Plastics Recyclers Europe (PRE) has warned that the European plastic recycling industry is ‘facing imminent collapse’, stating that a surge in low-priced imports of recycled plastics, the consequent decrease in the demand for EU-made recyclates, mounting economic pressures and ‘excessive red tape’ are driving an increasing number of EU recyclers out of business.
Apparently, by the end of 2025 the territory is expected to have lost recycling facilities amounting to ‘almost one million tonnes’ of recycling capacity since 2023. Between January and July 2025 alone, PRE says almost the same amount of capacity as in the whole of 2024 was lost, and three times more than in 2023.
The organisation states that forecasts for 2025 indicate zero net growth after years of expansion, with The Netherlands, Germany and the United Kingdom most affected. To revive demand for EU recyclates and prevent further closures, PRE says policymakers must urgently implement trade and market defence mechanisms, ensure consistent EPR rules, and strictly enforce third-party certification and harmonised penalties for non-compliant materials.
PRE adds that this must be paired with measures that alleviate economic pressures for recyclers – such as access to inexpensive, clean energy – and a reduction of red tape to obtain and renew permits. Strengthening customs controls and including targeted incentives for investment are said to be ‘critical’ to restoring the sector’s competitiveness.
In March, PRE cautioned that EU plastic recycling was ‘at breaking point’, noting the slowest growth in Europe’s plastic recycling capacity ‘in years’ due to a decline in domestic production, increases in imports and company closures due to economic pressures. Rising input waste and energy costs have reportedly 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).
A few months later, we heard from Edward Kosior, CEO and Founder of Nextek Ltd, who argued that failure to address issues such as cheap virgin resin imports, falling demand and perceived weak enforcement in Europe’s plastics recycling sector could lead to environmental disaster. He highlighted the challenges facing the recycling industry including low virgin resin prices in China, low-cost recycled materials being imported into Europe and reduced uptake of European recycled plastics.
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