Europe’s plastic recycling market risks ‘imminent collapse’ without urgent policy action to protect declining capacity and maintain consistent standards across the region, a major trade body warns.
Plastic Recyclers Europe, which represents dozens of specialists working in the sector, said that the industry was on course to see ongoing losses in production capacity that it warns will undermine efforts to create more sustainable supply chains.
A particular concern was raised by the association about the impact of failing to control low-priced imports of recycled plastics that was undermining demand for materials processed in EU markets. This was contributing to economic pressures, which along with what association called “excessive red tape”, were leading to more businesses going out of operation.
Plastic Recyclers Europe cited EU markets such as Germany and the Netherlands, as well as the UK, as examples of countries witnessing a decline in the number of facilities able to domestically produce recycled plastics.
It stated: “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 trade body said that improved support was needed to protect demand for recyclate and ensure sufficient production and processing capacity remains in Europe.
Some of the measures it hopes to see implemented include more consistent rules with regards to extended producer responsibility (EPR) requirements, along with the strict enforcement of third-party certification and issuing of penalties for supplies of materials not complying with regulations.
Plastic Recyclers Europe said issues around enforcement would need to be backed with mechanisms to help recyclers across Europe withstand the current economic pressure they are facing. One measures could include providing access to more affordable, cleaner energy.
It also said it would back a rethink of the current process for renewing permits, while welcoming stronger customs controls for materials failing to meet local requirements.
The trade body stated: “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.”
UK industry concerns
Over the last year, a number of recycling specialists in markets such as the UK have announced plans to scale-back plastic recycling operations through the closure of sites used for reprocessing materials.
This includes Viridor, which has opted to close a plastic reprocessing plant in Avonmouth, Bristol. It has more recently sold off equipment from other operations that were originally intended to support its plastic recycling capabilities.
In July, Biffa called on the Government for a rethink of the support available for UK plastic recycling to aid domestic supply circularity plans. The comments were made following the closure in February of the company’s plastic recycling facility in Washington, Tyne and Wear, as it looked to consolidate its capabilities.
The company has responded to the latest warning from Plastic Recyclers Europe by reiterating the importance of protecting domestic capabilities to handle and reprocess plastics.
James McLeary, managing director of Biffa Polymers, argued that the process of exporting plastic waste was undermining UK ambitions on the environment.
He argued that UK recycling capabilities were even more vital after the recent failure of global talks to agree a global treaty on plastic pollution.
He said: “The UK must act now to protect its recycling infrastructure, workforce, and environmental commitments.”
Biffa says that an estimated 600,000 tonnes of unprocessed plastic waste was exported from the UK each year, where it was outside of the control of environmental legislation.
McLeary said the company was looking to use its UK market position in handling 165,000 tonnes of plastic waste annually to call for the Government to introduce a range of legislative changes.
These should include an overhaul of export standards so that strict eligibility criteria are in place for the materials that can be sent abroad. It also backed raising the Plastic Packaging Tax (PPT) threshold so that charges would apply as soon as possible to goods containing less than 50% recycled material.
Biffa said it would back any plans to amend the packaging recovery note (PRN) system and the PERN equivalent for exports.
McLeary said: “We have a PRN/PERN system that incentivises export over domestic processing, distorting market dynamics and investment signals.”