The European plastics recycling industry is currently in an unprecedented crisis. The total installed capacity of the plastics recycling industry in Europe is approximately 13.2 million metric tons. According to Plastics Recyclers Europe (PRE), Europe will lose around one million tons of recycling capacity between 2023 and 2025. More worryingly, the amount of recycling capacity lost in the entire year of 2024 was almost the same as the amount lost from January to July 2025. In addition, the number of plant closures has tripled compared to 2023 and is forecast to increase further in 2025.
The crisis in the European plastic recycling industry is due to a variety of challenges such as Cheap Imports, Falling Demand, High Energy & Operational Costs, Regulatory Burden & Policy Gaps. Low-cost plastics are making European producers less competitive. According to PRE, many imported materials do not comply with European standards, but easily enter the market, which makes European recyclers uncompetitive.
On the other hand, operating recycling plants is currently expensive. Mechanical recycling processes like washing, drying, and melting use a lot of energy. In Europe, electricity and fuel costs are very high, which leads to low profitability. Member States’ regulations are irregular, permit processes are slow, and quality assurance processes are very expensive. This creates problems for local producers. According to PRE data, no net growth is expected in 2025.
Many projects have been put on hold as investors feel uncertain about profitability. Achieving this goal is becoming more difficult due to declining recycling capacity. As recycling capacity declines, the use of virgin plastic will increase to meet the necessary plastic demand, which will increase carbon emissions and increase environmental impact. Jobs and investment will be affected.
Plastics Recyclers Europe (PRE) calls on policymakers to take the following steps:
- Ensure effective implementation of recycled content obligations.
- Control cheap imports and equalize competition.
- Enable plant operation by providing high energy cost support.
Europe’s world-renowned recycling industry could face collapse if urgent action is not taken. But with the right policies, it can play a vital role in Europe’s overall economy and meeting its climate goals.
