Flexible Packaging for SMEs: Why Sustainability Shouldn’t Be This Hard

Flexible Packaging for SMEs: Why Sustainability Shouldn’t Be This Hard
By Elliot Hyams, Director & Sustainability Lead at SPS Pouches

Sustainability has become the buzzword of the packaging world—but for SMEs and startups it often feels like navigating a minefield. At SPS Pouches we’ve seen first-hand the challenges that small businesses face when trying to do the right thing for the planet when bringing products to market in a difficult economy. Let’s be honest though, it shouldn’t be this complicated.

The Realities of Sustainable Packaging for SMEs
New material innovations like MDO technology are transforming the flexible packaging landscape, offering recyclable, mono-material solutions that should tick all the environmental boxes for brands. But here’s the problem—these materials often come with sky-high MOQs, making them financially challenging to access for SMEs. Even when businesses choose to absorb these higher costs to adopt sustainable packaging, the UK’s current recycling infrastructure falls short as most of these materials can only be recycled at large stores and supermarkets, limiting their real-world environmental impact. This puts SMEs in a difficult position. Traditional material structures that aren’t designed for recyclability are widely available in smaller quantities at more affordable prices, making them the practical choice for budget-conscious businesses. However, despite a genuine desire to go green SMEs are often forced to choose between commercial viability and environmental responsibility, and even when they make sustainable decisions the lack of widespread recycling infrastructure means they’re not reaping the full benefits of their investment. That’s not just a business dilemma, it’s a systemic failure. It’s our firm view that opting for sustainability shouldn’t be a difficult decision, it should be the standard supported by the necessary infrastructure.

The Customisation Conundrum
At SPS Pouches, we’re committed to supporting SMEs and startups across a range of industries—from pet food and food supplements to cosmetics and beverages. These businesses aren’t looking for generic solutions, they want fully customised packaging that reflects their brand, stands out in a crowded market and resonates with their customer base.

In an ideal situation we could streamline our operations and offer pouches with fixed sizes and material structures which would enable us to bulk-order recyclable materials and reduce costs, however we would then lose the ability to offer brands the flexibility they really want. It would mean losing what makes us different: our ability to deliver customised, flexible packaging solutions with accesible order quantities. Our customers rely on this kind of bespoke service to differentiate themselves, especially in competitive spaces like e-commerce where first impressions are everything. If we simply followed the crowd we’d just be another packaging provider competing on price and delivery speed, not delivering the expertise and innovation we pride ourselves on.

The Promise of Simpler Recycling
One development we’re genuinely optimistic about is the UK government’s Simpler Recycling initiative, which aims to make flexible packaging kerbside recyclable by 2027. This could be a real game-changer for companies that want to use more sustainable packaging but are held back by the lack of proper recycling infrastructure. Right now only a handful of local authorities accept mono-material pouches, making it tough for businesses to market their eco-friendly packaging efforts convincingly.

It’s always been clear to us that plastic isn’t the villain here, it’s the inadequate waste management systems that have given it a bad name. With the right recycling infrastructure in place plastic will be the solution, not the enemy that many believe it is. LCAs consistently show that plastic is a low-impact material compared to alternatives thanks to its lightweight nature, durability, and resource-efficiency. The challenge lies in ensuring that these benefits are fully realised through effective waste management systems.

For companies like ours, schemes like this will allow us to better support SMEs in making sustainable choices without these opportunities being undermined by poor end-of-life recycling options. 

Leading the Charge for SME Sustainability
The plastics industry has done its part, pioneering technologies that make sustainability possible and practical. At SPS Pouches, we believe SMEs deserve access to these incredible innovations—from advanced barrier properties to incredible recycling technologies. What’s been missing is the government’s support to roll out infrastructure like Simpler Recycling which will finally give businesses the tools to manage plastic responsibly.

Until these systems are fully in place, we’ll continue pushing the move towards a more circular economy, offering flexible packaging that balances sustainability with the unique needs of growing businesses. The future of packaging is flexible, recyclable, and SME-friendly—and thanks to the innovations of the plastics industry and the support of the BPF, we’re proud to be leading that charge.