Plastics Recyclers Europe warns of the collapse of the European plastics recycling industry. Low-price imports, falling demand and increasing cost pressure have led to massive capacity losses.
According to Plastics Recyclers Europe, the European plastics recycling industry is on the verge of collapse. The massive increase in imports of cheap recycled material has severely weakened demand for EU recyclates. In combination with increasing economic burdens and bureaucratic hurdles, this is leading to more and more recycling companies having to cease production.
Between January and July 2025, almost as much recycling capacity was lost as in the whole of 2024, three times as much as in 2023. In total, almost one million tonnes of recycling capacity will have disappeared since 2023 by the end of 2025. Countries such as the Netherlands, Germany and the United Kingdom are particularly badly affected, according to the industry association.
„Standstill after years of growth“
After years of continuous expansion, the industry is facing zero growth for the first time. As a result, the implementation of the circular economy in Europe is also stalling. The economic recession is having a noticeably negative impact on demand, jeopardising investment and innovation.
Demands on politicians
Plastics Recyclers Europe is therefore calling for urgent countermeasures. These include the introduction of trade and market protection instruments, standardised rules for extended producer responsibility (EPR) and the consistent enforcement of certifications and sanctions for non-compliant materials.
In addition, access to low-cost, clean energy must be facilitated and bureaucratic requirements for authorisation procedures must be reduced. Increased customs controls and targeted investment incentives are also necessary to restore the industry's competitiveness.
Without swift intervention, the industry in Europe could suffer lasting damage, they say. According to the association, a collapse in plastics recycling would have serious consequences for climate protection and Europe's competitiveness.
Source: Plastics Recyclers Europe
