Sainsbury’s highlights packaging regulation costs running to “tens of millions”

Sainsbury’s has said that new packaging regulations in the United Kingdom are already adding “tens of millions” of pounds to its costs.

According to comments reported by The Guardian and Yahoo Finance, chief executive Simon Roberts identified regulatory changes affecting packaging as one of several cost pressures currently impacting the retailer. The company noted that these are part of wider financial challenges, including inflation, rising wages, and energy costs.

While Sainsbury’s did not specify which measures are responsible, the new Extended Producer Responsibility (EPR) scheme — requiring companies to cover the full cost of managing packaging waste — is widely believed to be a contributing factor. Introduced under the UK’s waste and resources strategy, the framework aims to incentivise more sustainable packaging design and improve recycling infrastructure.

The supermarket warned that these additional regulatory costs could ultimately increase retail prices for consumers if not managed carefully, adding to the pressures already facing the wider grocery market.

Sainsbury’s said it continues to work towards reducing packaging and improving recyclability but warned that compliance costs are becoming a significant burden for large retailers across the sector.