The word is a perfect example of Chinese word formation: `垃圾 (garbage) + 桶 (bucket) = 垃圾桶 (garbage bucket)`.
While a trash can might seem purely functional, the concept of the 垃圾桶 has taken on significant cultural weight in modern China due to the nationwide push for 垃圾分类 (lājī fēnlèi) - waste sorting. In major cities like Shanghai, residents face strict regulations for sorting their household waste into specific categories (e.g., wet waste, dry waste, recyclable, hazardous). This has led to a proliferation of different colored 垃圾桶 in residential communities and public spaces. For a foreigner living or traveling in China, knowing how to properly use these bins is a key part of daily life and showing social awareness. Compared to Western cultures where recycling has often evolved gradually over decades, China's waste-sorting campaign was implemented rapidly and with strong government enforcement. This reflects a broader societal value on collective action for national goals, in this case, environmental protection (环保 - huánbǎo). Mis-sorting your trash can even lead to fines or social shaming, making the humble 垃圾桶 a focal point of modern civic duty.
垃圾桶 is used in various contexts, from the literal to the metaphorical.