Recycling Transition Gains Momentum in Switzerland

Despite an economic slowdown and geopolitical uncertainties – such as those resulting from the war in Ukraine – the Swiss packaging industry remains stable overall. However, rising energy and raw material costs and increasing disruptions in supply chains are clearly evident in an economic survey conducted by the Swiss Packaging Institute (SVI). Above all, declining order books and lower capacity utilisation reflect the strain on companies.

On a positive note, the number of employees continues to rise. Around 31 percent of the companies surveyed increased their workforce in 2023 – a slight decline compared to the previous year (37 percent), but a clear sign of structural stability. The proportion of companies reducing their workforce fell from 21 percent in the previous year to just 10 percent. Training activities also remained at a high level: 76 per cent of companies are currently training young talent.

Employment is on the rise, but the shortage of skilled workers remains the most pressing problem. 78 percent of companies report difficulties in finding suitable skilled workers – another increase on the previous year. Positions requiring higher vocational qualifications are particularly affected. The recruitment of academic specialists (13 percent) and trainable employees without vocational qualifications (11 percent) is also becoming increasingly problematic. The shortage of skilled workers is not the only challenge: economic development is also showing clear signs of cooling, particularly in terms of capacity utilisation and order intake.

 

Order Intake Weakens, Profits Remain Stable

Average capacity utilisation continued to decline in 2023. While around 30 percent of companies reported capacity utilisation of over 100 percent in 2022, this figure fell to just under 20 percent in 2023. A quarter of the companies surveyed reported capacity utilisation of less than 80 percent – a significant decline compared with the previous year.

At the same time, only 28 percent of companies reported rising order backlogs, compared with 74 percent two years ago. Companies with stable or growing order books now account for only 72 percent of the total. The trend that has been ongoing for three years shows that the economic slowdown has reached the Swiss packaging industry.

Inflation and volatile raw material prices make it difficult to assess sales figures clearly. Just under 36 percent of companies were able to increase their sales, 33 percent remained at the previous year's level and 31 percent reported declines. In the previous year, almost half of the companies had recorded increases in sales.

Profits are considered a more meaningful indicator: 52 percent of companies reported stable earnings, 25 percent reported rising profits and only 23 percent reported declines. This shows that the industry is relatively resilient despite the challenges it faces.

Sustainability Continues to be the Defining Trend

As in many Western countries, sustainability has also become a key driver of innovation in the Swiss packaging industry – not least due to rising consumer expectations. In 2024, around 72 percent of Swiss consumers wanted size-optimised shipping through customised cardboard box sizes. 68 percent preferred reusable packaging for online orders. Reusable packaging such as shipping bags and boxes (60 percent) and packaging made from recycled materials (68 percent) were also very popular. Expectations for environmentally friendly solutions are thus rising steadily.

 

Switzerland in Search of a Suitable Collection System

In parallel with consumers' increased environmental awareness, politicians are also pushing for new structures for a functioning circular economy. Switzerland is focusing on extended producer responsibility and voluntary industry solutions to strengthen the recycling of plastic packaging and beverage cartons. With the establishment of the industry organisation RecyPac and the launch of a nationally coordinated collection system from 2025, the Swiss circular economy is taking shape. RecyPac brings together manufacturers, retailers, waste disposal companies and recyclers with the aim of establishing comprehensive collection and recycling of plastic packaging and beverage cartons – areas in which no uniform standards existed previously.

In January 2025, collection began in selected pilot municipalities, including Bern, using a chargeable RecyBag. These collection bags are intended to hold all household plastic packaging (except PET beverage bottles, for which a separate system exists) and beverage cartons. Citizens purchase the bags in shops, which covers part of the costs. Additional funding comes from the distributors of the products. The initiative is thus based on the polluter pays principle established in Switzerland in accordance with the Environmental Protection Act (USG) and the Waste Ordinance (VVEA). The Competition Commission (WEKO) approved the system in spring 2024, paving the way for national implementation (Source: Swiss Recycling, 2024).

The aim of RecyPac is to significantly increase the currently low recycling rate in the household sector. At present, this stands at only around 10 percent for household plastics – the majority of which is thermally recycled, i.e. incinerated. Given the nearly 790,000 tonnes of plastic waste generated each year, the potential for material recycling is enormous. At the same time, the new system competes with existing regional collection solutions, such as the privately organised ‘collection bag’ from Bring Plastic Back, which is already available in over 500 municipalities.

Legally, Switzerland is thus moving towards a paradigm shift. Although there is no explicit packaging ordinance as in the EU, the launch of RecyPac effectively introduces extended producer responsibility (EPR). In future, this will not only include take-back and financing, but also joint responsibility for the recycling of packaging. RecyPac stipulates that recycled material should be returned to packaging applications wherever possible in order to close genuine cycles – in line with the planned total revision of the Environmental Protection Act, with which the Federal Council aims to strengthen the circular economy.

While PET, glass and aluminium have been regulated for years with binding recycling targets – at least 75 percent recycling rate in accordance with the Beverage Packaging Ordinance (VGV) – there has been no comparable regulation for mixed plastics and composite materials until now. This is likely to change with RecyPac. Even though the system is voluntary at first, observers assume that it could serve as the basis for broader regulation in the future – especially with a view to harmonisation with the planned EU Packaging Regulation (PPWR), which also provides for EPR obligations.

A key element of the new collection system is transparency: RecyPac wants to disclose traceability, life cycle assessment data and recycling rates – a requirement that many existing solutions do not yet meet. According to industry association Swiss Recycling, the collection should also be socially responsible, for example by involving social institutions in sorting or by introducing a tiered pricing structure for households. In the long term, RecyPac could become the Swiss standard model for packaging recycling – supported by industry, politicians and local authorities.

Author: Alexander Stark