Circular economy

Plastics, recycling slows in Europe

The sector, worth 9.1 billion, risks losing one million tonnes by 2025 between closures, cheap imports and low demand

by Alexis Paparo

4' min read

4' min read

The European plastics recycling industry is worth EUR 9.1 billion, has 13.2 million tonnes of capacity, around 850 companies and over 30,000 employees. With Spain, Germany, Italy and Poland - according to the latest available data to 2023 - exceeding 100 plants each. Having grown considerably with the 2018 EU plastics strategy, the sector is now in crisis: according to Plastics Recyclers Europe - an association representing more than 200 recyclers in Europe - between January and July 2025, as much capacity has been lost as in 2024 and three times as much as in 2023. Some 40 plants have been closed, mainly in the Netherlands, the UK and Germany, and by the end of 2025 almost one million tonnes of production capacity could be lost.

"Since 2018, with the publication of the European Strategy on Plastics," explains Paolo Glerean, board member of Plastic Reycycles Europe, "Europe has started to focus on a recycling strategy as a local and circular solution, both to create economy and to save on CO2 emissions. Today about 50-60 million tonnes of plastics are processed in Europe, 40% of which is packaging'. The European strategy aims to quadruple the volume of recycling by 2030 compared to 2015," Glerean explains, "and between 2018 and 2023, the capacity for mechanical recycling has, in fact, risen from 6 to 13.2 million tonnes, "but collection and demand have not grown at the same rate, creating the current crisis: we need collection to grow also qualitatively and to be standardised on a continental scale," Glerean emphasises.

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Pressures on the supply chain

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Today, the supply chain suffers competition fromcheap and often uncontrolled imports or false certificates of conformity; uneven collection; high energy costs and low prices of non-EU virgin plastics. "Companies have doubled their production capacity, but without sufficient collection in quantity and quality. And a doubled recycling capacity implies a potential doubling of supply on a demand that has not increased to the same extent, affecting selling prices. Added to this is the competition from imported recyclate,' Glerean notes.

In fact, imports of non-EU polymers increased by 5% between 2023 and 2024, and preliminary estimates indicate that 2025 could touch a new record. The basic raw material would be there: over 32 million tonnes of plastic waste are collected every year in the EU (2022 data from Plastics Europe), but large portions of these, which are too shoddy, are exported to Turkey and China (+36% between 2023 and 2024). To stem the crisis, Plastics Recyclers Europe is calling for more customs protection and controls against non-compliant imports, incentives "such as reduced VAT on recyclate and recognition of CO₂ savings through recycling" and cuts in energy costs.

The situation in Italy

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Italy is well on track on its EU targets of 55% of plastic packaging actually recycled by 2030. "The collection increased by about 4% from 2021 to 2024 and sothe share of plastic packaging sent for recycling. In 2024, compared to the amount released for consumption, we will have exceeded 59%," explains Giovanni Bellomi, Director General of Corepla (National Consortium for the Collection, Recycling and Recovery of Plastic Packaging). According to Corepla data, around six million tonnes of plastic are used in Italy, 42% of which is packaging. Packaging accounts for about 80% of the plastic waste collected in Italy and 8% of the total waste. Bellomi emphasises that 'the European Community has changed the accounting rules, basing calculations on actual recycling: in 2024 we reached 49.8% of recycled plastic and we are now possibly above the EU target of 50% for 2025'.

On the sorting front, 'we are the only country in Europe that has the capacity to sort more than 20 polymers either by composition or by colour, thanks to 33 sorting plants and more than 45 thousand audits and controls along the entirechain. To increase the share of quality collection and thus facilitate its recycling - underlines Bellomi - we need to improve collection and work even more in concert with municipalities, producers and users, to make sorting and recycling easier". But the issue of treatment plants also emerges. "Seventy per cent of recycling companies are concentrated in the North", forcing "so many materials to be transferred from the South to the North to be sent for recycling, or exported because the necessary capacity is lacking". This is why the projects for new recycling plants financed by the NRP need to be completed. "We understand," Bellomi adds, "that the most advanced ones will be operational between the end of 2026 and the beginning of 2027; they are mainly mechanical recycling plants.

As for the future: 'Recycling must interface with an out-of-control market reality and a virgin material at very low prices. Support is needed for those who produce recyclate and incentives for those who use it. This is the only way to decrease the cost gap with virgin raw material,' Bellomi concludes.

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