This start-up wants to become the next German global market leader

Vytal plans to be represented with its reusable packaging systems in several sectors and worldwide in the medium term. Legislation, both in Germany and internationally, is also expected to help.

These are tough times for the export giant Germany: there is a risk that demand for many popular products, such as combustion engines, will decline. Meanwhile, the Americans and Chinese seem to be overtaking Germany when it comes to sustainable products. So where is the sector in which the world market leaders will come from Germany in the future?

Tim Breker has an idea: reusable packaging. Sounds unspectacular, but according to the founder of Vytal, it is a growth market. "The B2C reusable market will grow strongly worldwide in the coming years," he says. And he is certain that it will ultimately be dominated by a German player. If he has his way, it will be Vytal, of course.

However, the topic is still particularly big in Germany. The Federal Republic is comparatively advanced, also in terms of legal requirements. On January 1, 2023, the reusable packaging obligation, as the amendment to the Packaging Act is colloquially known, will come into force. From then on, restaurateurs and retailers will be obliged to offer a reusable solution for food and takeaway food in addition to disposable packaging. There are only exceptions for very small businesses. This means that everyone, from supermarket chains to system catering to the Italian restaurant around the corner, is looking for an inexpensive way to meet the new requirements.

Already the market leader in Germany

And they quickly end up with Vytal. According to the Cologne-based company, it is already the market leader in the food sector. "We are the only company to offer food containers in all shapes and sizes," says Breker. Companies pay Vytal a one-off set-up fee for the system, which is between 100 and 250 euros per location. Customers can borrow and return the Vytal containers via app - not just at the station where they picked them up, but at any station. Vytal earns money every time the bin is filled.

Some companies are trying to set up a similar solution themselves. But Rewe and KFC, among others, rely on Vytal, partly because the model is much more convenient for customers. "With pool systems like ours, they don't have umpteen different boxes on the shelves, but just one," says Breker. And the companies don't have to build up their own reusable customer base first, but can fall back on the Vytal users who are already registered. After all, there are already 350,000 of them. With the reusability obligation, this figure is likely to increase significantly soon.

But Germany is only the beginning. According to forecasts, the global market for reusable packaging could grow by a good six percent per year in the future.

A franchise system to help

Vytal is also relying on a franchise system for its international expansion: local partners receive a license and build up a network themselves. In this way, internationalization is faster than if the company were to start in each market itself. Vytal already has partners in countries such as Norway, Israel and Mexico. "But we also enter new countries ourselves when the opportunity arises," says Breker. In the Netherlands, for example, a reusable-friendly reform is also due next year, and the start-up wants to expand there itself. Breker is not afraid of local competition: "Vytal has already recorded more app downloads than any other reusable app - worldwide."

In addition to national legislators, the EU is also playing into Vytal's hands. It is also working on new reusable regulations that could go beyond the food sector and also include beverages. Regulations for cosmetics and online retail are also being discussed time and again. Breker believes that Vytal's model is relatively easy to transfer to other areas. "We are already talking loosely about this with potential partners in the drugstore sector," he says. In this case, Vytal could also benefit from the fact that it already has a six-figure user base.

In line with the upcoming reform and further expansion plans, Vytal has now also raised additional funds. Two million euros have already been raised via a crowd-investing campaign, in addition to a ten-million-euro round that Vytal completed at the beginning of the year. Although Breker admits that it wasn't necessarily about the money. "Above all, we wanted to increase customer loyalty and also create communication opportunities for ourselves," he says. You don't become a global market leader without a little attention.