0930 GMT August 19, 2018
The mixture of plastics used in many yogurt pots, ready meal trays and other containers limits the ability of councils to recycle them, BBC reported.
The Local Government Association (LGA), an organisation which comprises local authorities in England and Wales, said that only a third can be reused. The rest get sent to landfill.
It blamed producers for using a mix of polymers, some of them poor quality.
The LGA said the government should consider a ban on low-grade plastics.
According to the LGA analysis, around 525,000 ton of plastic pots, tubs and trays are used by households in the UK every year, but only 169,000 ton of this waste is capable of being recycled.
The LGA, which represents councils in England and Wales, said that some simple tweaks could make a massive difference to this situation.
It points to microwave meals which are often supplied in black plastic material.
However, black is the only color that can't be easily scanned by recycling machines, meaning that process becomes unnecessarily complicated.
Changing the color of these items would significantly increase the amount that could be used again.
"It's almost criminal to think that some of the plastics being used are difficult to recycle, and black plastic is almost impossible to recycle," Cllr Peter Fleming from the LGA told BBC News.
"The only reason we have black plastic being used by manufacturers is that it makes the food look good."
When it comes to punnets of fruit and vegetables many are made from up to three different types of plastic, including polystyrene, which can't be recycled.
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The LGA wants plastics manufacturers to work with councils to prevent materials that limit recycling entering the system in the first place. It is also calling for government to consider banning low-grade plastics, particularly those for single-use items.
"We need an industry-wide, collaborative approach where together we can reduce the amount of material having an impact on the environment," said Cllr Judith Blake, who is the LGA environment spokesperson.
"But if industry won't help us get there, then the government should step in to help councils ensure we can preserve our environment for generations to come."
As well as calling for a ban, the LGA is looking to the government to make plastics manufacturers pay for the costs of collecting and disposing of plastics that can't be recycled.
"Either they can make the change at the front end so their products are easier to recycle," said Fleming, "or they can start to help pay for the disposal."
The BBC contacted the British Plastics Federation which represents manufacturers for a comment but has yet to receive a response.
The LGA report comes hot on the heels of a study from the National Audit Office that suggests that half the packaging reported as recycled is actually being sent abroad to be processed.