Both trade bodies have urged Defra to raise the target to 5% from 2026, warning that without stronger obligations producers would lack the incentive to segregate and recycle wooden packaging.
The target will instead remain at 46% next year, with Defra telling the WRA last week that targets for 2027 onwards will be reviewed “as planned” later in 2026.
Mark Hayton, Chair of the WRA, said: “We need a minimum 55% packaging recycling target from 2026 onwards. Without higher targets, there will be no incentive to segregate and recycle clean packaging waste wood.
“Delaying until 2027 means another year lost and even less wooden packaging recycled, undermining both the waste hierarchy and the circular economy.”
Concerns over baseline data
Central to the frustration is what the associations described as inaccuracies in the baseline data used to set wood packaging targets for 2025-2030.
According to the WRA and WPIF, these inaccuracies have depressed the overall recycling obligation and weakened demand for Wood Packaging Waste Recovery Notes (PRNs).
The issue has been compounded by the removal of the general recycling target at the start of the decade.
Recent data published on 21 November 2025 shows a 15% drop in wood packaging reported as reprocessed or exported during the first three quarters of the year compared with the same period in 2024.
Alastair Kerr, Director General of WPIF, commented: “In the panel board sector we have seen the volumes of wood packaging coming through for recycling reduce significantly over the past decade and without stronger targets, this trend will continue.
“We need a clear driver to ensure material is segregated and moved up the waste hierarchy.”
Despite subdued demand, wood PRN prices have avoided slipping to administrative levels this year.
The associations said this has likely happened because supply of reprocessed and exported wood packaging has fallen sharply, reflecting challenging operational conditions across the sector.
Wood market pressures deepen
In November 2025, the WRA warned that the waste wood market remained “under significant pressure”, due to significant stock build-ups and limited processing capacity.
Oversupply remains a key issue, exacerbated by a number of plants being offline in the northwest and Scotland, placing additional pressure on facilities still running.
Most sites are reporting very high gate fees, but many simply have no available space to accept more material. Very few recyclers are trading on a spot-price basis, with many instead fulfilling only their contractual commitments.
While the southeast is in a comparatively better position following the return of Tilbury Green Power to full operations, gate fees remain elevated there as well.
Some companies have explored the possibility of exporting wood to Europe, though sector sources suggest this is not yet in play.
Find out more about the UK wood market in November 2025 in our market report.
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