Market turnaround gives plastic recyclers cause for optimism

The crisis in the Middle East is driving up the price of virgin plastics, creating more opportunities for recycled plastics in the market. The outlook for the recycled plastics market is therefore positive but still cautious.

At the tenth anniversary edition of the Plastics Recycling Show Europe (PRSE) in Amsterdam, the Netherlands the mood this year was cautiously positive. Since the start of the crisis in the Middle East, the plastics recycling sector has been given some breathing space after several years of uncertainty. But, just as at the BIR Convention in Gothenburg, Sweden in early June, delegates were conscious the upturn was prompted by conflict.

‘It’s too early to celebrate,’ warns Catherine Bianconi of Plastiloop (Veolia). ‘As virgin plastic has become more expensive, we are seeing increased demand for recycled plastic. We therefore see this as an opportunity to show manufacturers just how good our product is and that it can be a fully-fledged substitute for virgin plastic. But we also realise that this crisis is temporary and that the problems in our sector are not yet behind us. We are sitting down with manufacturers more often and that in itself is a very important step.’

Still in the lurch

Even so, the market for plastic recyclates remains precarious. According to Ton Emans, chair of Plastics Recyclers Europe, market pressures and policy uncertainty are putting the entire European plastics recycling value chain under severe strain. ‘In times like these, cooperation and unity are essential. PRS Europe is the place where our industry comes together to tackle these obstacles, share practical solutions and strengthen the partnerships needed to make plastics truly circular.’

According to Emans, consistent regulation, enforcement and demand creation are essential for a robust market. ‘Without structural demand and fair competition, upscaling will not happen. Recycling works technically but political, economic and market conditions need to be better aligned to achieve a competitive and circular plastics economy in Europe.’

Certainty

Renewi has also noticed the shift in the market. ‘We see this reflected in demand but, ultimately, we focus primarily on long-term partnerships,’ says Wim Pype, international sales manager at Renewi E-Waste. In 2023, a partnership with Electrolux won a Plastics Recycling Show Europe Award for a fridge whose interior is made from 70% recycled plastics.

‘We are noticing that more and more companies are coming to us saying, “We want this too”. Through partnerships like this, we have proven that we can do it. Our recycled material is high quality and meets all requirements, so why not?’

Resilient industry

PRSE organisers look back with satisfaction on the latest edition. The tenth-anniversary event attracted more than 11 500 visitors and over 500 exhibitors.

Keynote speaker Jessika Roswall, European Commissioner for the Environment observes: ‘There is no circular economy without plastics recycling, and no competitive circular economy without a strong and resilient European recycling industry’.

Ton Emans, Chair of Plastics Recyclers Europe, agrees, saying: ‘Creating a level playing field to make our sector competitive requires open dialogue and ongoing cooperation between the sector and the European institutions.’

Plastics Recycling Show Europe returns to the RAI Amsterdam on 29 and 30 June 2027.