‘Deepening’ crisis for European plastics recycling 

Europe’s plastics recycling industry is witnessing its sharpest decline with turnover down 5.5%, putting at risk Europe’s circular economy, industrial resilience and thousands of jobs, says Plastics Recyclers Europe in its latest market update. 

According to the industry body, the sector is plagued by ‘the largest capacity contraction ever’. ‘Preliminary 2025 data reveal a 50% rise in recycling facility closures, resulting in the loss of nearly one million tonnes of European recycling capacity over just three years.

Immediate action needed

‘Now is the time to stand united for the sector, not only to protect jobs and businesses at risk but to safeguard Europe’s environmental and technological progress, ensuring a sustainable future for all,’ says PRE president Ton Emans. ‘We call on the EU institutions and national policymakers to act decisively and implement supportive measures to preserve the sector and Europe’s circular economy.’

With a total installed capacity of 13.5 million tonnes in 2024, plastics recycling in Europe remains well below the 6% annual growth required to achieve the EU’s Packaging and Packaging Waste Regulation targets.

High energy cost, shrunk demand  

Recyclers are facing growing pressure from high production and energy costs, falling demand and increasing volumes of low-priced, unregulated imports from outside Europe. Polyolefin films and PET are most severely affected, according to PRE, each accounting for 25% of total closures in 2023-2024.

Priority actions include establishing fair and enforced market regulations, implementing stronger controls on imports, cutting energy costs and harmonising reporting requirements via third-party certification.