Packaging companies sourcing timber, paper and other fibre-based materials are facing new compliance challenges following the UK Government’s confirmation of mandatory due diligence requirements for forest-risk commodities.

The regulations, confirmed in June 2026, require businesses trading covered forest products to demonstrate that their supply chains are not contributing to illegal deforestation.

For packaging manufacturers with supply networks extending into China, the new requirements add another layer of complexity as companies seek to comply with both UK environmental legislation and Chinese regulatory requirements.

Due Diligence Requirements Expand

The UK’s new framework requires businesses to strengthen supply chain transparency for forest-risk commodities, including products derived from timber and fibre.

The regulation follows a broader global trend toward stricter environmental due diligence requirements, similar to the European Union Deforestation Regulation (EUDR), which has already prompted packaging producers to enhance supply chain traceability and sourcing practices.

Companies using paper-based packaging, corrugated products and timber-derived materials are expected to increase documentation covering the origin of raw materials and supply chain compliance.

China Supply Chains Face Additional Complexity

Industry observers note that businesses sourcing forest products from China may encounter additional compliance challenges.

China’s Decree 834, introduced in 2026, places restrictions on certain supply chain information gathering and business investigations.

As a result, companies operating across both jurisdictions may face competing regulatory expectations when collecting supplier information required for environmental due diligence.

According to industry estimates, the UK imports approximately £777 million (US$1.03 billion) worth of timber and wood-based products from China annually, including more than half of its plywood imports.

This makes China an important supplier of wood and fibre-based materials used across the packaging industry.

Packaging Companies Reassess Supply Chain Risk

The new requirements are expected to encourage packaging companies to strengthen supply chain risk management.

Industry recommendations include:

• Conducting comprehensive supplier risk assessments
• Improving traceability of timber and fibre sourcing
• Monitoring regulatory developments
• Strengthening compliance documentation
• Evaluating alternative sourcing strategies

For many businesses, supply chain transparency is becoming a strategic capability rather than solely a regulatory obligation.

Compliance Costs May Affect Smaller Businesses

While large multinational packaging companies have already invested in traceability systems to prepare for regulations such as EUDR, smaller businesses may face greater financial pressure.

The UK requirements apply to businesses operating in Great Britain above specified turnover thresholds, potentially increasing due diligence responsibilities for a wider range of companies throughout the packaging supply chain.

Implementing supplier verification systems, geographic traceability tools and ongoing compliance monitoring may require additional investment, particularly for companies with complex international sourcing networks.

Diversification and Recycled Fibre Gain Attention

As regulatory requirements continue to evolve, some packaging producers are evaluating alternative sourcing strategies.

Potential approaches include:

• Expanding recycled fibre use
• Diversifying timber supply sources
• Increasing certified material procurement
• Strengthening regional supply chains

Greater reliance on recycled paper and recovered fibre could reduce dependence on virgin forest resources while supporting broader circular economy objectives.

Supply Chain Transparency Becomes a Strategic Priority

For the packaging industry, the latest UK deforestation requirements reinforce the growing importance of supply chain transparency, environmental due diligence and responsible fibre sourcing.

As governments introduce stricter sustainability regulations worldwide, packaging manufacturers are increasingly balancing regulatory compliance with operational efficiency, cost management and long-term supply chain resilience.

Last Updated on 31/07/2026 by Jota Machinery