Germany's deposit return scheme (DRS), known locally as Pfand, has become the backbone of a recycling system that reports a 99 per cent rate for used aluminium beverage cans — the highest among the packaging materials tracked in the country. An International Aluminium Institute (IAI) study cited in the coverage places aluminium cans at the top of Germany's packaging recovery, ahead of a 95 per cent rate for PET bottles and 81 per cent for glass bottles, within a European recycling record reported at 76.3 per cent overall.
A system built on a refundable deposit
The current single-use beverage deposit system took shape in stages. A mandatory deposit requirement was decided in 2003, and in 2005 retailers and the drinks industry jointly established Deutsche Pfandsystem GmbH (DPG) to build a standardised framework for implementing it. The nationwide DPG system for single-use beverage packaging began operating in May 2006, supported by an extended take-back obligation that took effect on 1 May that year. The aim was an efficient system with common standards while allowing retailers, drinks companies and other market participants to manage their respective roles.
Consumers pay a EUR 0.25 (USD 0.28) deposit on eligible single-use beverage containers and recover it when they return the empty packaging through an accepted collection point. Retail take-back, reverse-vending machines and standardised container identification have helped make returns part of routine shopping. DPG material indicates the system handles around 20 billion containers annually, making it the largest one-way deposit-return system in the European Union, with more than 1,000 companies affiliated as participants and partners.
How the deposit strengthens aluminium recycling
The main advantage for the aluminium industry is not only the number of cans returned, but the creation of a reliable, dedicated stream of used beverage cans that enters organised collection and recycling channels instead of being lost in mixed waste. The refund gives consumers a direct financial reason to return containers; retail take-back and reverse-vending machines make the process convenient; and container recognition and standardised identification help separate eligible packaging into dedicated streams. Germany's system therefore provides a substantial, recurring flow of packaging for recovery and helps limit material loss by keeping eligible containers out of ordinary disposal routes.
Industrial capacity behind collection
Germany's collection performance sits alongside a sizable recycled aluminium industry. The supplied material estimates national recycled aluminium capacity at around 700,000–720,000 tonnes a year. Novelis operates its Nachterstedt facility, described in the material as the world's largest aluminium recycling facility, with the capacity to process up to 400,000 tonnes of aluminium scrap annually. Hydro-owned WMR Recycling GmbH in Dormagen supplies technology-driven sorting equipment and can sort 36,000 tonnes of aluminium scrap per year using X-ray transmission and other sorting technologies. Trimet Aluminium SE has also expanded its Gelsenkirchen recycling facility, raising production capacity by 20 per cent to 80,000 tonnes of recycled aluminium.
Two decades of the deposit scheme
The scheme's 20-year milestone was marked at anniversary celebrations in Berlin on 17 June 2026. The European Commission and Germany's Federal Environment Ministry highlighted its contribution to the circular economy. EU Commissioner for the Environment Jessika Roswall said all packaging — whether glass bottles, plastic bottles or aluminium cans — should be sent for recycling to increase efficiency, reduce waste and protect the environment. Antje von Broock, Head of the Department for Circular Economy, Air Pollution Control and Chemical Safety at the Federal Environment Ministry, said the deposit-refund system makes a very important contribution to the circular economy today. DPG Managing Director Susanne Kürschner pointed to the system's development over time, noting the organisation and its partners had maintained its stability while making it "more efficient – resilient, future-proof and scalable."
Germany's DRS operates alongside broader packaging collection arrangements, including household sorting through the Dual System, commonly associated with the Grüner Punkt. The deposit scheme provides a dedicated route for eligible single-use beverage containers, while other packaging remains subject to the relevant collection and compliance arrangements. As Europe looks to strengthen packaging circularity, Germany's two-decade record offers a practical example of how collection systems can connect consumer behaviour with aluminium can recycling.