Packaging

Plastic packaging is commonly used for the transport of timber timber due to the practical benefits it offers as a low-cost option to protect and preserve – however it comes with an environmental cost. As we move to a circular economy, the industry is working to reduce this form of waste.

Packaging plays a critical role in the protection and transport of goods – but it is also a major contributor to waste. Optimising the timber supply chain to realise its environmental benefits means minimising the use of plastic packaging wherever possible. Wood itself is also often used as packaging – usually in the form of either pallets or crates. This page explores key regulatory changes in the UK, emerging alternatives to plastic packaging, and actions to enhance circularity.

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Explained

01 Scale of the issue

Case Study: VELUX. They have begun to move away from plastic packaging (EPS – expanded polystyrene) towards responsibly sourced paper and cardboard, and using paper tape too.

In 2022, the UK generated approximately 12.6 million tonnes of packaging waste, according to DEFRA. Of this, around 2.2 million tonnes were plastic packaging, of which about 51% of plastic packaging was actually recycled. Construction-related packaging — including materials for timber, insulation, fixings, and panels — contributes a significant portion of commercial packaging waste, though it is less often monitored compared to household streams.

While precise figures for packaging specifically used for timber products are limited, it is widely recognised that:

Most softwood, engineered wood products (CLT, glulam, MDF), and joinery components are wrapped or covered in polyethylene (LDPE) stretch film or heat-shrink plastic for shipping and storage protection.
Pallets, battens, and bearers are often supplied with plastic strapping, edge guards, or shrink wrap to protect corners and bind packs.
Internal packaging (e.g. for furniture or prefabricated timber kits) can include foam sheets, bubble wrap, and composite plastic liners — most of which are difficult to recycle post-use.

Estimates suggest hundreds of thousands of tonnes of plastic packaging waste are associated with the UK construction sector annually, with timber as one of the largest material categories involved. Reducing single use plastic packaging is a key pillar of the shift to a circular economy - for the timber industry - and for businesses and consumers as a whole.

The other major way that timber contributes to packaging waste is through its use in the wider transport and logistics sector in the form of either wood pallets or crates. These too can - and do - enter the waste stream when care is not taken to embrace their circular possibilities - and are a major contributor to wood waste in the UK.

02 Timber and packaging waste

Timber is a source of two primary forms of packaging waste. These are from the use of wood as a form of packaging, most commonly for pallets or crates, and from the use of plastic packaging to transport timber products – which remains wide spread due to several practical benefits. These include:

Moisture protection during storage, shipping, and site handling
Durability and tear resistance for rough handling and long-distance transport
Lightweight and low-cost
Visual transparency, allowing identification of product batches or labels without removal
Standardisation — many manufacturers rely on plastic films and wraps as part of automated production and dispatch processes

Despite its functional benefits, most plastic packaging around timber is single-use, non-biodegradable, and often ends up in mixed commercial waste streams that are not effectively recycled. Minimising the use of single plastic packaging is therefore a major focus for both industry and regulators.

The other major contributor to packaging waste - wooden pallets – arises as a result of the wider transport of materials. Wooden pallets are an essential component of logistics and material handling across the UK economy — particularly in the construction, retail, and manufacturing sectors.

Despite the utility and inherent renewability of wood pallets, they represent a significant stream of material waste, resource use, and carbon impact if not managed properly.

TIMCON estimates that there are approximately 250 million pallets currently in circulation in the UK and over 40 million new pallets added to the supply chain annually. Over 90% of these are made from timber, typically low-grade softwood – often from UK forests - with these pallets accounting for around 1.5M tonnes of wood material used per year in the UK.

While many wood pallets are reused or repaired, particularly in the fast moving consumer goods (FCMG) sector, they still represent a waste stream when they are damaged beyond repair or not recovered after use because they are non-standard and not suitable for return systems. There are 20 million pallets manufactured annually for the construction industry alone, many of which are used only once (single-trip pallets) and then discarded.

DEFRA and WRAP data suggest that wood pallets make up a large portion of the UK’s waste wood - with an estimated 1 million tonnes of waste wood generated annually in the UK, pallets and packaging timber representing a significant share.

03 UK regulatory changes impacting packaging

A range of UK policies are now reshaping how packaging is produced, used, and managed, with major implications for timber manufacturers and suppliers. These include:

The Current and Prospective Packaging Waste Regulations. This technical papers summarises the current packaging waste regulations and how they affect timber suppliers.

Extended Producer Responsibility (EPR)

Shifts the full cost of managing packaging waste onto brand owners, not local authorities.
Businesses must report the type and amount of packaging they place on the market.
Charges will increase for non-recyclable or difficult-to-process materials (e.g. composite plastic wraps).

These changes affect all businesses with a turnover equal to, or greater than, £1million, and handling packaging of 25 tonnes or more, who are now required to submit an annual report.

Plastic Packaging Tax

Applies to plastic packaging that does not contain at least 30% recycled content.
Tax set at £210.82 per tonne (2024 rate), incentivising recycled or alternative materials

This tax applies to all business importing or manufacturing 10 tonnes or more of finished plastic packaging components within a 12-month period.

Single-use plastic bans and restrictions

Ongoing bans are emerging at a national and local level on single-use plastics, from plastic straws through to polystyrene and non-recyclable films in retail.

While this does not currently impact timber. future regulations or bans may extend to construction packaging under broader waste directives.

Together, these changes are aimed at encouraging manufacturers and supply chains to rethink packaging formats, reduce unnecessary wrapping, and explore bio-based or reusable alternatives.

04 Alternatives to plastic packaging

As awareness grows around the environmental impact of plastic packaging, the timber industry faces increasing pressure to reduce waste, comply with regulations, and adopt more circular practices. While packaging plays a critical role in protecting timber products during transport and storage, there are growing opportunities to replace plastic with sustainable alternatives. These include:

Recycled LDPE plastic | Plastic film with ≥30% recycled content (compliant with Plastic Packaging Tax). This can be a useful alternative, however it is still single use and has limited recycling opportunities.
Cardboard wraps and edge protectors | Corrugated board to protecting corners or covering flat pack components. This is recyclable, biodegradable and lightweight, but it lacks the moisture resistance and strength of plastic.
Reusable textile covers | Heavy duty tarpaulins made from plastic, or even polyester or hemp-based materials. These are reusable and provide a good moisture barrier, but require logistics for return and reuse.
Bio-based films | Compostable films made from renewable resources. These are biodegradable, however do tend to be less moisture resistant than plastic and there can be difficulties with end-of-life composting.

These are a just a few of the alternatives available in place of plastic packaging. Each carries different implications for cost, logistics, recyclability and environmental impact. Often a hybrid approach – which will combine the use of several materials – is the most practical, particularly for complex or high value timber products.

05 Eliminating packaging all together

Moisture Management During Construction. Learn what can happen to timber if is exposed to moisture – and how to best avoid this.

Another strategy for eliminating plastic packaging waste is by avoiding packaging all together. While this is not always feasible - in many cases, it is possible to minimise or eliminate single-use packaging by adjusting procurement, logistics and site handling methods. This includes:

Just-In-Time Delivery (JIT) | Coordinate deliveries closely with installation schedules to avoid long on-site storage where packaging is needed for weather protection.
Direct-to-site Bundling | Deliver timber components in bulk packs secured with reusable straps or battens, especially for structural timber, battens, joists or sheet goods.
Transport Innovations | Use covered delivery vehicles, reusable crates, or stillages to protect goods without needing film or wrap.
Pre-fabrication and modular delivery | Send panels or modules pre-assembled, wrapped in protective outer layers (such as re-usable crate wraps), reducing the need for individual packaging.
Understanding natural durability and finishes | Where necessary, you can specify timber that can withstand short-term weather exposure (e.g. larch, Douglas fir), reducing the need for protective packaging during transit.

Success of these methods, particularly when it comes to logistical and transport innovations, require contractor education - ensuring site teams understand how to unload, store and protect timber without relying on plastic - through covered storage, spacing, airflow, and tarping.

06 Circularity and timber pallets

While timber pallets are a source of wood waste - pallet reuse is already one of the most effective circular economy practices already in place in the timber sector, which continues to be scaled up. Ensuring that pallets remain in circulation as long as possible - and is recycled effectively at end of life - is a low-effort, high-impact action that supports net-zero targets across sectors.

Closed loop systems, where pallets remain in circulation for far longer periods of time, such as from Timber Development UK member Pallet Loop, are enabling the elimination of pallet waste from supply streams.

By creating more robust pallets and supporting their delivery and collection with more sophisticated logistics to incentivise their return, organisations such as Pallet Loop are allowing businesses to avoid thousands of tonnes of wood waste. This is beneficial both for the environment, and regulatory compliance.

Every timber pallet stores a modest amount of biogenic carbon — typically around 20–30 kg CO₂e per pallet. Maximising reuse extends that carbon storage over many years, while premature disposal undermines the climate benefit of timber. Minimising pallet waste, through increased circular solutions, also makes more timber available for alternative uses where their longevity could be extended – or where it can displace more carbon intensive materials, such as in construction.