Wave of surging plastic recycling plant closures hits Europe
The European plastic recycling industry is facing imminent collapse.
The surge in low-priced imports of recycled plastics, the consequent decrease in the demand for EU-made recyclates, mounting economic pressures and excessive red tape are driving an increasing number of EU recyclers out of business. This is leading to a decrease in production and recycling capacity, compromising the survival of this strategic sector.
By the end of 2025, the territory is expected to have lost recycling facilities, amounting to almost one million tonnes of recycling capacity since 2023. Between January and July 2025, alone, almost the same amount of capacity as in the whole of 2024 was lost, and three times more than in 2023. 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. The Netherlands, Germany and the United Kingdom have been the most affected by this downward trend.
These figures are proof of the damaging effects of the recession on the European plastics recycling sector. To revive demand for EU recyclates and prevent further closures, policymakers must urgently implement trade and market defence mechanisms, ensure consistent EPR rules, and strictly enforce third-party certification and harmonised penalties for non-compliant materials.
This must be paired with measures that alleviate economic pressures for recyclers – such as access to inexpensive, clean energy – and a reduction of red tape to obtain and renew permits. Strengthening customs controls and including targeted incentives for investment are also critical to restoring the sector’s competitiveness.
The time to act is now. The collapse of the European plastics recycling sector would cause irreversible damage to the environmental progress and innovation achieved over the past decade, jeopardising the achievement of the EU’s climate goals and its long-term competitiveness.
NEWS
