Europe’s annual growth in circular plastics production - including mechanically, physically and chemically recycled plastics and plastics derived from bio-based feedstock - declined sharply from 13.6% in 2022 to only 1.2% in 2024, according to new research.
The report from industry group Plastics Europe found the pace of Europe’s transition to circular plastics has slowed dramatically amid increased global competition: annual growth in global circular plastics production has accelerated from 5% to 7.7% over the same time.
European converter demand for circular plastics is also losing momentum, falling from 16.2% in annual growth in 2022 to 4% in 2024. Meanwhile, 19% of converter demand for circular plastics was met through imports, and 12.4% of Europe’s collected waste is recycled in other regions. The report said Europe’s dependence on imports is even greater for fossil-based plastics, with 25% of converter demand being met from abroad.
The report - The Circular Economy for Plastics: A European Analysis - said there are two fundamental reasons for the slowdown. First, high energy prices, rising emissions costs, and feedstock prices have weakened the industry’s international competitiveness and undermined the investment case for circularity, it said, noting that Europe’s plastics manufacturers are particularly exposed to geopolitical risks due to their reliance on imported gas and oil as feedstocks and energy sources.
Secondly, it said, the current policy and regulatory framework is not delivering. “Despite some progress, measures to stimulate market demand and supply for circular plastics have lacked the ambition, scope and speed required to unlock the necessary investments. This is a massive source of frustration for our industry and the plastics system more broadly,” the report said.
Rob Ingram, president of Plastics Europe and CEO of Ineos Olefins & Polymers Europe, said: “It is deeply concerning that, just when Europe should be accelerating the transition to a circular economy, we see a dramatic slowdown.”
He said that, as a result of high energy and feedstock prices, emissions costs and a lack of fair trade, Europe’s plastics manufacturers are in survival mode. “Our value chain cannot make the necessary investments in circularity; instead, we are witnessing Europe’s decarbonisation through deindustrialisation. Unless this highly damaging trend is reversed, Europe will not be able to meet its climate ambitions,” he said.
Europe still maintains the largest share of circular plastics (15.8%) in relation to its total production mix; however this has been driven primarily by a sharp decline in fossil-based plastics production, which fell by 8.3% to 43.3 Mt between 2022 and 2024.
Virginia Janssens, managing director of Plastics Europe said that if Europe continues to export valuable sorted waste and import recycled materials, it will undermine both its industrial base and its climate ambitions. Instead there needs to be a better business case for circular plastics in Europe, by making it economically attractive to keep and recycle our plastic waste.
“The Gulf crisis has reinforced how exposed Europe is to fossil-resource shocks, and that a strong European circular plastics economy is not a nice-to-have; it’s non-negotiable. Plastic waste is a valuable commodity which gives Europe the opportunity to be a resource-rich continent,” she said. While recycling rates have improved to 29.6%, that still means over 70% of Europe’s collected plastic waste – a valuable circular feedstock that could reduce Europe’s dependence on fossil resources – continued to be sent to incineration in 2024.
“Without urgent action, we risk losing the benefits of our own circular transition, with other regions capturing the industrial and economic value instead. Circularity is not just an environmental goal, it is an industrial one,” said Janssens.
- EU REACH regulation: Europe steps back from major revisions
- Advanced recycling plant turns plastic waste into feedstocks
- Europe plans 'Made in EU' strategy to support industry and clean tech
- Europe’s competitiveness crisis has deepened, warns industry
Visit Blog