November 18, 2024 15:44

The gap between global and European plastics production continues to widen. Global output rose from 400 million to 413 million metric tons last year (+3.4%), while Europe’s fell from nearly 59 million to 54 million metric tons, with 42.9 million of that being virgin resins—a sharp 8.3% decline within a year.

For the first time, the production of post-consumer recycled plastics in Europe also decreased, falling from 7.7 million to 7.1 million metric tons (-7.8%). Chemical recycling remains marginal at 120,000 metric tons, and bioplastics production increased slightly from 700,000 to 800,000 metric tons between 2022 and 2023.

These figures are part of the latest edition of Plastics – the fast Facts 2024, an annual report published by PlasticsEurope, the association representing European plastics producers (Read the full report here).

Exports of plastics from UE have dropped by 25.4% between 2020 and 2023. While the continent still maintains a positive trade balance in value terms, it has become a net importer of both plastic resins and finished plastic products.

PlasticsEurope highlights the growing loss of competitiveness in a sector that supports over 1.5 million jobs across 51,700 companies and generated over €365 billion in revenue in 2023.

Environmental impacts are also at stake, as noted by Marco ten Bruggencate, President of PlasticsEurope: “The EU’s transformation to a circular plastics system is in acute danger from imported plastics which do not always meet EU standards. The hard truth is that we already see EU manufacturing plants being shut down, leading to offshoring of the industry, jobs and sustainable investments. The circularity transition will only be successful if policymakers urgently implement the framework conditions needed to regain our competitiveness and provide an attractive long-term perspective for circularity investments. The window of opportunity is narrow and the time for bold action is now.”

The association calls for swift and concrete actions: “To avoid a worrying slowdown in Europe’s transition we need urgent measures to make investments in circular plastic production more attractive, reduce red tape for instance due to excessively long permitting procedures and create a level playing field with our international competitors,” said Virginia Janssens, Managing Director of PlasticsEurope. “Despite the challenges, we remain fully committed to progress towards the circularity and net zero ambitions of our ‘Plastics Transition’ roadmap. We now need EU and Member State policymakers to send an immediate and unambiguous message to investors and the market that they also remain committed to plastics manufacturing in Europe and our transition journey.”

Beyond growing non-EU competition fueled by global overcapacity, European manufacturers face higher production costs due to rising energy and feedstock prices, persistent inflation, and limited availability of circular feedstocks. These challenges arise within a context of stagnant European growth, with some key sectors on the brink of recession.

PlasticsEurope’s demands include ambitious mandatory recycled content targets, timely acceptance of mass balance and innovative recycling methods like chemical recycling, simplified permitting procedures for low-carbon circular industrial installations, and monitoring and certification schemes to ensure that imports meet EU standards.
The association also advocates for further evaluation of fiscal and economic measures to urgently make plastics recycling competitive in Europe.

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