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The plastic recycling industry in Europe is on the brink of collapse!

Bioplastics Research Institute 2025-03-25 11:06:30

European plastic recycling industry in crisis, many factories face bankruptcy, entire industry faces severe crisis.

On March 19, 2025, the European Plastic Recyclers Association (Plastics Recyclers Europe) issued a warning that the number of plastic recycling plants closing in Europe is increasing due to rising imports and intensifying economic pressures, while domestic production continues to decline, with the industry teetering on the brink of collapse.

EU plastic production is expected to decline to 2000 levels

The data clearly indicates an industry crisis.

Comparing 2022, the total plastic production in the EU decreased by 8.3% in 2023 to 54 million tonnes, while the production of post-consumer plastic recycled mechanically also dropped by 7.8%, reaching 7.1 million tonnes. These figures contrast sharply with the global increase in plastic production by 3.4%, resulting in Europe's market share decreasing further to 12%.

Currently, the import quantities of recycled and virgin plastics account for over 20% of the EU's plastic consumption, while plastic recycling rates have decreased by 5% in most member states. Meanwhile, despite the EU's plastic consumption continuing to grow, domestic plastic production is showing a downward trend, expected to fall back to 2000 levels.

At the same time, the export of plastic waste from the EU surged by 36% in 2024 compared to 2022, indicating a reduction in the EU's efforts to recycle plastics locally. Compared to 2023, the total capacity of closed recycling facilities doubled in 2024, and this situation is expected to worsen in 2025.

The plastic recycling industry faces significant market pressure.

One side, energy prices and import costs are rising, increasing the operating expenses of the company. The other side, the cheap imports from abroad have hit hard domestic recycling companies.

The supply chains of these imported materials often lack transparency and are subject to false advertising. Due to the inability to determine their origin, it is difficult to ensure their quality.

Under this dual pressure, the development of Europe's plastic recycling industry has been severely hindered, with slow growth in recycling capacity, only increasing by 6% in 2023, the lowest growth rate since 2017.

Industry association demands immediate action.

Industry associations point out that if plastic recycling is not regarded as a strategic industry in the EU, and trade protection measures fail to be effectively implemented to protect European production, the industry will continue to decline. This will not only affect the plastic recycling industry itself but will also have serious repercussions on the entire plastic value chain, jeopardizing the EU's commitments to resource independence, green jobs, and a circular plastic economy.

Ton Emans, president of the European Plastic Recyclers association, has called on EU policymakers to swiftly take strong political positions, implement effective import control measures, and rigorously enforce existing legislation to restrict the import of materials that do not meet the EU's sustainability and safety standards. He emphasized that these measures are crucial for the survival of the plastic recycling industry, which invested 5 billion euros from 2020 to 2023 to meet the mandatory targets.

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The plastic recycling industry in Europe is on the brink of collapse!

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