The crisis in German plastics production is also increasingly affecting the packaging industry. According to Plastics Europe Germany, key performance indicators fell significantly in 2025 - with potential consequences along the entire packaging value chain.
Production fell by 4.5 per cent, turnover by 7.6 per cent to 24.6 billion euros, while exports fell by 5.5 per cent. The main reasons for this were the weak economy, falling demand and increasing international competitive pressure. The redirection of Chinese plastic products to Europe, which were originally destined for the US market, was particularly noticeable - an additional negative factor for packaging manufacturers.
Since the start of the energy crisis in 2022, the decline in plastics production in Germany has totalled over 26 percent. At the same time, global demand for plastics continues to grow - a structural disadvantage for Germany as a business location, which has a direct impact on the availability and competitiveness of packaging solutions.
Domino effect threatens packaging value chains
The close integration of the chemical, plastics and packaging industries has traditionally been seen as a strength of the location. However, according to the association, it is precisely this networking that now harbours risks. Dr Ralf Düssel, CEO of Plastics Europe Deutschland, warns of far-reaching consequences: „There is no cherry-picking in chemical parks. Raw materials, energy, steam and infrastructure are calculated across all sites.“
If central production stages are cancelled, there is a risk of disruption along the entire chain - from raw material suppliers to packaging processors and brand owners. The packaging industry, which relies on stable material flows, could be particularly affected.
Demands for better framework conditions for packaging and plastics
In order to ensure the competitiveness of the industry, the association is calling for comprehensive measures: fewer special regulatory paths, the removal of trade barriers in the EU internal market and noticeable reductions in energy and electricity costs. These factors are decisive for the economic efficiency of plastic packaging and its production in Europe.
At the same time, there is a greater focus on securing raw materials. For the packaging industry, this primarily means consistently keeping existing materials in the cycle and strengthening recycling streams.
Circular economy as the key to packaging - but under pressure
The transformation towards a functioning circular economy is key for the packaging industry. However, according to Plastics Europe Germany, the current pace is not sufficient. While Europe still has technological advantages, China in particular is rapidly expanding its recycling capacities and is becoming the leading supplier of recyclates.
„In both areas - securing the location and transformation - we have to prioritise pragmatism over perfection. Not every rule needs to be fully formulated from the outset. Not every open question can be clarified in advance. We can't wait for others to slow down. We have to speed up.“
Managing Director Dr Christine Bunte
High-quality recyclates are essential for packaging applications - for example for food packaging or demanding technical applications. At the same time, insolvencies in the European recycling sector are on the rise, which could further limit availability.
The association therefore emphasises the importance of recyclate usage quotas and demand incentives, for example through public procurement. At the same time, practicable framework conditions are necessary. Mass balance approaches in particular could play a key role in increasing the use of recycled raw materials in packaging.
Source: Plastics Europe Germany
