Wrap said firms looking to invest in plastics recycling would be able to take advantage of demand for material outstripping supply.

"There has been extensive investment in plastics reprocessing capacity however, the UK still exports a large proportion of the plastics it collects for recycling," said Marcus Gover, Wrap director of market development.

"Given the strong UK demand for high-quality recycled plastics, this represents a great opportunity for UK manufacturers."

This is particularly the case for mixed, non-bottle plastic films and trays that account for just under half of plastic packaging use but lag behind in terms of collection. Less than 5% is currently recycled.

Last month, Wrap launched a £2m loan fund to support investment in mixed plastics recycling.