European plastics manufacturers are falling behind their global competitors, according to the industry association Plastics Europe. Not only had there been a steeper-than-expected downturn in the production of plastics in the region in 2023, but for the first time the amount of mechanically recycled plastics in Europe had also decreased last year.
According to the association's 2024 "Plastics – the fast Facts" fact sheet, 7.1 million tonnes of mechanically recycled post-consumer plastic was produced last year in the EU27, Switzerland, Norway and the UK. This is a reduction of nearly 8 per cent compared to 2022. Chemical recycling accounted for around 120,000 tonnes of plastics in 2023, similar to the prior year. The production of bio-based and "bio-attributed" plastics increased slightly to 800,000 tonnes.
Total European plastic production also dropped last year, falling 8 per cent from 59 million tonnes in 2022 to 54 million tonnes. By contrast, global plastic manufacturing output climbed by over 3 per cent in 2023. Accordingly, European producers' combined market share fell to 12 per cent.
Plastics Europe puts the total amount of plastics produced globally last year at 414 million tonnes. Some 374 million tonnes of that production volume were made using primary fossil feedstocks.
Growth in circular plastics insufficient to meet roadmap targets
"Circular plastics" consisting of recycled post-consumer material and bio-based and bio-attributed plastics still made up a larger share of total plastics production in Europe than in any other region globally. However, at 14.8 per cent, this share had increased by only 0.7 per cent since 2022, signifying a decelerating trend and falling short of the growth required to meet the ambitions of the industry's Plastics Transition roadmap, said Plastics Europe.
The organisation raised concerns regarding the impact of imports on circularity within the region. The association argues that the "sharp increase in imports of plastic resins and finished goods from regions with less stringent environmental standards, caused by global overcapacity in plastics production, is undermining the business case for European plastics recycling and the transition to a circular plastics system". Europe had been a net importer of plastics resins in tonnage terms since 2022.
The association notes that European manufacturers have also been dealing with several factors driving up production costs including high energy and feedstock prices, persistent inflation and limited circular feedstock availability. Similar concerns regarding high operating costs in the EU and increasing plastics imports were also raised recently by Plastics Recyclers Europe.
Level playing field with international competitors
"To avoid a worrying slowdown in Europe’s transition we need urgent measures to make investments in circular plastic production more attractive, reduce red tape for instance due to excessively long permitting procedures and create a level playing field with our international competitors. Despite the challenges, we remain fully committed to progress towards the circularity and net zero ambitions of our ‘Plastics Transition’ roadmap. We now need EU and Member State policymakers to send an immediate and unambiguous message to investors and the market that they also remain committed to plastics manufacturing in Europe and our transition journey," said Virginia Janssens, Managing Director of Plastics Europe.
"The EU’s transformation to a circular plastics system is in acute danger from imported plastics which do not always meet EU standards," cautioned Marco ten Bruggencate, President of Plastics Europe and President Dow EMEAI. "The hard truth is that we already see EU manufacturing plants being shut down, leading to offshoring of the industry, jobs and sustainable investments. The circularity transition will only be successful if policymakers urgently implement the framework conditions needed to regain our competitiveness and provide an attractive long-term perspective for circularity investments. The window of opportunity is narrow and the time for bold action is now", Mr ten Bruggencate added.
Acceptance of chemical recycling and mass balance accounting methods
To address the challenges faced by the European plastics industry, the association is calling for a supportive EU policy and regulatory framework. In Plastics Europe's view, it must include ambitious mandatory recycled content targets and accept the use of mass balance accounting methods and innovative recycling methods like chemical recycling.
Policymakers could also support a circular European plastics market by simplifying permitting procedures for low-carbon circular industrial installations, and introducing monitoring and certification schemes to ensure that imports meet EU standards. There was also a need to further evaluate fiscal and economic measures in the EU and member states to urgently make circular plastics production in Europe competitive, said Plastics Europe.
The European plastics value chain currently supports more than 1.5 million jobs across 51,700 companies. It generated more than €365bn in turnover within the EU in 2023, according to Plastics Europe.
