The Welsh food and drink industry faces a pivotal period ahead – one defined by the twin pressures of sustainability demands and significant regulatory change. For producers and manufacturers operating in Wales, the coming years will require proactive planning, strategic investment and a close eye on emerging legislation if they are to remain competitive and compliant.

Wales has long punched above its weight when it comes to food and drink. From award-winning food producers to global suppliers, the industry has consistently delivered throughout turbulent markets and geopolitical challenges. Two months into the new financial year, we naturally find ourselves asking what lies ahead? 

Sustainability at the forefront

Without doubt, sustainability will continue to take centre stage. Welsh producers are increasingly embracing regenerative farming, reduced food miles and circular supply chains. With a rich agricultural landscape, the opportunity for Wales to lead the UK on farm-to-fork transparency is significant – though the cost to this remains a challenge and one which many food & drink producers are having to factor in amongst increasing costs and food inflation.

Wales's deposit return scheme: What we know so far

Following Senedd approval, one interesting focus area over the last couple of months has been the deposit return scheme (DRS) which is set to launch in Wales in October 2027. The aim of this scheme is to improve on the go recycling, cut litter and create a co-ordinated approach to recycling. This all leads back to green growth with the concept of incentivising consumers to return containers to designated return points using a barcode system. The full scope of the scheme and how it will be fully implemented remains to be seen in Wales. 

However, we can answer the following key questions:

When does the DRS start and how will it be managed?

It is set to launch in Wales in October 2027, and will be managed by a Deposit Management Organisation (DMO), a not-for-profit private body operating under the Deposit Scheme for Drinks Containers (Wales) Regulations 2026.

How will the Welsh scheme differ from the schemes in England and Scotland?

The scheme will be different to that being run in England and Scotland. Specifically, Wales will include single-use glass bottles as part of the Wales DRS. This means the scheme will encompass PET plastic bottles, aluminium cans, steel cans and glass bottle drinks from implementation.

Who will be responsible for enforcing the DRS in Wales?

The Welsh Government will oversee scheme performance with Natural Resources Wales managing compliance and enforcement of DRS Regulations. The DMO, once appointed, will have statutory powers and obligations to manage the operation of the DRS across Wales. 

What should producers be doing now?

If you are a food and drink producer or manufacturer in Wales, the DRS is a scheme that will need to be closely followed and factored in. With the application period for DMOs set to expire on 2 June 2026, we eagerly await the results and next steps in the preparation for implementation. 

Now is the time to review your product portfolio, assess packaging formats, and consider how your supply chain may need to adapt. Engaging with industry bodies and seeking legal and regulatory advice at this stage will place you in a stronger position as implementation approaches.