Crisis in Europe’s plastics recycling industry deepens

Europe’s plastics recycling industry is entering its sharpest decline – with turnover down 5.5% - putting at risk Europe’s circular economy, industrial resilience and thousands of local jobs. The latest annual report from Plastics Recyclers Europe, the association of European recyclers, which raised the alarm. shows the largest capacity contraction ever recorded. Preliminary 2025 data reveal a 50% rise in recycling facility closures, resulting in the loss of nearly one million tonnes of European recycling capacity over just three years.

“Now is the time to stand united for the sector – not only to protect jobs and businesses at risk, but to safeguard Europe’s environmental and technological progress, ensuring a sustainable future for all,” stated Ton Emans, President of Plastics Recyclers Europe,. "We call on the EU institutions and national policymakers to act decisively and implement supportive measures to preserve the sector and Europe's circular economy."

With a total installed capacity of 13.5 million tonnes in 2024, plastics recycling in Europe remains well below the 6% annual growth required to achieve the PPWR targets. The sector is facing growing pressure from high production and energy costs, falling demand, and increasing volumes of low-priced, unregulated imports from outside the region. Polyolefin films and PET are most severely affected, each accounting for 25% of total closures in 2023-2024. 

The data highlights issues that threaten the long-term viability of plastics recycling within Europe. Plastics Recyclers Europe urges EU institutions and Member States to take coordinated action immediately. Priority actions include establishing fair and enforced market regulations, implementing stronger controls on imports, cutting energy costs and harmonising reporting requirements via third-party certification across the region.