Plastic recycling industry faces existential crisis in Europe as green jobs threatened by dip in production

The plastic recycling sector in the European Union is currently at a critical juncture, facing an existential crisis due to declining production, increasing pressure from cheap imports and growing economic challenges.

In 2024, the rate of recycling plant closures doubled, and this trend continues into 2025, putting thousands of green jobs across the sector at risk.

According to Plastics Recyclers Europe, the industry received €5 billion in investments between 2020 and 2023 to meet sustainability targets.

However, these investments are now at risk due to rising production costs and mounting competition from cheap, low-quality imports. This has led to a drop in recycling rates and a slowdown in progress toward a circular economy.

The biggest impact of this crisis is being felt by the thousands of workers in the industry, including waste sorters, machine operators, engineers and research professionals. This poses a major setback for the EU’s strategy to promote a green economy — particularly at a time when green jobs are seen as key to addressing climate change.

Industry organisations have called for urgent action from the EU. They argue that without strict import controls and the enforcement of transparency and sustainability standards, the sector could fall even further behind. If current trends continue, the EU may fail to meet its own recycling and sustainability targets by 2025.

Ton Emans, President of Plastics Recyclers Europe, stated, “Now more than ever, decisive action is needed.”

He added, “We urge EU policymakers to take swift and strong political action, implement effective import controls, and strictly enforce existing laws — especially to ban imports of materials that do not meet EU sustainability and safety standards. These steps are essential for the survival of the plastic recycling industry, which has invested €5 billion between 2020 and 2023 just to meet mandatory targets.”

In a public statement, Plastics Recyclers Europe also highlighted that “in addition to the severe market conditions, European recyclers are facing soaring energy costs and a rapid rise in input waste prices, significantly increasing operational expenses. Meanwhile, they are being undercut by cheap imported materials, often accompanied by dubious claims due to a lack of source transparency.”

According to the press release, imported recycled and virgin (raw) polymers now account for over 20 per cent of EU polymer consumption, while domestic recycling production of most polymers has declined by five per cent. Alarmingly, EU plastic production levels are expected to fall back to those seen in the year 2000, even as polymer consumption continues to rise.

Recycling plant closures

Simultaneously, plastic waste exports from the EU rose by 36 per cent in 2024 compared to 2022, indicating a shift away from regional recycling efforts.

These trends have resulted in the slowest growth in plastic recycling capacity in recent years, while the number of facility closures continues to climb.

The total capacity of facilities shut down in 2024 was double that of 2023, and conditions are worsening in 2025 — affecting businesses of all sizes.

These negative market trends have severely damaged the industry. Recycling rates have declined, circular practices are being hindered, and reliance on unstable production methods is growing. As a result, the EU is falling short of its 2025 recycling and sustainability goals.

If plastic recycling is not recognised as a strategic sector and if effective trade protection measures are not implemented to shield European production from further market disruption, the industry will continue to weaken.

This will jeopardise the EU’s circular plastics economy, its resource self-sufficiency and its commitment to green jobs.