In a statement issued this week (8 April 2025), the federation said the consequences of the conflict are being “deeply felt” across the sector, with companies reporting widespread shortages, rising costs and worsening trading conditions.
Survey data collected from 104 member companies between 25-27 March indicated the scale of the challenge.
Some 58% of respondents said they had experienced a “severe” or “significant” impact on their operations, while 98% reported increases in raw material or operational costs.
The outlook appears to be deteriorating. More than two-thirds (68%) of companies expect conditions to worsen over the next three months, and 63% said orders have already been delayed or cancelled.
The BPF noted that disruption is not limited to virgin polymers, but extends to additives, masterbatch, machinery and components. Companies are also facing higher freight costs, with sourcing from the Far East described as “extremely difficult”.
Philip Law, Director-General of the BPF, warned that the situation poses a serious risk to the sector: “For many companies the threat posed by the US-Iran war is existential. To help ensure the survival of our industry and to protect jobs, costs will have to be passed on down the supply chain.”
What does the war mean for recycled plastics?
Amid the disruption in virgin polymer markets, there are signs of shifting dynamics within the recycling sector.
Companies reported that while plastics prices were relatively stable at the start of March, upward pressure has emerged in recent weeks, with increases recorded across most grades of recycled plastic.
This has been driven in part by rising crude oil prices, which have pushed up the cost of virgin polymer and improved demand for recycled material.
While higher virgin prices are supporting recyclate demand, ongoing disruption across the supply chain – including rising costs and delayed orders – continues to create a challenging operating environment for the plastics and recycling sectors.
The increasing cost of shipping and cost of running plastics processing plants have, in particular, caused difficulties for recyclers.
Find out more in our plastics market report for March 2026.
The plastics industry has not been the only industry impacted by the war. The paper and metals recycling sectors have also expressed concern about the increased shipping costs and market volatility caused by the ongoing conflict.
Paul Sanderson, Chief Executive of The Recycling Association, commented: “The war in Iran has shown the importance of increasing the use of recycled content to give more materials security.
“Over the last few years, plastics recyclers have had to deal with the impact of cheap imports of virgin plastics and that has often made UK recycling uneconomic.
“UK recyclers are now seeing the increased energy costs, but also at least seeing some more demand for their product as virgin becomes harder to get hold of.
“Policy should therefore focus on measures that increase recycled content, provide support for increased energy costs, allow for free trade of recycled materials at a high specification as a commodity, while supported by a robust PRN and PERN system to support recycling.”
Attention turns to Plastics Packaging Tax
In response, the BPF said it has alerted the UK government to what it described as a “perilous situation” and is urging action in several areas.
These include measures to reduce energy costs for plastics processors, a review of upcoming regulations with financial implications, and the ringfencing of Plastics Packaging Tax revenues for investment in UK recycling infrastructure.
The organisation also called for diplomatic efforts to help secure supply routes.
Law added: “The UK government should be acutely aware of this vulnerability in the UK’s security and act to protect an industry so central to our national interests.”
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