Plastics Europe has published a new edition of its biennial report, “Plastics in Circularity, an analysis of the European situation”, presenting 2024 data on the transformation of the European plastics sector. The study includes an analysis of the production, conversion, use and trade of circular plastics, as well as data relating to plastic waste management. The results presented show that, amid intensifying global competition, the pace of this transformation has clearly weakened. This is particularly visible in the growth dynamics of circular plastics production in Europe. The annual growth rate fell from 13.6% in 2022 to 1.2% in 2024. This means production reached 8.7 million tonnes, corresponding to 15.8% of total plastics production. At the same time, globally, the annual growth rate of circular plastics production increased from 5% to 7.7%. The report also points to a slowdown in demand growth from converters. Over two years, the annual growth rate of demand for circular plastics fell from 16.2% to 4%.
For the first time, the report also includes trade data, showing the significant dependence of Europe’s transformation on external value chains. The data show that 19% of converters’ demand for circular plastics is met through imports, while 12.4% of waste collected in Europe is sent for recycling outside the region. Dependence on imported fossil-based plastics remains even greater, with these materials covering 25% of converters’ demand.
Slower momentum despite a high share of circular plastics
According to Plastics Europe, Europe maintained the highest share of circular plastics in total plastics production, at 15.8%. However, the organisation notes that this result is largely a consequence of the sharp decline in fossil-based plastics production. Between 2022 and 2024, this production fell by 8.3%, to 43.3 million tonnes in 2024.
Rob Ingram, CEO of Ineos Olefins & Polymers Europe and President of Plastics Europe, said: “It is deeply worrying that just when Europe should be accelerating the shift to a circular economy, we are seeing a dramatic slowdown. As a result of high energy and feedstock prices, the additional burden of emissions costs, and failure to uphold fair trade rules, European plastics producers have been forced into survival mode. Our value chain is unable to make the necessary investments in circularity; as a result, we are witnessing the decarbonisation of Europe through deindustrialisation. If this highly destructive trend is not reversed, Europe will not be able to continue delivering on its climate ambitions.”
Imports, waste exports and pressure on competitiveness
Virginia Janssens, Managing Director of Plastics Europe, pointed out that exporting valuable, sorted waste while importing recyclates weakens both Europe’s industrial base and its climate objectives. As she stated: “By continuing to export valuable, sorted waste and import recyclates, we are weakening both our industrial base and our climate ambitions. We need to create a business case for European circular plastics by making it economically viable to keep waste in Europe and recycle it here. Supportive legislation tailored to these specific objectives is a key enabler of success.”
The statement also underlined that recent tensions in the Persian Gulf have highlighted Europe’s vulnerability to economic disruption linked to the availability of fossil resources. According to Plastics Europe, a strong European circular plastics sector is not an optional solution, but an essential component from the perspective of raw material security and economic resilience. The organisation argues that plastic waste should be treated as a strategic resource that can be better used in Europe.
Recycling is increasing, but most waste still remains outside the loop
The report states that the recycling rate rose to 29.6%. At the same time, more than 70% of plastic waste collected in Europe still does not return to the material loop. In 2024, 48.9%, or 16 million tonnes, was sent to incineration, while 21.5%, or 7 million tonnes, was landfilled. According to the report’s authors, this shows the scale of the challenges facing both policymakers and the entire European plastics system.
Plastics Europe believes that, despite the European Commission’s recognition of the strategic importance of plastics production in the Industrial Accelerator Act, the current EU policy framework does not create sufficient market incentives to reverse current trends at the required scale and speed. The organisation is calling for urgent action at both EU and national level to restore the industry’s competitiveness and unlock large-scale investment in circular plastics. The areas identified include energy and emissions costs in Europe, fair trade rules, and mechanisms to strengthen market demand for circular plastics within the EU single market.
Virginia Janssens added: “The transition to a circular plastics economy must become a European priority. The Circular Economy Act must genuinely drive change and make circularity an attractive business proposition in Europe. Without urgent action, we risk losing the benefits of Europe’s transformation by surrendering its industrial and economic gains to other regions. Circularity is not only an environmental objective, it is also an industrial objective.”
The geographical scope of the analyses presented in the report covers the EU27 countries as well as Norway, Switzerland and the United Kingdom. Data on circular plastics include materials derived from mechanical, physical and chemical recycling, as well as bio-based plastics. The annual growth rates for circular production and converters’ demand cited in the report for 2022 and 2024 refer to the compound annual growth rate, CAGR, for the periods 2018–2022 and 2022–2024 respectively.
