September 2, 2025 17:30

Europe’s plastics recycling industry is facing a sharp downturn, with 1 million tonnes less capacity expected by year-end compared to two years ago, according to sector association Plastics Recyclers Europe (PRE). The drop follows a wave of plant closures across the continent.

In the first seven months of 2025 alone, Europe has already lost as much capacity as in the whole of 2024, which itself was three times higher than the reduction recorded in 2023. The countries hit hardest are the Netherlands, Germany and the UK.
Forecasts now point to zero net growth for 2025, after years of steady expansion.

“The European plastic recycling industry is facing imminent collapse,” PRE said in a statement. “The surge in low-priced imports of recycled plastics, the consequent decrease in the demand for EU-made recyclates, mounting economic pressures and excessive red tape are driving an increasing number of EU recyclers out of business. This is leading to a decrease in production and recycling capacity, compromising the survival of this strategic sector.”

To reverse the decline and stimulate demand for EU-produced recyclates, PRE calls for urgent trade and market defense mechanisms, consistent EPR rules, third-party certification and harmonized penalties for noncompliant materials.
The association also urges action to ease financial pressure on recyclers, including access to low-cost clean energy, streamlined permitting procedures, stronger customs controls and targeted investment incentives.

“The time to act is now,” PRE concluded. “The collapse of the European plastics recycling sector would cause irreversible damage to the environmental progress and innovation achieved over the past decade, jeopardizing the achievement of the EU’s climate goals and its long-term competitiveness.”

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