SCHÜTZ Germany (HQ)

CIRCULAR ECONOMY 
IN INDUSTRIAL PACKAGING 

Companies today are expected to reduce their carbon footprints. One possible way of achieving this goal is the consistent use of industrial packaging designed for circular material flows. This packaging can play an important role in promoting collection, reuse and recycling throughout the supply chain. This page provides information about the choice of industrial packaging that is available, details of the European Union’s framework conditions for packaging manufacturers, and how companies can establish and maintain an efficient packaging cycle.

CIRCULAR ECONOMY IN PACKAGING: 
The European Union defines the regulatory framework.


One of the starting points for industrial companies seeking to cut carbon emissions and achieve their sustainability goals should be packaging. As resources become increasingly scarce and expensive, there is also an increased focus on recycling and reconditioning. With Regulation (EU) 2025/40 on packaging and packaging waste, the European Union has established targets and requirements for reuse, recycling and the use of recycled content. The Regulation entered into force on 11 February 2025 and generally applies from 12 August 2026.

What functions does packaging perform? 


Depending on the area of application, packaging performs different functions. Essentially, packaging ensures the efficient distribution of goods. A range of different types of packaging is used to transport goods of different classes from the point of origin to the consumer. Industrial and bulk hazardous goods packaging in particular protects the environment from exposure to hazardous products and, thanks to the stable construction, also protects the goods that are being transported.

In the B2B and B2C sectors, packaging also serves to provide information and can be used for advertising purposes. Using printing and labelling, companies can communicate information to downstream users or consumers. 

Packaging also fulfils technical application functions. With the right dimensions and a modular design, for example, packaging can help to make optimum use of freight space.


What types of packaging are available?

Packaging comes in many shapes, materials and sizes. It can be classified in different categories, depending on the area of applicationand where it is being used

  • Sales packaging 

    Sales packaging enables and facilitates the transfer of goods to downstream users and consumers. They are divided into the three subcategories – shipping packaging, service packaging and product packaging – which are distinguished as follows:


    Shipping packaging


    • Used for dispatching products
    • Indirect transfer of the goods 
    • Disposal of the used shipping packaging is the responsibility of the user
    • The most frequently used types include bags, cartons and folding boxes
    • Often includes additional materials such as bubble wrap, sticky tape and plastic bands



    Service packaging 


    • Packaging that companies hand out directly to the consumer
    • For example, to-go cups, pizza boxes or paper bags




    Product packaging 


    • Protects the goods inside the packaging and extends their shelf life
    • Sold direct to the consumer 
    • Can provide information on specific contents or product benefits; branding is usually featured on the outside of the packaging
    • Important advertising and communication space used by producers to draw the attention of consumers
    • Disposal of the used packaging is the responsibility of the consumer
    • Typical examples: yoghurt pots, jam jars
  • Retail packaging

    Retail packaging is the outer packaging that covers the sales packaging as a protective second layer and is delivered directly to retailers. As well as its protective function, the surface of this packaging is also used to display information or advertising messages. 

  • Transport packaging

    Transport packaging protects goods from exposure and damage during transport and storage. This type of packaging facilitates shipping and serves to ensure that the goods are protected. Examples of transport packaging include transport pallets and stretch films.

  • Industrial packaging 

    Industrial packaging is used to ship goods between the manufacturer and the company using the product. The right industrial packaging allows goods to be stored and transported safely, easily and swiftly. This type of packaging requires less material than sales packaging because less space is required for advertising and information.



    Typical examples of industrial packaging:



    •  Intermediate Bulk Containers (IBC)
    • Jerrycans
    • Steel and plastic drums
    • Box pallets
    • Buckets
    • Sacks



    Due to their universal applicability, these containers are used in a wide range of industries, including pharmaceuticals and chemicals, the construction sector and the food and beverage industries. This type of packaging, often with a large volume capable of holding up to 1,250 litres, plays a central role in the global movement of goods. For hazardous goods, this packaging also helps to protect the environment.


    All around the world millions of transport containers are used every day to safely transport and store a wide variety of filling products. These industrial packaging solutions are essential, indispensable components in the supply chain, especially for hazardous substances

Historical overview: How packaging has evolved over the years


 Over the decades, manufacturers have continuously developed and improved their industrial packaging. Until the beginning of the 20th century, glass was the preferred material for transporting chemicals. Gradually, steel drums took over and replaced glass entirely.

In the mid-1960s, the plastic drum was introduced. With its low weight and good resistance to chemicals, this type of industrial packaging quickly gained acceptance.

In the 1970s, the first Intermediate Bulk Container (IBC) developed by SCHÜTZ combined all the advantages of steel and plastic drums. The container had an integrated pallet for better protection and stability, and the product was a hit with customers and users alike. Compared to conventional cylindrical drums, its innovative footprint ensured significantly better space utilisation during transport and storage. The IBCs were also much easier to handle with a forklift truck or pallet truck.

Since the invention of the IBC, industrial packaging manufacturers have devoted significant effort to further optimising the design. For example, over the years, wall thicknesses and the weight of the overall system have been significantly reduced.

Reusing products is the cornerstone of an effective circular economy. Long before collection systems for product packaging were introduced in Europe in the early 1990s, SCHÜTZ was already taking back industrial packaging from the user. The company continues to have extensive experience in collection, recycling and reuse.

REUSE AND RECYCLING AS ELEMENTS OF THE CIRCULAR ECONOMY


Reusable and recyclable packaging is now an important component in the global movement of goods. Demand for these solutions is expected to continue to rise, particularly in the coming years, as consumers, manufacturers of consumer goods and retailers are increasingly interested in packaging containing recycled material and in reusable packaging. According to the Statista report “Sustainable Consumption 2021”, one in two consumers is changing their consumption behaviour to be more sustainable. On the path to climate neutrality, businesses cannot avoid weighing up the environmental balance of their packaging materials, both across intralogistical processes and in worldwide shipping.


The most effective solution is to take an integrated approach along the entire value chain. Packaging solutions designed for material efficiency, reuse and recycling do not have to mean compromising on functionality or cost-effectiveness. On the contrary, high-quality packaging can help to ensure that industrial packaging meets the applicable legal requirements.

Current legislation requirements


The legal requirements for the production and use of packaging are continuously being tightened, and businesses must additionally comply with regional regulations. In Regulation (EU) 2025/40 on packaging and packaging waste, the European Union has established requirements for recycling, reuse and the use of recycled content in plastic packaging. These requirements are influencing demand for packaging solutions containing recycled material.

WHAT MEASURES CAN REDUCE THE ENVIRONMENTAL IMPACTS OF PACKAGING?

In today’s manufacturing world, the environmental compatibility of packaging is both a quality feature and a competitive advantage, putting the focus in packaging production on recycling and the reusability of products. To reduce material use and packaging waste throughout the supply chain, it can be worthwhile investing in effective collection, reuse and recycling systems.


To date, there is no precise definition of the criteria that make packaging sustainable. Some objectives can even be mutually contradictory; for example, reusable bottles can reduce the need for new packaging, although transporting them may generate additional carbon emissions.


It depends on the intended application whether the packaging is single-use or reusable, and whether it should be made of recycled plastic or cardboard. For example, the safety and sustainability requirements in the chemical or pharmaceutical sector demand very high packaging quality. For the transport of chemicals, IBCs with plastic inner bottles are particularly suitable as plastic is usually resistant to chemicals. 


  • HOW CAN INDUSTRIAL PACKAGING PRODUCTION SUPPORT CIRCULAR MATERIAL FLOWS?

    Sustainability means that all structures and processes consistently work together to combine environmental and social responsibility. Taking the entire packaging life cycle into account, including material use, collection, reuse and recycling, allows businesses to combine environmental and economic objectives.


    This is where the principle of the circular economy begins. An ecological packaging cycle is based on three principles: 


    1. Use recyclable or recycled raw materials in the production of packaging. 
    2. Develop products with an optimised circular economy in mind. The design should be adapted to ensure that the individual components can be recycled. 
    3. Recycle materials efficiently through optimised logistics (supply chain).


    With the aid of state-of-the-art manufacturing technology, research and development, companies can consistently reduce the weight of their packaging and thus conserve resources. The reduction in energy and materials should never compromise the full functionality of the packaging.

The circular economy of industrial packaging and why it matters 

The circular economy is an important approach for making industrial packaging more sustainable. A fully functional packaging cycle can help to reduce the carbon footprint of packaging. The actual contribution depends on factors including the packaging type, transport distances and number of use cycles.

The basic requirement for the circular economy is packaging that can be recycled. In other words, the materials must be recyclable so that they can be used again as raw materials to make new packaging. This requires sorting and recycling processes that break the used packaging down into its individual components and efficiently recycle them.

For the circular economy to work, another factor is required: emptied industrial packaging must be returned to the cycle by the user. This ensures that there is a sufficient quantity of materials available for plastic recovery and recycling, which in turn can be used to make packaging with a content of recyclate.

Recyclate and its significance for industrial packaging


The use of plastic recyclate in industrial packaging is one of the main ways for companies to achieve their sustainability goals in the area of packaging. As a result, material cycles in plastic packaging are particularly successful. The plastic HDPE from IBCs or drums can be reconditioned using a variety of cleaning and treatment processes and then reused to produce new packaging.

More and more companies are using recycled plastic in packaging to reduce the need for newly produced plastic. Accordingly, the demand  for IBCs and drums with a higher proportion of recycled plastic is rising. Currently, however, the necessary quantities of recyclate are often not yet available to meet demand fully and cost-effectively. Manufacturers are dependent on users feeding their emptied packaging back into the material cycle

 

Practical example: 

Packaging Lifecycle Management by SCHÜTZ

In order to reduce the carbon footprint of industrial packaging, SCHÜTZ has introduced a Product Lifecycle Management concept. This is based on the following four pillars:

  • EFFICIENT USE OF RESOURCES


    Continuous optimisation and performance enhancement of packaging through the use of advanced manufacturing processes and extensive technological know-how.

  • EASY AND FAST COLLECTION

    Worldwide collection of IBCs and drums  after emptying.




  • RECONDITIONING & REUSE

    Reconditioning of emptied packaging according to site-specific environmental and safety standards. Each IBC steel grid and the pallet is cleaned and repaired in a  complex reconditioning process for the next use.


  • MATERIAL RECYCLING & US OF RECYCLATE


    The inner bottles replaced during reconditioning and collected plastic drums are recycled. The recyclate obtained this way is used again for plastic packaging components and other items.








Recyclate in IBC inner bottles and drums

SCHÜTZ has refined the material recycling processes to a degree that different grades of HDPE can be recovered, with low odour and in a uniform colour, depending on the desired application. The recyclate can then be used for the production of plastic packaging components as well as for inner bottles.

Using state-of-the-art 3-layer extrusion blow moulding processes, SCHÜTZ also uses 30% high-quality, natural-coloured recycled material to make the inner bottles and drums in its Green Layer product series. The recyclate is used exclusively in the middle layer of the three-layer inner bottles. This means that both the surroundings and the filling products only come into contact with virgin material. The products in the Green Layer series are suitable for numerous applications. They combine the intended safety characteristics and a low operating weight with 30% recycled content in the three-layer inner bottles and drum bodies.

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