Europe’s Plastics Recycling Sector Slumps in 2024 — Capacity Falls to 13.5Mt, Nearly 1Mt at Risk

Europe’s plastics recycling sector records sharp 2024 decline

Europe’s plastics recycling industry experienced its steepest downturn in 2024, with installed processing capacity falling to 13.5 million tonnes (Mt) and turnover sliding 5.5%, according to the annual report from Plastics Recyclers Europe (PRE).

Preliminary indicators for 2025 point to a roughly 50% rise in facility closures, putting nearly 1 Mt of recycling capacity at risk across Europe over the next three years.

Key figures

For the first time on record both feedstock input volumes and recyclate output declined: production fell from 7.7 Mt in 2023 to 7.5 Mt in 2024. Industry turnover decreased from €9.1 billion to €8.6 billion year‑on‑year.

PRE warns that the sector is well short of the roughly 6% annual capacity growth needed to meet forthcoming packaging and waste regulation targets.

Drivers of the decline

PRE attributes the downturn to a combination of factors: high raw material and energy costs, weak market demand for recyclates, and rising volumes of low‑priced, unregulated imports that undercut domestic recyclers. Food‑contact rPET (recycled polyethylene terephthalate) is under particular pressure because strict EU safety requirements limit market access—and the industry says imported material should meet the same standards to ensure a level playing field.

Materials and regional impact

Polyolefin (PO) films and PET were the most affected segments, each accounting for about 25% of closures in 2023–2024. HDPE (high‑density polyethylene) and PP (polypropylene) each represented roughly 15% of closures, with other polymers making up the remaining 20%.

Geographically, about half of the lost capacity was concentrated in the Netherlands and the UK. By country, Germany retained the largest installed capacity at around 2.5 Mt, followed by Spain (≈2.0 Mt) and Italy (above 1.5 Mt). The UK and France each reported between 1.0 and 1.5 Mt, while Poland and the Netherlands were in the 0.5–1.0 Mt range.

Spain continued to lead PO‑films recycling with more than 0.6 Mt. Germany led PET washing capacity at approximately 0.7 Mt, followed by Spain (~0.5 Mt); Italy and France reported between 0.3 and 0.35 Mt.

Outlook and industry response

PRE warns that closures could more than triple by the end of 2025 compared with the 0.14 Mt of capacity lost in 2023. That would deepen risks to jobs, domestic recycling capability and Europe’s circular‑economy goals.

Ton Emans, President of Plastics Recyclers Europe: "Now is the time to stand united for the sector — not only to protect jobs and businesses at risk, but to safeguard Europe’s environmental and technological progress, ensuring a sustainable future for all. We call on EU institutions and national policymakers to act decisively and implement supportive measures to preserve the sector and Europe's circular economy."

Source: Original reporting published by Packaging Gateway (a GlobalData brand), summarised in good faith for general informational purposes. This content is not a substitute for professional advice.