High costs hinder circular ambitions of the plastics industry

The European plastics industry is under pressure. New data from Plastics Europe reveals significant declines in both plastics production and mechanically recycled plastics in 2023. This marks the first time recycled plastics production has dropped, while global plastics production continues to grow.

Declining production and rising imports

In 2023, total European plastics production fell by 8.3% compared to the previous year, amounting to 54 million tons. Mechanically recycled plastics production decreased by 7.8%, reaching 7.1 million tons. Once a leader in circular plastics, Europe saw its share of the global market shrink further to 12%. At the same time, imports of plastic products from regions with less stringent environmental standards are increasing. This adds further strain to the European recycling sector, weakening the business case for circular production.

A threat to jobs and innovation

The impact of this trend extends beyond the industry itself. Europe’s plastics system supports over 1.5 million jobs and generated more than €365 billion in revenue in 2023. However, experts warn that high energy costs, strict regulations, and lengthy permitting processes are undermining a competitive playing field. Plastics Europe stresses the need for strong policy measures to prevent further factory closures and the relocation of jobs overseas.

Marco ten Bruggencate, President of Plastics Europe, and Virginia Janssens, the organization’s Managing Director, both emphasize the urgency of action. They call on policymakers to tighten recycling targets, ensure imports comply with EU standards, and make investments in circular production methods more attractive. The risk? Europe could lose its leadership position in sustainable plastics.

View the report  ‘Plastics – the fast facts’.
Plasticseurope.org