The European plastic recycling sector is facing severe challenges as plant closures escalate across the continent, warns Plastics Recycling Europe (PRE). The industry is grappling with increased economic pressure, declining domestic production, and a surge in material imports, leading to a growing number of company shutdowns.

According to PRE, the total capacity of closed facilities in 2024 doubled compared to 2023. The situation continues to worsen in 2025, affecting both small and large companies alike. The Netherlands alone witnessed the closure of seven plastic recycling plants in 2024.

PRE President Ton Emans stressed the urgency of the situation, calling on EU policymakers to take swift and decisive action. “We urge EU policymakers to enforce stronger import controls and ensure imported materials meet EU sustainability and safety standards,” Emans said. He emphasized that the industry has already invested €5 billion between 2020 and 2023 to meet recycling targets, underscoring the need for immediate intervention to protect the sector.

European recyclers are struggling with rising operational costs, including elevated energy expenses and increasing costs for waste materials. This financial strain has been exacerbated by cheaper imported materials, which PRE reports are often accompanied by fraudulent claims due to poor transparency in material origins.

Currently, imported recycled and virgin polymers account for over 20% of the EU’s polymer consumption. Meanwhile, domestic recycling production has fallen by 5% for most polymers. EU plastics production declined by 8.3% in 2022, amounting to 54 million tonnes. Mechanically recycled post-consumer plastic production also dropped 7.8%, reaching 7.1 million tonnes. In contrast, global plastics production grew by 3.4%, reducing Europe's global market share to 12%.

Despite maintaining a positive trade balance in value, Europe has become a net importer of plastic resins and finished goods. Resin exports from the EU decreased by 25.4% between 2020 and 2023. Projections suggest that EU plastic production may revert to levels seen in 2000, despite rising polymer consumption.

Adding to the concern, European exports of plastic waste to non-OECD countries surged by 36% in 2024 compared to 2022. The growth of installed plastic recycling capacity has slowed considerably, marking its slowest pace in years. Installed recycling capacity expanded by only 6% in 2023, down from 10% in 2022 and 17% in 2021. The total installed recycling capacity reached 13.2 million tonnes in 2023, up from 12.5 million tonnes in 2022.

PRE estimates that Europe would require 16 million tonnes of installed recycling capacity by 2025 to meet the recycled content targets outlined in the PPWR, indicating that the current pace of growth is insufficient.

“Without recognising plastic recycling as a strategic sector and implementing effective trade defence measures to protect European production, the EU's recycling industry risks further decline,” PRE concluded. This poses a significant threat to Europe's circular plastics economy, resource independence, and green job opportunities.