Key Facts

Germany’s Circular Economy in Numbers

> 1.1 m

people employed in the circular economy

EUR 87.9 bn

gross value added per year

EUR 22.9 bn

export volume (2023)

18 %

share of global circular economy patents

Circular Economy Facts & Figures

  • Strong economic footprint: Germany’s circular economy stands out through its high turnover and role as a large industrial employer, underscoring its structural importance for the economy.
  • Export-oriented market: Germany’s circular economy industry is internationally competitive, with Germany supplying large amounts of circular technologies and secondary raw materials to global markets.
  • Broad industrial backbone: Activities span repair and refurbishment, industrial recycling, plant engineering, and material efficiency solutions across multiple relevant sectors.
  • Technology-driven leadership: Germany’s strong patent position highlights its role as an innovation leader in circular processes and advanced recovery solutions.
     

Opportunities

Germany’s circular economy offers attractive opportunities for both mechanical and chemical recycling projects across a broad industrial base. Both approaches are increasingly deployed to recover valuable materials from end-of-life products, industrial residues, and complex material streams.

Selected industry examples include:

  • Waste & cement / construction recycling

    Recovery and reuse of mineral and material fractions from construction, demolition, and industrial waste streams for use in cement and building materials.

  • Metals & raw materials recycling

    Established and emerging recycling streams for metals and critical raw materials, including applications related to batteries, photovoltaic modules, and wind turbines, supporting industrial supply chains.

  • Plastics & polymers recycling

    Mechanical and chemical recycling solutions for plastics, rubber, and polymer-rich waste streams, including packaging, consumer products, and industrial applications.
     

Success Stories

We have a proven track record in helping international companies of all sizes successfully set up business in one of the world’s most dynamic markets. Find out why renowned international companies chose Germany as a location for their business and how Germany Trade & Invest helped them to settle in Europe’s biggest market. 

Success Story IDs: 

The Australian based company Neometals Ltd. started a joint venture with the SMS group in Germany to demonstrate and commercialize an innovative lithium battery recycling process. The flagship project, Primobius, includes the construction of a showcase demonstration plant. Germany Trade & Invest provided investor support and site selection services to Neometals. 

Germany Trade & Invest spoke to Jeremy McManus, General Manager, Commercial and Investor Relations of Neometals, about the market outlook and the company's decision to start operations in Germany.

Full Interview: Neometals to Tackle Huge European Demand for Battery Raw Materials 

Business Environment

Strong Regulatory Framework

Germany’s circular economy is supported by a comprehensive and increasingly ambitious regulatory framework at both EU and national level. At EU level, the Circular Economy Action Plan and related regulations set binding targets and standards across multiple industries. In Germany, the Circular Economy Act (Kreislaufwirtschaftsgesetz, KrWG) forms the backbone of waste management and recycling legislation. It embeds the principle of product responsibility across the entire life cycle and promotes the shift from waste management to resource management. Additional sector-specific regulations, such as the EU Battery Regulation or the EU Packaging and Packaging Waste Regulation further strengthen demand for circular solutions across its various industries.

Unique Industrial Infrastructure

Germany’s strong industrial base provides ideal conditions for circular economy investments. More than 30 chemical parks and numerous industrial clusters offer specialized infrastructure for chemical recycling processes. Companies benefit from integrated supply and disposal networks, access to chemicalfeedstocks and utilities via pipelines, and reliable energy and logistics infrastructure particularly relevant for material recovery and chemical recycling projects. Link to GTAI chemical park website: Chemical Parks in Germany

Funding & Incentives

Germany offers a broad and competitive range of public funding and incentive schemes supporting industrial investments, innovation, and sustainability projects. Programs are available at EU, federal, and state level and can support activities such as technology deployment, scaling of circular processes, energy and resource efficiency measures, and R&D. Investors can combine different instruments and benefit from tailored support depending on project scope, location, and technology focus. Link to GTAI Funding & Incentives website: Incentive Programs in Germany