The European plastic recycling industry is facing ‘imminent collapse’, Plastic Recyclers Europe warns.
Plastics Recyclers Europe is an organisation representing European plastics recyclers who reprocess plastic waste.
A recent report by the organisation found that the plastics recycling industry in Europe generates over €9.1 billion in turnover.
The industry represents 13.2 million tonnes of installed recycling capacity, around 850 recycling facilities, and over 30,000 employees.
Plastics Recyclers Europe says 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.
The organisation warns this is leading to a decrease in production and recycling capacity, and ‘compromising the survival’ of the sector.
Reacting to the announcement, James McLeary, Managing Director of Biffa Polymers, warned that the UK is at a ‘critical inflection point’.
The UK must act now to protect its recycling infrastructure, workforce, and environmental commitments.
“We are exporting not just plastic waste, but our responsibility. The failure of international negotiations only reinforces the need for domestic leadership,” McLeary said.
“The UK must act now to protect its recycling infrastructure, workforce, and environmental commitments.”
Plastics Recyclers Europe expects the territory is expected to have lost almost one million tonnes of recycling capacity since 2023.
Plastics Recyclers Europe says between January and July 2025, almost the same amount of capacity as in the whole of 2024 was lost, and three times more than in 2023.
The organisation says 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.
Plastic Recyclers Europe says 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.
The organisation warns the collapse of the European plastics recycling sector would cause ‘irreversible damage’ to the environmental progress.