Transition to circular plastics seriously delayed

Demand for recycled plastics continues to rise. At the same time, the European market for circular plastics is becoming increasingly unbalanced. Recent figures from Plastics Europe show that growth has nearly come to a standstill. The sector is also under pressure in the Netherlands. Packaging in particular remains a key concern for food companies.

European growth slows down

Plastics Europe recently published the report The Circular Economy for Plastics: A European Analysis. It contains the latest figures on plastic production, processing, and recycling in Europe. The slowdown is significant. In 2022, European production of circular plastics still grew by 13.6%. By 2024, that growth had dropped to just 1.2%. Globally, the market is moving in the opposite direction. There, growth increased from 5% to 7.7%.

Last year, Europe produced a total of 8.7 million tons of mechanically and chemically recycled and biobased plastics. As a result, circular plastics now account for 15.8% of total production. Meanwhile, the Netherlands is seeing a sharp decline. Total plastic production fell by 14.4% over two years. As a result, the volume of circular plastics also declined. Production of fossil-based plastics came in at 5.3 million tons.

Demand grows, capacity does not

Despite the cooling market, demand for recycled plastics is still increasing. Dutch processors used more recyclate in 2024 than they did two years earlier. Its share rose from 12.8% to 14.3%. Processing capacity, however, continues to move in the opposite direction. Following a 5% decline in 2022, capacity dropped by another 2.9% in 2024.

According to Plastics Europe, dependence on foreign value chains is also increasing. Currently, 19% of European processors’ demand is met through imports.

Packaging remains the largest stream

For food companies, the packaging figures stand out most. Packaging remains the largest application for plastics in the Netherlands. In 2024, plastic processing volumes reached 886 kilotons. Of that total, 11.9% consisted of post-consumer recyclate.

Differences in waste processing are also becoming increasingly significant. With separate collection, the recycling rate is five times higher than with mixed waste collection. Last year, the Netherlands recycled a total of 685 kilotons of post-consumer plastic waste. Incineration accounted for 405 kilotons.

Plasticseurope.org