Plastics Recyclers Europe has noted the slowest growth in Europe’s plastic recycling capacity ‘in years’, blaming a decline in domestic production, increases in imports, and company closures due to economic pressures.
None of these are new concerns, the organization explains, but they are still ‘unfolding with severe consequences across the entire value chain’.
Rising input waste and energy costs have apparently driven up operational expenses in recent years – setting the scene for cheaper imported materials, which currently account for over 20% of EU polymer consumption (including both virgin and recycled polymers). Their supply chains ‘often’ lack transparency and give way to fraudulent claims.
Meanwhile, plastic waste exports reportedly rose by 36% between 2022 and 2024, which suggests a shift away from in-region recycling efforts.
The same economic pressures have forced more European companies to close, with the total capacity of companies closing their doors in 2024 having doubled compared to 2023. Plastic production is therefore expected to fall below levels last recorded in 2000, despite continued growth in polymer consumption; and domestic recycling production is believed to have fallen by 5% for most polymers.
Altogether, Plastics Recyclers Europe believes these factors have contributed to the slowest growth in plastic recycling capacity ‘in years’. With recycling rates declining, the adoption of circular practices slowing down, unsustainable production methods taking the forefront, and more closures expected for both small and large companies in 2025, fears are rising that the EU will miss its recycling and sustainability targets for 2025.
If plastic recycling is not recognized as a strategic sector, and trade defence measures are not utilized to safeguard European production, Plastics Recyclers Europe warns that the industry ‘will continue to erode’. Thus, the EU’s commitment to resource independence, green jobs, and a circular plastics economy will be undermined.
“Now more than ever, decisive action is essential,” said Ton Emans, president at Plastics Recyclers Europe. “We urge EU policymakers to take a fast and strong political stance, introducing effective import controls and enforcing existing legislation, including the restriction of importing materials which do not meet equivalent EU sustainability and safety standards.
“These measures are crucial for the plastic recycling industry’s survival, which has already invested 5 billion euros between 2020 and 2023 just to meet mandatory targets.”
Last October, Plastics Recyclers Europe warned that there was a ‘recession’ in the European recycling industry. It observed that European demand for recyclates had declined, investments in domestic recycling had decreased, and imports were on the rise – all of which were feeding into the problem.
It went on to report that Europe’s recycling capacity had stagnated at a year-on-year increase of 6% in 2023 – its lowest growth since 2017. Before that point, capacities were said to have doubled in the space of five years, achieving an average growth of 17%.
On the other hand, Metal Packaging Europe and European Aluminium have suggested that the overall recycling rate for aluminium beverage cans in the European Union, United Kingdom, Switzerland, Norway and Iceland has reached 74.6%; and that, despite a 1% drop, the total amount of aluminium recycled from cans has increased to a ‘record level’ of 580,000 tonnes.
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