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OPINION: ‘Home sweet home – Why domestic material supply is key to achieving a closed-loop circular plastics economy’

Grant Jones, Commercial and Sales Manager at Sherbourne Recycling, explores the challenges facing the UK’s plastics recycling market, discusses the hidden costs associated with waste imports and explains the conditions needed to achieve a circular economy for plastic packaging.


OPINION: Over the past 24 months, the UK’s plastics recycling market has experienced significant turbulence. Alongside weak market economics and major policy reforms, the closure of several major reprocessing facilities has resulted in declining capacity, infrastructure limitations, fierce competition for supply contracts and hundreds of job losses.

Grant Jones, Sherbourne Recycling
Grant Jones, Sherbourne Recycling

To compound the issue, key offtakers are said to be increasingly shunning domestic Material Recovery Facilities (MRFs) in favour of international traders to better meet their material requirements at a more cost-effective price point. As a result, the UK is now importing more plastic waste from overseas than ever before, while export figures have increased by almost 85% in parallel.

It’s frustrating to see recycled material shipped thousands of miles to reach its end destination, but there’s a bigger concern here that must be addressed. Indeed, with unanswered questions surrounding transparency, traceability, accountability and carbon emissions, an increasing reliance on imports could be seriously damaging the sector’s progress towards achieving a circular economy for plastic packaging.

The changing face of UK plastics

UK plastics recycling is at a crossroads. While capture and collection rates are accelerating, reprocessing capacity is shrinking. 21 facilities have announced their closure in the past 24 months alone, including Biffa’s Sunderland facility, three Viridor sites and Vanden Recycling’s plant in Peterborough.

With more material to reprocess and fewer operational sites, there’s a huge supply surplus. As a result, an increasing volume of feedstock is being forced into export – more than 300,000 tonnes in the first half of 2025, according to insight from the National Packaging Waste Database.

But while capacity is proving a considerable challenge, concerns over the quality of UK plastic waste is simultaneously resulting in reprocessors looking elsewhere for feedstock. Bales may well be piling up in yards around the country, but the lure of Deposit Return Scheme (DRS) origin material from overseas is seen as hugely attractive.

There will always be a degree of truth in reputation, but it’s fair to say that it’s a case of dated insight and widespread misconception when it comes to UK plastic waste quality. Take Sherbourne Recycling, as an example. By harnessing the latest advances in artificial intelligence (AI) and robotics, our state-of-the-art MRF achieves exceptional material quality.

This ability to reach the highest echelons of output quality guarantees a clean, reliable material supply for reprocessors – we can even achieve food grade levels for recycled HDPE. While we appreciate that our site is one of the most advanced facilities of its kind, it’s essential that the UK’s sorting capability is seen on a wider scale.

The hidden costs of international supply

Perceptions won’t change overnight, and the high purity levels promised by material imports are difficult for reprocessors to ignore. That said, it’s important to consider the wider implications of international waste haulage. Prices are clearly favourable on the surface, but the added costs of handling, logistics, governance and customs costs quickly add up.

Alongside financial considerations, however, it’s also important to calculate the associated environmental, social and economic implications that often remain completely unaccounted for. These ‘hidden costs’, which include embodied emissions, material miles and concerns over traceability, have a detrimental impact on the environmental performance of recycling.

But what does this mean in practice? Well, let’s isolate carbon emissions. For every tonne of plastic waste shipped, you can expect emissions of between 191-340kg of CO2e. If you use data from the Organisation for Economic Co-operation and Development (OECD), which accounts 1-1.5 tonnes of CO2e to the production of every tonne of recycled plastic, you’re increasing your carbon footprint by over 30%.

As regulations tighten regarding the sustainability of packaging production, it’s important to consider this information carefully. How does import and export impact your carbon footprint? What about wider concerns over traceability? Importing material should surely be seen as a last resort, not an immediate priority.

Circular economy thinking

As the UK aims to accelerate progress towards a truly circular economy for plastic packaging, maximising domestic reprocessing capacity must be prioritised. After all, by opting for locally-sourced material, you can lower your haulage costs, curb your emissions and avoid associated import complexities, best of all, it’s traceable, accountable and reliable.

Doing things right takes time and costs money. A tonne of UK-derived plastic will often cost more than one sourced from overseas, but the ability to guarantee its quality and origin makes it far more valuable overall. High quality, traceable material should be seen as hugely desirable, not an expensive alternative.

It doesn’t make sense to source waste from overseas. It’s a false economy and sets us backwards in national efforts to achieve a circular economy for plastic packaging. Amid the industry’s continued turmoil, now’s the time to think carefully about supply agreements for the future.

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