Europe’s plastics recycling sector is entering a pronounced downturn, with turnover decreasing by 5.5 percent and the largest capacity contraction on record, according to Plastics Recycling Industry Figures 2024. Preliminary 2025 data indicate a 50 percent rise in recycling facility closures, which has led to the loss of nearly one million tonnes of European recycling capacity over just three years. The contraction is described as a direct threat to the region’s circular economy objectives, to industrial resilience and to thousands of local jobs. Installed recycling capacity reached 13.5 million tonnes in 2024, yet growth remains well below the approximately 6 percent annual increase required to meet PPWR targets. Market conditions have deteriorated amid high production and energy costs, falling demand and increasing volumes of low priced, unregulated imports from outside the region. The impact is uneven across streams, with polyolefin films and PET most affected, each accounting for 25 percent of total closures in 2023-2024.
Latest figures indicate capacity contraction
The latest annual dataset points to the sharpest retrenchment the sector has recorded. While total installed capacity stands at 13.5 million tonnes, the industry is not keeping pace with the growth trajectory needed to deliver on EU packaging objectives. Early indicators for 2025 show a marked intensification of shutdowns, underscoring the fragility of current economics. Polyolefin films and PET have borne a disproportionate burden, each representing a quarter of facility closures reported over 2023-2024.
Industry pressures
Operators report a combination of adverse factors: elevated production and energy costs, weaker demand across key applications and a surge in low priced, unregulated imports from outside Europe. Taken together, these pressures have undermined margins and investment signals, accelerating rationalisation across multiple material streams.
Call for coordinated policy action
Sector representatives have urged immediate, coordinated measures at EU and national levels. "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," said Ton Emans, President of Plastics Recyclers Europe. "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."
Priority actions outlined include:
- Establishing fair and enforced market regulations
- Implementing stronger controls on imports
- Reducing energy costs
- Harmonising reporting requirements via third party certification across the region
Further details are referenced in Plastics Recycling Industry Figures 2024 and in Strategic Recommendations for a Resilient and Circular Plastic Value Chain in Europe.
