Circular Contracting: Insurance Against Recyclate Shortages

Against this backdrop, the demand for recycled raw materials is likely to increase significantly in the coming years, which could lead to an undersupply of this scarce commodity. With Circular Contracting, EKO-PUNKT now offers companies the opportunity to contractually secure their supply of high-quality post-consumer recyclates. Circular Contracting links the licensing of packaging at EKO-PUNKT, Remondis’' dual system, with the supply of recyclates or recycled raw materials by Remondis in the cycle.

1,615 kilotons of post-consumer recyclates were used to produce plastic packaging in 2021. This corresponds to an average recyclate content of 10.6 percent per packaging. By 2030, this amount would have to increase to 6,052 kilotons to achieve the targets of up to 35 percent set out in the draft European Packaging Regulation (PPWR), depending on the type of packaging. This is the conclusion reached by the consulting and market research company Conversio Market & Strategy in its analysis “Use of Recyclates in Europe 2020 to 2030” published in September 2023, which was commissioned by the IK Industrievereinigung Kunststoffverpackungen. “You don’t have to be a prophet to predict how this will affect the recyclate market,” says Stefan Munz, Head of Innovation and Sustainability at EKO-PUNKT. “Post-consumer recyclates in particular will be in high demand in the coming years. The existing undersupply of this scarce commodity will foreseeably worsen as a result.”

Securing the Supply of Recyclate 

EKO-PUNKT now offers a way for distributors of packaging to protect themselves against future supply bottlenecks with its new Circular Contracting model. It combines the statutory licensing obligation with the contractually secured supply of high-quality post-consumer recyclates, even in the long term. In return for their packaging licensed with EKO-PUNKT, customers receive a corresponding volume equivalent of high-quality recyclable materials to replace the primary raw materials previously used. Companies not only retain control of the raw materials, feed their packaging materials into a genuine cycle, and make a demonstrable contribution to climate and resource protection, but also meet the requirements for the use of recyclates set out in the planned EU Packaging Ordinance (PPWR). “Manufacturers that have been known for years for their highly ecological products are specifically relying on our circular contracting. First and foremost, the popular Bübchen brand,” reports Munz. In general, recyclates are currently particularly relevant for manufacturers in the non-food sector.

Pioneer in Circular Packaging Management 

As Remondis’ dual system, EKO-PUNKT sees itself in a pioneering role in circular packaging management: “In the short to medium term, we want to be the contractual partner for trade and industry when it comes to packaging, offering a complete service with no ifs or buts. Including guaranteed, long-term security of supply with post-consumer recyclates,” says Munz. “We can say this so confidently because we started working towards this goal earlier than others.” Within the Remondis Group, EKO-PUNKT already has access to the input material required for recyclate production. “Where others still have to build up complete structures,” says Munz, “we, as a competence center for packaging, bundle into one offer what we have been practicing in an exemplary manner for years: collecting, sorting, recycling, and making it sustainable.” In addition to licensing and supplying recyclates, EKO-PUNKT also offers testing of packaging with regard to its recyclability and advises on optimizing its eco-design.