Digital watermarks are stepping into the spotlight as a powerful solution to tackling one of the biggest challenges of recycling: the precise sorting of plastic packaging.
The latest results from the Digital Watermarks Initiative Holygrail 2.0 trial show a major leap forward to prove the potential of technology on an industrial scale, led by AIM, using alliances to end plastic waste.
It will be held at the Hyngen Entengan Materials Recovery Facility (MRF) in Swisttal, Germany. It deals with 100,000 tonnes of waste per year from over 3 million households. This was when the pilot tested a hard plastic package with an embedded digital watermark. These marks allow packaging to be identified with much higher accuracy than traditional sorting systems.
This development truly marks a turning point towards the economy of circulating plastics, with smarter sorting, improved traceability and package-level accuracy now within reach.
5.66 million detections over 100 days
The exam, held from August 19th to December 19th, 2024, tested Digimarc’s digital watermark system.
The facility was equipped with a hybrid detection module jointly developed by Digimarc and Pellenc St, combining proximity (NIR) technology with digital watermark recognition.
Over 100 days, the system was recorded:
5,949 5,949 Unique SKUS Average 56,000 detection accuracy per day in the range of 87.9% to 93.8%
These results were achieved in a single-pass sorting environment and were even more impressive given the challenges of dirty, overlapping, or irregularly shaped packaging that are common in post-consumer waste streams.
Various packages, high precision
This test covers four important package types: PET non-food bottles, PET trays, hard polyethylene (PE containing tubes), and hard polypropylene (PP).
Participating brands included major FMCG players such as Procter & Gamble, Aldi, Mondelēz International, Orkla and Arla Foods.
Additional digitally tagged packages have been added, such as Coca-Cola and McDonald’s drink cups and Imperial branded tobacco cans, to bolster the test stream.
The system’s ability to consistently identify and sort this diverse material combination highlights its commercial preparation.
Unlock SKU Level Selection and Traceability
One of the most transformative aspects of digital watermarking is the possibility of enabling SKU-level sorting. This is a detail that cannot be achieved with traditional recycling technology.
This fine-grained sort opens the door to compliance with smarter waste traceability, data-driven recycling practices, and future regulatory requirements, including EU packaging and packaging waste regulations (PPWR).
Starting in January 2030, the new requirement will require an increase in recycled content in plastic packaging. Digital watermarks can play a pivotal role in meeting these targets by providing cleaner and more accurately sorted recycling.
Next Stage: Holygrail 2030 and Market Rollout
With Holygrail 2.0 successful, this initiative moves to the next stage: Holygrail 2030 – Circular Packaging.
This stage focuses on proving the economic viability of smart sorting solutions and expanding access to high-quality recycled materials for reuse, including food-grade applications.
Early market demonstrations are planned in Belgium (for flexible PP food packages) and Germany (for strict PP food packages), paving the way for wider adoption and circulation innovation across the packaging value chain.
Turning points for recycling
The Holygrail 2.0 trial shows that digital watermarks are more than just a promising concept. This is a viable and scalable technology, as you know recycling.
With consistent detection rates above 90% and millions of successful identifications under difficult conditions, the future of circular packages is much closer.
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