The European Union’s plastic recycling sector is at a critical juncture, with domestic production declining sharply, economic pressures mounting, and an influx of imported materials threatening the industry's viability. According to Plastics Recyclers Europe, these challenges are causing facility closures across the value chain, jeopardizing the EU’s ability to meet its circular economy and sustainability goals.
Imports of virgin and recycled polymers now account for over 20% of total EU polymer consumption, a trend that has significantly undermined local recyclers’ competitiveness. Compounding this issue is a 5% drop in domestic recycling production across most polymer categories—a decline that industry leaders warn could push EU plastic production back to levels not seen since the year 2000.
Ton Emans, President of Plastics Recyclers Europe, emphasized the gravity of the situation, stating,
“Now more than ever, decisive action is essential. 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.”
The issue of fraudulent environmental claims associated with imported materials is a growing concern. A recent investigation by the International Consortium of Investigative Journalists (ICIJ) revealed that environmental auditors have approved green labels for products linked to deforestation and authoritarian regimes, highlighting the lack of oversight in environmental certifications.
The recycling industry has invested €5 billion (approximately $5.5 billion) between 2020 and 2023 to align with the EU’s mandatory recycling targets. However, rising input waste costs and volatile energy prices have significantly increased operational expenses. According to Eurostat, average industrial electricity prices in the EU increased by nearly 20% between 2021 and 2023.
Additionally, the European Environment Agency (EEA) reported that waste collection and sorting costs surged due to inflation and labor shortages, further eroding profitability for recyclers.
In a troubling reversal of circular economy efforts, plastic waste exports from the EU grew by 36% in 2024 compared to 2022, according to Eurostat trade data. This indicates a move away from in-region recycling, which the EU has championed under its European Green Deal and Circular Economy Action Plan.
As a result, the EU experienced the slowest growth in recycling capacity in recent years. Facility closures have doubled in 2024 compared to 2023, affecting both small and large recycling operations. If these closures continue, they could permanently reverse years of progress in plastic circularity.
The deteriorating state of the recycling industry threatens the EU’s ability to meet its 2025 recycling targets, which require at least 50% recycling of plastic packaging waste, as stipulated under the Waste Framework Directive and the EU Plastics Strategy. However, Eurostat data shows that recycling rates for plastic packaging stagnated at 41% in 2022 and are projected to decline.
Virgin plastic production is also 2.5 to 3 times more carbon-intensive than recycling, according to a 2022 study by the Ellen MacArthur Foundation, exacerbating environmental impacts and undermining EU climate objectives.
Industry leaders are urging the European Commission to recognize plastic recycling as a strategic sector vital for the EU’s resource independence, climate targets, and circular economy vision. Strengthening trade defense instruments, implementing import controls, and enforcing sustainability standards for all plastic products—domestic and imported—are necessary to level the playing field.
Without intervention, the EU risks eroding its recycling infrastructure, losing green jobs, and becoming increasingly dependent on external sources for polymer materials—contrary to the bloc’s goals for strategic autonomy and environmental stewardship.
