Europe’s Recycling Industry in Crisis: Cheap Imports and Red Tape Push Plastic Recyclers to the Brink
Europe’s plastic recycling industry is facing an existential crisis, with bankruptcies spreading across the sector and production capacity falling at alarming speed, according to the Plastics Recyclers Europe (PRE).
The association warns that a flood of cheap imported recycled plastics is undermining demand for EU-produced recyclates, while mounting economic pressure and excessive bureaucracy are forcing domestic recyclers out of business. The closures are eroding both production and recycling capacity, threatening the survival of what Brussels has called a “strategic industry.”
Collapsing Capacity After Years of Growth
PRE data show that between 2023 and the end of 2025, Europe will have lost nearly 1 million tonnes of recycling capacity. In the first seven months of 2025 alone, capacity losses almost matched the full-year total of 2024 and were three times higher than in 2023. After years of rapid expansion, the sector will post zero net growth this year, marking a sharp reversal in momentum toward a circular economy. The hardest-hit markets are the Netherlands, Germany, and the UK.
From Expansion to Survival Mode
The contraction highlights the destructive impact of Europe’s economic downturn on recyclers. Factories are shutting down, investments are drying up, and supply chains are fraying. PRE cautions that without urgent intervention, a decade of progress and innovation risks being irreversibly lost, jeopardizing both the EU’s climate goals and its industrial competitiveness.
Policy Gaps and Urgent Demands
To stabilize the sector, PRE is calling on policymakers to implement trade and market defense mechanisms, enforce consistent Extended Producer Responsibility (EPR) rules, mandate third-party certification, and apply uniform penalties for non-compliant materials.
Beyond trade and compliance, the association recommends a suite of measures to lower costs and restore confidence, including cheap access to clean energy, streamlined permitting, tighter customs enforcement, and targeted investment incentives.
A Strategic Test for Europe
The message is clear: “Now is the time for action,” PRE warns. Without decisive measures, Europe’s recycling sector could collapse under the weight of global competition and internal inefficiencies. That would leave the EU dangerously exposed—both in its ability to deliver on climate targets and to sustain a competitive green industry base.
In short, Europe’s recycling industry is no longer expanding—it is fighting for survival. Whether policymakers step in decisively will determine if the continent can remain on track toward a circular economy, or if it will cede the field to cheaper, less sustainable imports.
2026-09-11
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