The UK Government confirmed in June 2026 that businesses trading in forest risk commodities now require a mandatory due diligence framework to prove their supply chains are not contributing to illegal deforestation.
This change is of particular concern for companies whose supply chains rely on timber, paper, and other fibre-based products, which are vital for the packaging industry
For consumer goods businesses with supply chains in China, the ruling exposes them to legislative penalties from Chinese regulators under Decree 834, which places limitations on supply chain visibility. Conflict between the heightened due diligence observation obligations required by Defra and the limits on information gathering specified by Decree 834 will likely leave businesses struggling to achieve either policy. The EUDR is already impacting consumer packaging companies who rely on forest and land-based inputs.
Large UK-based packaging producers like DS Smith have already been affected by the EUDR, which required the company to adapt its supply chains and sourcing operations to achieve the new transparency standards required. The new UK deforestation legislation will now pose a similar threat to companies with supply chains using timber, paper, and fibre-based products in China. The UK imports an estimated £777m ($1.03bn) of timber and wood-based items from China, which includes 53% of all plywood supplies according to the 2023 UK Forestry Research report.