PET in Europe: the path to circularity

PET plastic is lightweight, recyclable, and already a crucial part of Europe’s circular economy.

Europe currently collects 75% of all PET plastic bottles for recycling (ICIS, 2024) – but we can do better. The EU target of 90% by 2029 is within reach, but requires a collective and carefully coordinated effort. Our goal is to make sure that this happens.

In the transition to a more sustainable future, packaging plays a central role. This is the logic behind the EU’s Packaging and Packaging Waste Regulation (PPWR), which requires packaging materials of the future to be circular by design, fully recyclable, and reusable (European Commission, 2025).

Not all packaging is the same – and not all plastic is, either. PET plastic is unique in its fully recyclable and reusable design, and it is already recycled at scale across Europe. Some countries such as Germany boast some of the highest PET recycling rates in the world, and the material is itself the world’s most recycled plastic. Using PET plastic eliminates the trade-off between circularity, practicality and cost incurred with other plastics and packaging materials.

Fully recyclable and reusable packaging materials like PET are central to solving Europe’s waste problem and building a truly circular economy. This is all possible thanks to PET’s robust construction and specialised material composition, making it easy for manufacturers to clean and refill. These PET bottles can be reused up to 25 times before being recycled into new products (ALPLA, 2025). This is a closed-loop circular economy for PET packaging in action.

What is the industry doing to reduce waste?

In addition to collection and reuse efforts, the PET industry is also working to reduce overall virgin PET consumption. It is estimated that the volume of recycled PET (rPET) used for bottle production increased by 50% between 2020 and 2022, with some producers already commercialising bottles made entirely from 100% rPET (ICIS, 2024).

Producers are also investing in design solutions to improve the circularity of PET. They’re exploring label adhesives that dissolve in cold water, labelless bottles, monomaterial packages with the bottle and cap also made of PET, digital watermarking and the deployment of AI for sorting waste (ICIS, 2024). Another area of focus is weight optimisation: lightweighting techniques, especially in bottle necks, have shown reductions of 16-52% in virgin PET consumption (ICIS, 2024).

Progress is also being made among recyclers. Machinery manufacturers are investing heavily in research and development to enhance recycling infrastructures – for instance, by integrating granulators in PET recycling lines, which are improving the efficiency of the bottle-to-pellet reprocessing (ICIS, 2024).

Fully recyclable and reusable packaging materials like PET are central to solving Europe's waste problem and building a truly circular economy.

There are two effective routes to closing the loop on PET plastic packaging

Recycling

In recent years, social media and news headlines have amplified a wave of misinformation about recycling. However, the data tells a different story. In Europe, recycling is highly effective and a cornerstone of the circular economy. Efficient recycling programmes also allow for a strong supply of recycled PET (rPET), a highly sustainable material whose production will be essential for the EU to reach its 2030 target of 30% recycled content in beverage bottles (ICIS, 2024).

There are two effective ways to improve EU collection rates even further:

  1. Deposit Return Schemes (DRS) for PET bottles
    Deposit Return Schemes (DRS) are programmes through which consumers pay a small amount when purchasing a drink, which is refunded when they recycle the used packaging at a designated collection point. These schemes are highly effective at encouraging recycling and reducing plastic bottle waste. As of June 2026, DRS schemes have been implemented in 19 European countries. Germany has the world’s largest and highest-performing deposit return scheme, with a 98% return rate on PET plastic bottles and other drink containers (TOMRA, 2025). Other EU countries with DRS include Sweden, Ireland, Hungary, Romania and Slovakia – all of which also boast high return rates (TOMRA, 2025).
  2. Separate collection schemes for PET bottles
    Separate collection schemes for PET can be just as effective as DRS. In Belgium, 84% of PET bottles are collected for recycling without a DRS system through the country’s ‘blue bag’ (PMD) collection for plastics, metals, and drink cartons (ICIS, 2024). Belgium’s high collection rate has also led to the wider availability of recyclates, the plastic pellets used as foundational ‘building blocks’ in products made using recycled content.
    The success of both approaches depends on sustained investment in modern sorting and recycling facilities for PET plastics across Europe. Continued funding for these plants and support for new innovations in recycling technology are both crucial to for Europe to achieve a truly circular economy.

Reuse

The second route to closing the loop is reuse. The PPWR makes clear the need for packaging materials to offer options for reuse that are safe, sustainable and economically viable.
The good news is that reusable PET packaging is already a reality. Reusable PET bottles are thicker than ordinary PET bottles and can be found in supermarkets in Germany and Austria. Compared to reusable glass bottles, reusable PET bottles are significantly lighter, making them a less carbon intensive material over their life cycle.
Consumers place their crates of reusable PET bottles at collection points and receive a deposit back, similarly to DRS. Once collected, the PET bottles undergo a thorough cleaning process before being refilled and returned to supermarkets in the same bottle.

What is the industry doing to reduce waste?

In addition to collection and reuse efforts, the PET industry is also working to reduce overall virgin PET consumption. It is estimated that the volume of recycled PET (rPET) used for bottle production increased by 50% between 2020 and 2022, with some producers already commercialising bottles made entirely from 100% rPET (ICIS, 2024).

Producers are also investing in design solutions to improve the circularity of PET. They’re exploring label adhesives that dissolve in cold water, labelless bottles, monomaterial packages with the bottle and cap also made of PET, digital watermarking and the deployment of AI for sorting waste (ICIS, 2024). Another area of focus is weight optimisation: lightweighting techniques, especially in bottle necks, have shown impressive weight reductions between 16% and 52% (ICIS, 2024).

Progress is also being made among recyclers. Machinery manufacturers are investing heavily in research and development to enhance recycling infrastructures – for instance, by integrating granulators in PET recycling lines, which are improving the efficiency of the bottle-to-pellet reprocessing.

‘A circular, safe and convenient packaging material’

The packaging materials of tomorrow have to tick many boxes. EU policy should support materials that are circular by design, easily recyclable and reusable, safe, energy-efficient and convenient to use. PET plastic ticks all the boxes. We encourage legislators to support European PET manufacturers also in approaching new technologies in Chemical Recycling  and promote a profitable market for recyclates and reusable options.

Circular packaging materials like PET plastic must be part of the solution if we want to deliver on the EU Green Deal. But we need a clear and forward-looking regulatory environment to realise the circular economy and safeguard European competitiveness.