Europe’s Plastics Recycling Industry Faces ‘Imminent Collapse’

SEATTLE (Scrap Monster): The European plastics recycling industry is facing “imminent collapse,” warns Plastics Recyclers Europe (PRE) in a press release issued on Aug. 27. 

An increasing number of EU recyclers are being driven out of business by a perfect storm of factors, says PRE: A surge in low-priced imports of recycled plastics, diminishing demand for EU-made recyclates, mounting economic pressures, and excessive red tape. “This is leading to a decrease in production and recycling capacity, compromising the survival of this strategic sector,” writes PRE.

One million tonnes of recycling capacity lost

The association representing Europe’s plastics recycling industry estimates that approximately one million metric tons of recycling capacity will have been lost between 2023 and the end of 2025. Between January and July of this year alone, “almost the same amount of capacity as in the whole of 2024 was lost, and three times more than in 2023,” notes the association. “Forecasts for 2025 indicate zero net growth after years of rapid expansion, which signals a critical decline in momentum in the transition to a circular economy,” it adds. The Netherlands, Germany, and the United Kingdom are most affected by this downward trend.

To revive demand for EU recyclates and prevent further closures, PRE urges policymakers to swiftly implement trade and market defense mechanisms, ensure consistent extended producer responsibility (EPR) rules, and strictly enforce third-party certification and harmonized penalties for non-compliant materials.

Remove permitting obstacles, urges PRE

To support recyclers during this difficult period, PRE wants to see these measures paired with access to inexpensive, clean energy and a reduction in red tape to accelerate the permitting process. “Strengthening customs controls and including targeted incentives for investment are also critical to restoring the sector’s competitiveness” said PRE.

Failure to act decisively and in a timely manner “would cause irreversible damage to the environmental progress and innovation achieved over the past decade, jeopardizing the achievement of the EU’s climate goals and its long-term competitiveness,” added PRE.

Call for strengthening import controls

This communication follows a similar call to action issued by PRE in March 2025, when it said the EU’s plastic recycling industry was at a “breaking point.” At that time, it noted that imports of recycled and virgin polymers accounted for more than 20% of EU polymer consumption, while domestic recycling production had declined by 5% for most polymers. PRE stressed the urgent need for effective import controls and a restriction on imports of materials that do not meet the EU’s sustainability and safety standards.

 “Besides the critical market trends, European recyclers are grappling with high energy costs and soaring input waste costs, which have increased operational expenses over the last few years. Meanwhile, they are being undercut by cheaper imported materials, which often come with fraudulent claims due to the lack of transparency in the origin of materials,” wrote PRE in March.  

 Courtesy: www.plasticstoday.com