option is cheaper under EPR.

Future Outlook

The situation may change if:

  • UK composting infrastructure expands significantly
  • Separate collection of compostable packaging is introduced
  • EPR modulation recognises compostability as a positive attribute

Currently, none of these changes are imminent. Businesses should plan based on the current system.

Getting Started

  1. Audit your compostable packaging and classify correctly
  2. Calculate EPR costs using actual fee rates (not assumptions about exemptions)
  3. Compare with recyclable alternatives on cost and environmental grounds
  4. Switch where beneficial — paper-based alternatives often win on both counts
  5. Monitor DEFRA guidance for future changes

Use the EPR fee calculator and visit our pricing page.

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