Industry organisations are warning that the European plastics value chain is at breaking point and are urging decisive action from EU policymakers. In a joint letter to Commission President Ursula von der Leyen and other senior EU executives, 28 industry associations and companies have put forward six strategic recommendations to strengthen and safeguard the competitiveness of Europe’s plastics and plastics recycling sectors.
The signatories include organisations such as Plastics Europe, Plastics Recyclers Europe (PRE), the European Recycling Industries' Confederation (EuRIC) and the European Waste Management Association (FEAD) as well as national associations. They describe the current situation as a "defining moment" and a crossroads for the future of the plastics sector in Europe. Without rapid intervention, they fear further declines in production, bankruptcies and job losses. Decades of investment in innovation and plastics circularity are at stake, the say.
"The window of action is closing fast. Without decisive action, Europe will face irreversible damage to its industrial fabric, its leadership in driving the transition to a circular plastics economy, and its long-term global competitiveness", the signatories caution.
Production of primary and recycled plastics in steep decline
According to industry figures, plastics production in Europe fell by 13.3 per cent between 2018 and 2022, with a further 8.3 per cent drop in 2023. "At this rate, EU plastics production could soon fall back to levels not seen since the year 2000, even as polymer consumption continues to rise", according to the letter
The plastics recycling sector is also under strain: since the beginning of 2023, almost one million tonnes of recycling capacity have been lost in Europe due to plant closures. At the same time, the upcoming restrictions on waste plastics exports to third countries "will intensify the need for a strong internal market for recycled plastics", according to the letter.
The current situation is not only a threat to the competitiveness of Europe’s industry, but also its ability to meet circular economy and climate goals," the signatories state.
Root causes: energy prices, import pressure, regulatory gaps
The associations cite soaring energy costs, legal uncertainty, fragmented rules and increasing competitive pressure from low-priced imports as the main drivers of the crisis. Excessive administrative burdens linked to permits and documentation add further strain.
"The threat of de-industrialisation is no longer abstract; it is rapidly becoming a reality", they warn, pointing to recent shutdowns at Vynova, Grupo Antolin and Veolia.
