Switzerland Rethinks Its Plastics Economy

Switzerland is beginning to rethink how it deals with plastic waste. For years most plastics ended up in incinerators despite the country’s image of efficient waste management. Now new collection systems, rising public awareness and a wave of cleantech innovation are creating the conditions for a more circular approach. With close to 1 million tonnes of plastics consumed each year, even modest changes in recycling practice carry economic and environmental weight. What was once considered an intractable problem is becoming a field of industrial opportunity.

A long standing gap between consumption and recycling

For decades Switzerland recycled only a small portion of its plastic waste. National data show that about 9 percent was recovered while roughly 83 percent was burned for energy or cement production. The country generated about 790’000 tonnes of plastic waste annually, much of it in short lived packaging. Switzerland’s reputation for cleanliness obscured a simple fact. Plastics were not flowing in circles but in a straight line from consumption to combustion. In comparison with several European neighbours, Switzerland lagged behind in creating a true circular plastics economy.

New technologies move into focus

Momentum began to build as municipalities expanded their collection efforts. In 2024 about 9’090 tonnes of plastics were collected under the Bring Plastic Back programme. Yet the most significant shift came from technological innovation. DePoly, a cleantech firm founded in 2020 by scientists with Swiss research backgrounds, developed a chemical recycling process that breaks down PET and polyester waste into virgin grade monomers. The technology can process unsorted and contaminated plastics as well as textiles. It produces raw materials suitable for new manufacturing.

Construction is underway on a showcase plant in Monthey with a planned capacity of 500 tonnes per year. Operations are expected to start in 2025. If successful, this facility could help Swiss industries close the material loop and reduce dependence on fossil based feedstocks.

Market signals from Switzerland and Europe

Annual plastic consumption in Switzerland stands at roughly 1 million tonnes, about 120 kilograms per person. Of the 790’000 tonnes of waste generated, about 660’000 tonnes are incinerated. Only a small proportion is reused or recycled. Across Europe the trend is gradually shifting toward higher recycling rates, especially for packaging. Switzerland’s new technologies and rising collection efforts could help narrow the gap.

European market developments are timely. Demand for recycled plastics is rising as companies face regulatory and consumer pressure to reduce virgin material use. Swiss innovations in chemical recycling therefore arrive at a moment when both domestic and international industries are seeking credible circular solutions.

Why circular plastics matter for Swiss industry

Building a circular plastics economy offers several advantages. Reducing reliance on imported virgin plastics lowers exposure to price swings in fossil markets. New recycling technologies create potential for industrial activity and high value jobs. The Monthey plant illustrates how local employment can grow around new processing infrastructure.
Environmental benefits add further weight. Recycling plastics into raw materials reduces greenhouse gas emissions linked to virgin plastic production and limits pollution from microplastics in soil and waterways. Over time these advantages could strengthen Switzerland’s profile as a centre for green technology and responsible industrial practice.

A pivotal year ahead

The first operational year of the Monthey plant in 2026 will be a decisive test. If the technology proves effective at scale, interest is likely to rise among packaging, textile and automotive firms that depend on PET and polyester. Broader adoption of collection schemes would create a consistent supply of feedstock. Policy developments could accelerate the trend if incentives for recycled content are introduced.

A new wave of startups may emerge to address plastics beyond PET and polyester, such as polypropylene or mixed plastics from construction and electronic waste. Expansion in these areas would widen the base of a circular plastics industry in Switzerland.

Spotlight on DePoly

DePoly, based in Valais, has become one of the most closely watched Swiss cleantech firms. Its technology breaks down PET and polyester waste into virgin grade monomers even when materials are mixed, unwashed or contaminated. The 500-tonne showcase plant in Monthey is expected to begin operation in 2025.

DePoly has gained recognition from investors and was ranked among Switzerland’s most promising startups in 2024. The firm raised CHF 12.3 million in seed funding in 2023 to scale its technology.

Why support matters now

Switzerland is at a moment when technological maturity, consumer expectations and environmental pressure align. Demand for recycled materials is rising and credible recycling technologies are entering industrial deployment. Investors and corporate partners face a chance to help build a new circular industry rather than import solutions later.

CapiWell supports growth stage cleantech startups by helping them secure capital and navigate the path to scale. Startups working on recycling technologies or materials innovation can benefit from dedicated funding strategies and networks that accelerate development. Supporting the sector now helps turn plastic waste into valuable materials and strengthens Switzerland’s position in sustainable industry.

Switzerland is moving away from a linear plastics model dominated by incineration. Emerging technologies and shifting behaviour indicate the beginning of a more circular approach. If progress continues in 2026, Switzerland could position itself as a reference point for circular plastics in Europe, with benefits for the environment, industry and the wider economy.