How does the German Pfand system work?

If you plan to live, work or build a business in Germany, you will meet the Pfand deposit on day one. This article explains how the German Pfand system works in practice and why it matters for consumers and companies. In a few minutes, you will know what carries a deposit, how to get it back, and what importers and retailers must do to comply.

German Pfand System explained for internationals 

The German Pfand System starts with a simple idea: you pay a small deposit on eligible drink containers and get it back when you return them. Germany’s deposit-return scheme covers most single-use plastic bottles and cans (100 ml–3 L) at 0.25 EUR per item, while refillable bottles typically carry 0.08 EUR – 0.15 EUR. Return happens at supermarkets and shops via reverse-vending machines or staffed counters. The combination of clear labelling and a meaningful deposit helps Germany achieve exceptionally high return rates for single-use containers.

Why you should care: if you are relocating executives, opening offices, or importing beverages, Pfand touches payroll kitchens, procurement, office waste contracts, and crucially your compliance obligations if you put packaged drinks on the German market. The system sits within the Packaging Act (VerpackG), Germany’s extended producer-responsibility law, meaning the “first distributor” (manufacturer or importer) bears legal duties for labelling, registration and financing recycling.

What carries a deposit and how much?

DPG stands for Deutsche Pfandsystem GmbH, the non-profit operator of the one-way (single-use) deposit scheme. The blue DPG mark and matching barcode/GTIN enable machines to identify eligible packaging and trigger the refund.

German Pfand System: consumer touchpoints, costs and practical tips for life in Germany

The German Pfand System is straightforward once you know the flow. Here is the day-to-day view of the process.

How to get your deposit back (quick steps):

1. Check the mark. Look for the DPG logo and a scannable barcode on single-use containers; refillables are returned without the DPG logo and usually have “Mehrweg” indications.

2. Use a return machine. Feed empties label-up; the machine scans and prints a voucher. Hand the voucher to the cashier to receive cash or a bill credit.

3. Know the amounts. Expect 0.25 EUR on single-use bottles/cans; 0.08 EUR  to 0.15 EUR on typical refillables. Milk and dairy drinks in single-use plastic bottles have been included since 1 January 2024.

Office and site operations tips:

• Procurement: Prefer Mehrweg where practical (e.g., water and soft drinks in refillable crates) to reduce ongoing deposit cash-flow and align with corporate sustainability KPIs.

• Facilities: Place crate-storage and “empties” bins near kitchens, schedule regular return runs to recover deposits and avoid clutter.

• Events: For sponsored events, include a deposit-return point on-site, brief staff on separating deposit-bearing containers from other recyclables.

• Onboarding: Add this Pfand explainer from Formatera to your relocation handbook.

Performance and policy context: Germany’s deposit-return system is often benchmarked as a global leader, with reported return rates around 98% for eligible single-use containers. This performance is linked to the higher deposit value and dense retail collection network, and aligns with EU circular-economy objectives.

German Pfand System compliance for beverage importers and e-commerce brands

The German Pfand System compliance for beverage importers and e-commerce brands hinges on one concept: if you are the first distributor placing filled, deposit-obligated single-use beverage packaging on the German market, you must participate in the DPG system and meet VerpackG duties.

Core obligations (snapshot):

• Register & participate: Join the DPG one-way deposit system, label packaging with the official DPG logo and deposit barcode/GTIN, and integrate your products in the central DPG database. This ensures machines can recognise and redeem your containers.

• Extended Producer Responsibility (EPR): Packaging placed on the German market also carries EPR requirements under the Packaging Act, covering licensing with a dual system for non-deposit packaging streams and proper data reporting.

• Deposit scope updates: From 1 January 2024, deposit covers milk, mixed-milk and drinkable dairy productsin single-use plastic bottles (0.1–3.0 L). Beverage cartons remain out of scope.

• Retail take-back: Retailers who sell eligible drinks must accept return, large grocers typically provide reverse-vending machines, which generate vouchers redeemable at checkout. bottlebill.org

Why this matters commercially: high return rates are sustained by a 0.25 EUR deposit on single-use containers, a level widely cited as key to Germany’s performance. Non-compliance risks fines, delisting and reputational harm. Build Pfand into product development, labelling workflows, ERP item masters (GTINs), and logistics from day one.

Considering Germany for your next launch? Our team supports entity setup, and compliance alongside operational topics. See company formation in Germany for practical next steps.

German Pfand System risk checklist for brand owners 

This simple German Pfand System risk checklist will help you avoid costly missteps:

• Scope mapping: Confirm each SKU’s deposit status (material, format, size, beverage type) and whether it is single-use (Einweg) or refillable (Mehrweg). Update master data accordingly.

• DPG participation: Secure DPG participation, approved labelling, and GTIN registration before launch; test sample scans on common reverse-vending machines.

• 2024 dairy inclusion: If you sell milk or dairy drinks in plastic bottles, apply the 0.25 EURdeposit and DPG labelling; note that cartons are excluded. Train customer service to handle consumer questions.

• Retail readiness: Ensure take-back and clearing processes are understood by distribution and retail partners so deposit flows and reconciliation are smooth.

• Governance: Integrate VerpackG and deposit tasks into your ESG and legal calendars (audits, data submissions, label updates) to stay current as rules evolve.