What is HolyGrail 2.0?

HolyGrail 2.0 uses invisible digital watermarks on plastic packaging to improve recycling in Europe, boosting sorting accuracy and supporting a circular economy by 2025’s proven tech success.
By
Oskar Mortensen
March 2, 2026
5 min read
What is HolyGrail 2.0?

HolyGrail 2.0 is a game-changing effort to make plastic packaging recycling smarter and more efficient across Europe. This project uses tiny, invisible digital watermarks on packaging that tell sorting machines exactly what the material is and how it should be recycled. By improving how packaging is sorted, it helps create cleaner recycling streams and better-quality recycled plastics.

Digital watermarks unlock a new level of precision in recycling processes. Thanks to the collaboration of many companies, HolyGrail 2.0 has proven these invisible codes work well in real recycling plants, paving the way for a more circular economy. This means less waste, more reused materials, and a brighter future for sustainability.

Definition: HolyGrail 2.0

HolyGrail 2.0 is a project that improves plastic packaging recycling in Europe by using invisible digital watermarks. These tiny codes on packaging hold details about the material and product type, helping sorting machines recycle more effectively.

Digital watermarks hold details about packaging materials and product types. They help sorting machines recycle more effectively. HolyGrail 2.0 uses these invisible codes to improve plastic recycling in Europe.

For example, a plastic bottle with a digital watermark can be quickly identified by recycling machines, which then separate it correctly. This means less contamination in recycling streams and better quality recycled plastic for new products.

How digital watermarking is reshaping packaging recycling

Can smarter sorting really boost recycling rates? New technologies like digital watermarks are changing how packaging waste is identified and separated. This helps recyclers handle materials more accurately, reducing contamination and improving the quality of recycled products.

The HolyGrail 2.0 project builds on earlier research and aims to prove these watermarks work not just in labs but in real recycling plants. By embedding tiny, invisible codes on packaging, sorting machines can read key info like material type and brand. This precise sorting supports circular economy goals by ensuring materials are recycled properly and reused efficiently.

Collaboration is key to this progress. Industry groups, brands, and waste organizations are working together to test and scale the technology across Europe. Pilot projects, including one in France, are already showing promising results in real-world conditions.

These efforts highlight how innovative solutions can make producer responsibility more effective. Embracing digital watermarks could be a major step toward cleaner, more sustainable recycling systems.

7 examples on advanced sorting technologies for packaging waste

Here are some innovative ways new sorting methods help improve recycling and support circularity:

  • Digital watermarks: These invisible codes on packaging enable precise identification and sorting, boosting recycling rates. They help separate similar-looking materials more effectively than traditional labels.
  • Near-infrared (NIR) scanning: This technology detects different types of plastics by their chemical signatures, allowing automated sorting without manual intervention. It increases the purity of recycled materials.
  • AI-powered optical sorting: Artificial intelligence analyzes images of waste streams to distinguish packaging types, improving accuracy and speed in sorting facilities.
  • Robotic picking systems: Robots equipped with sensors pick out specific recyclable items from mixed waste, reducing contamination and enhancing recycling quality.
  • Electrostatic separation: This method uses electrical charges to separate materials like plastics and metals, aiding in the recovery of valuable components.
  • Magnetic resonance identification: Similar to MRI, this scans packaging to detect hidden markers that guide sorting machines to the right bins.
  • Barcode and RFID scanning: These familiar technologies are adapted to track packaging through the recycling process, improving accountability and collection efficiency.

While traditional recycling relied mainly on manual sorting and basic machines, these advanced technologies provide a much higher level of precision. This shift means less waste ends up in landfills and more materials return to the production cycle, supporting sustainability goals.

Terms related to advanced packaging recycling technology

Many innovative efforts focus on improving how we identify and sort packaging to boost recycling success.

  1. Digital watermarking: A technique that embeds invisible codes on packaging, helping sorting machines recognize and separate materials for recycling.
  2. Waste sorting technologies: Tools and systems that automatically sort different types of waste, making recycling more efficient and reducing contamination.
  3. Extended producer responsibility (EPR): A policy approach where producers take responsibility for the entire lifecycle of their products, especially for managing packaging waste.
  4. Circular economy: An economic system aimed at minimizing waste by reusing, recycling, and designing products for longer life.
  5. Recyclate quality improvement: Efforts to increase the purity and usability of recycled materials, ensuring they can replace new raw materials effectively.

Frequently asked questions on HolyGrail 2.0

Here are answers to common questions about HolyGrail 2.0 and its impact on packaging recycling.

What is digital watermarking in HolyGrail 2.0?

Digital watermarking is a special code printed invisibly on packaging. It helps sorting machines identify the type of material and brand, making recycling more accurate and efficient.

How does HolyGrail 2.0 improve plastic recycling?

By using digital watermarks, HolyGrail 2.0 enables better sorting of plastics. This means cleaner streams of recycled material, which boosts the quality and value of recycled plastics.

How does HolyGrail 2.0 support the circular economy?

HolyGrail 2.0 helps keep packaging materials in use longer by making recycling easier and more reliable. This reduces waste and the need for new raw materials, supporting a circular economy.

What role does industry collaboration play in HolyGrail 2.0?

HolyGrail 2.0 is a joint effort of brands, packaging producers, and recyclers working together. This collaboration ensures the system meets real-world needs and drives recycling innovation.

How does HolyGrail 2.0 help with packaging waste management?

It improves waste sorting by providing clear material information to sorting facilities. This leads to better recovery of packaging materials, reducing landfill and environmental impact.