PRE says EU’s plastic recycling industry at a breaking point

Brussels-based organization Plastics Recyclers Europe (PRE) warns in a new press release that the European Union’s plastic recycling industry is at a breaking point, citing a sharp decline in domestic production, increased imports and rising economic pressures that are forcing company closures.

The organization adds that the industry has long warned of these risks, and today they are unfolding with severe consequences across the entire value chain.

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“Now more than ever, decisive action is essential,” says PRE President Ton Emans. “We urge EU policymakers to take a fast and strong political stance, introducing effective import controls and enforcing existing legislation, including the restriction of importing materials which do not meet equivalent EU sustainability and safety standards. These measures are crucial for the plastic recycling industry’s survival, which has already invested $5 billion euros between 2020 and 2023 just to meet mandatory targets.”

Besides the critical market trends, the PRE says European recyclers are grappling with high energy costs and soaring input scrap costs that have increased operational expenses in recent years. Meanwhile, the organization claims recyclers are being “undercut” by cheaper imported materials, adding that they often come with “fraudulent claims” due to the lack of transparency in the origin of materials.

Today, imports of both recycled and virgin polymers account for more than 20 percent of EU polymer consumption, while domestic recycling production has declined by 5 percent for most polymers, the PRE says, adding that, “alarmingly, EU plastic production is projected to regress to levels last seen in the year 2000, even as polymer consumption continues to grow.”

At the same time, the PRE says that plastic scrap exports from the EU surged by 36 percent in 2024 compared to 2022, highlighting a shift away from in-region recycling efforts.

“These trends have resulted in the slowest plastic recycling capacity growth recorded in years, paired with the increasing closure of recycling facilities,” the organization says. “The total capacity of facilities that shut down in 2024 doubled compared to 2023, and the situation is intensifying in 2025, impacting both small and large companies alike.”

The organization claims the negative market trends have been detrimental to the industry, leading to a decline in recycling rates, hindered adoption of circular practices and increased reliance on unsustainable production methods. Consequently, the PRE says the EU’s recycling and sustainability targets for this year are falling short.

“Without recognizing plastic recycling as a strategic sector and effectively utilizing the trade defense measures to safeguard European production against further distortions, the EU’s industry will continue to erode, undermining the bloc’s commitment to a circular plastics economy, resources independence and green jobs,” the PRE says.

In his February report for the Plastics Division of the Bureau of International Recycling (BIR), division President Henk Alssema, also of Vita Plastics, provides a similar outlook for the industry in Europe, writing that the recycled resin markets show no signs of recovery amid weak demand, and an increasing number of companies are facing financial difficulties.

“If this trend continues, a significant proportion of the plastics recycling sector could be wiped out,” Alssema writes. “Nothing short of urgent action is required to save the industry.”

In his report, Alssema says that a poor economic situation in Europe largely is to blame, with sales of materials remaining at a low level and profit margins disappearing. “Payment terms can no longer be maintained, creating a vicious cycle whereby companies are unable to pay each other, leading to more bankruptcies. This remains a worrying situation for the plastics recycling industry, with more and more capacity disappearing and sustainability goals coming under even greater pressure.”

Alssema adds that U.S. President Donald Trump’s reelection could put further strain on the European industry as his administration appears to be placing a lower priority on international climate agreements and stricter environmental regulations. “As a result,” he writes, “the gap between environmental policies in the USA and Europe could widen. While Europe focuses on sustainability and a circular economy, a more lenient environmental policy in the USA could enable American producers of prime and recycled plastics to operate at lower costs. This would make it even harder for European recyclers to compete.”

Alssema notes that the EU’s Packaging and Packaging Waste Regulation (PPWR) went into effect Feb. 11, and includes binding requirements for packaging design, promotes reusable packaging and establishes rules for waste management. He writes that while the PPWR presents opportunities such as potential increases in demand for recycled plastics that could create better material streams over the long term, the sector may face challenges such as competition with reusable packaging and the high investments required to meet the new regulations in the short term.