Germany has reached a significant milestone in its pursuit of a circular economy, with the recycling rate for plastic packaging collected through the country’s “Yellow Bag” system climbing to an impressive 68.9% in 2023, according to a joint statement by the Central Packaging Registry (ZSVR) and the German Environment Agency (UBA).
This achievement reflects a dramatic improvement since the enactment of the Packaging Act in 2018, with the recycling rate rising by nearly 27 percentage points in just five years. The result not only surpasses the legal target of 63%, but also reinforces Germany’s leadership in sustainable packaging practices.
A Strong Market for Recycled Plastics
“What is truly remarkable is not just the absolute figure, but the consistency with which we’re exceeding mandatory targets,” noted Dr. Isabell Schmidt, Managing Director for Circular Economy at the German Association for Plastics Packaging (IK). “This confirms the emergence of a robust market for recycled plastics, driven by a packaging industry that’s clearly embracing its role in the circular economy.”
Designing for the Future
One of the key drivers behind this success is the significant improvement in the recyclability of packaging. According to Dr. Schmidt, 80% of consumer plastic packaging in Germany is now designed to be highly recyclable — a shift that allows more material to be effectively reused as a substitute for virgin plastics.
Even as the total volume of plastic packaging decreases, demand for recycled materials continues to grow, underlining the sector’s role as a stable and scalable outlet for high-quality recyclates.
Call for Cross-Sectoral Adoption
Dr. Schmidt also emphasized the need for other industries — such as construction and automotive — to increase their uptake of recycled materials. “While our sector already supplies 80% of all plastics recycled in Germany, other industries must now step up if we are to realize a truly circular economy. The packaging sector is poised to retain recycled materials for its own future use.”
A Model for the Circular Economy
Germany’s progress signals more than a regulatory win — it highlights a systemic shift in how plastic packaging is viewed and valued. With continued collaboration across the value chain, the country is setting a high standard for recycling infrastructure, product design, and market development in plastics circularity.