European recyclers signal crisis in plastics sector

The European plastics recycling industry warns that the sector is facing significant economic challenges, as demand for recycled materials declines while competition from imported virgin and recycled plastics continues to increase.

According to EuRIC – European Recycling Industries’ Confederation, several recycling companies across Europe are currently operating below capacity or with very limited margins, raising concerns about the long-term viability of the sector.
Industry representatives welcomed the fact that European institutions are beginning to recognize the structural difficulties affecting the plastics recycling market, particularly at a time when investments in recycling capacity are growing but demand for recycled materials is not increasing at the same pace.

Key challenges highlighted by the industry
The plastics recycling sector identifies several factors contributing to the current situation:
– low prices of virgin polymers, making recycled materials less competitive
– significant imports of recycled or semi-processed plastics from outside the EU
– insufficient demand for post-consumer recycled plastic (PCR) in several industrial sectors
– increasing operational and energy costs
Requests addressed to European institutions
Industry organizations are calling for additional measures at EU level to support the recycled plastics market, including:
• stimulating industrial demand for recycled plastic materials
• stricter monitoring of recycled plastics imports
• policies that support circular economy investments and recycling infrastructure
Market context
Over the past years, Europe has invested heavily in plastic recycling capacity, but supply growth has not always been matched by a similar increase in demand for recycled materials.
This imbalance is putting pressure on recycling companies, particularly as the industry adapts to new European regulations related to packaging and circular economy policies.