Now Also Milk Drinks: Mandatory Deposit for Bottles

The introduction of the mandatory deposit for milk and dairy products in single-use plastic bottles in Germany from 2024 marks a significant legal innovation. It is the result of the latest amendment to the Packaging Act. The legal amendment extends the existing mandatory deposit, which has applied to all beverage cans and almost all plastic bottles since 2022, to dairy products. There was an extended transitional period for this packaging, which has now ended. 

Since 1 January, the mandatory deposit of 25 cents has applied to single-use plastic bottles with a volume of 100 ml to 3 litres for milk and milk-based mixed drinks with a milk content of over 50 percent as well as other ready-to-drink milk products. This includes products such as mixed milk drinks, cocoa, mixed coffee drinks and drinking milk in PET bottles, kefir, yoghurt drinks and ayran, whereby milk drinks in tetrapacks and yoghurts in cups are exempt from this regulation.

The change means that consumers will have to return empty bottles to the supermarket to get their deposit refunded. Previously, this packaging was typically disposed of in the yellow bag or yellow bin.

Higher Recycling Rates

The German government and environmental protection organisations emphasise the positive effects of the mandatory deposit on the environment and recycling. "Ideally, we need to move away from single-use products. Deposit bottles are one way to achieve this. Almost 100 per cent of them are returned or collected. Single-variety collection enables high-quality bottle-to-bottle recycling. After all, more than 90 per cent of the PET bottles collected are recycled," said the German government.

Deutsche Umwelthilfe (DUH) welcomes the extension of the recycling ordinance as an important step towards protecting the environment and resources and strengthening recycling. At the same time, the environmental and consumer protection organisation still sees a considerable gap in the deposit regulation and is calling on Federal Environment Minister Steffi Lemke to make rapid improvements. For example, a one-way deposit should also be introduced on drinks cartons, such as those from market leader Tetra Pak. 34 per cent of these would not end up in the yellow bag for recycling, but in residual waste, the paper bin or in nature. 

Mandatory Deposit Unnecessary?

In addition to the ecological benefits, extending the mandatory deposit also brings challenges, particularly in terms of hygiene. This is because residues of dairy products in the returned bottles can cause unpleasant odours and the formation of microorganisms. "Even now, some return systems don't look particularly appetising and will probably smell even more intense in the future. This is because the relatively high viscosity of high-fat dairy products often leaves small amounts of residue in the containers and provides a good breeding ground for microorganisms. And not all deposit containers have a lid that would solve this hygiene problem," says the Bavarian Milk Producers' Association.

There was also criticism of the potential increase in consumer prices. The milk producer association and other industry representatives expressed concerns about possible "price shocks" and consumer acceptance, as the additional costs may be passed on to customers and this could lead to a decline in willingness to buy. The association argued that the previous disposal system had been sufficiently effective.

However, not all milk producers see only negative effects from the mandatory deposit. While the implementation of the requirement for the linked cap generated high costs, the Berchtesgadener Land dairy hopes that sales will have a positive impact on its product range. This is because the composite drinks packaging used is not affected by the mandatory deposit. The dairy has been working hard for two years to prepare for these changed conditions. Following the official commissioning of a returnable bottle system in June 2022, the previous system was dismantled, the building demolished and a new production building erected on the same site.

The effects of the mandatory deposit are also being felt in the recycling industry. The RCS Group, a leading supplier of recycled PET in Germany, is facing new challenges in order to guarantee the quality of the recycled material. Investments in sorting technology and software adaptations were necessary in order to process the new materials effectively and maintain a high recycling quality. Nevertheless, the company is confident that the new regulations will help to promote a more sustainable use of resources and reduce the amount of packaging waste.

Despite the challenges associated with this measure, such as hygiene concerns and fears regarding price acceptance among consumers, the long-term goal is clear: to promote a circular economy that focusses on resource efficiency and sustainability.