The Recycled–Polyethylene Terephthalate (R-PET) market in Germany experienced growth and stability during March 2025. In the first two weeks, prices increased by more than 5%, and in the second half of the month, prices continued to be the same. This growth and consistency in costs were supported by the strong demand from the packaging and textile sectors, along with limited supplies because of reduced imports from the Eastern Europe.

In the first week of the month, R-PET prices increased by over 2%. This growth in costs showed that downstream companies were interested in using R-PET for their productions, with many buyers starting to restock their inventories after following a wait-and-see approach in February. Consistency in feedstock prices, along with uninterrupted post-consumer PET bale availability enabled manufacturers to maintain their production levels, while expectations for increased seasonal usage enhanced the market confidence.

This upward trend continued during the second week as well, as R-PET prices grew further by about 3%. Demand was found to be strong, particularly from the fast-moving consumer goods (FMCG) companies, who were planning to purchase sufficient R-PET stocks for the upcoming quarter. Though electricity costs rose, it did not affect the production activities among domestic recyclers. The decrease in R-PET imports further affected the local market, which made suppliers to increase their reliance on German manufacturers to meet the demand.

During the second half of March, the R-PET market stabilized. Market players noted no significant change in quotes, with market fundamentals being balanced on both the supply and demand sides. Consistency in the supplies of post-consumer PET bale supported recyclers in maintaining their production volumes, while domestic buyers were found to have made increased inquiries. However, competitive pricing from virgin PET alternatives started to affect some purchasing decisions, with a few downstream users intending to switch from R-PET to virgin materials to reduce costs.

Moreover, market studies by ChemAnalyst showed the growing price difference between R-PET and virgin PET, which has now got enhanced substantially in terms of percentage. This gap has made many downstream brands to minimize their R-PET usage and following only to the minimum content requirements under the Single Use Plastics Directive (SUPD), which was enacted in January 2025. While some major brands did set higher recycled content targets initially, the continuity in cost gap has forced many to decrease to more manageable levels.

Despite these challenges, German R-PET manufacturers are positive about the market outlook, especially ahead of the preform production season during the second quarter. March 2025 closed on a firm note, with the R-PET market being strong amid changing cost dynamics and brand strategies.