Plastics Europe sounds alarm on declining EU market, stalled circular progress

Plastics Europe used the release of its Plastics Fast Facts 2025 at the K show to issue a strong warning: Europe's plastics industry is in decline, and only swift action from the European Union can reverse course.

I stand before you representing an industry responsible for 90 percent of the polymer production in Europe a sector that is essential to Europe's competitiveness, supplying automotive, renewables, batteries, health care, packaging, the list goes on," said Virginia Janssens, managing director of Plastics Europe.

The group reported that Europe's global market share in plastics production has fallen from 22 percent in 2006 to just 12 percent in 2024. Circular plastics production is stagnating, stuck at 15 percent of total production.

Without intervention, Janssens warned, Europe risks becoming overly reliant on imports while losing industrial leadership to China and other parts of Asia. Supply chains in sectors like automotive and construction are particularly vulnerable.

"Without urgent action, Europe will lose a vital manufacturing asset, its strategic autonomy and its circular transition.

While fossil-based plastics still dominate globally, mechanically recycled plastics and those made from bio-based or carbon-captured feedstocks are gaining ground. Mechanical recycling rose 12.7 percent year over year, reaching 41 million metric tons, according to the report.

Global plastics production remains heavily weighted toward Asia, which holds 55 percent of market share, followed by North America at 16.4 percent. Europe lags behind and is seeing limited gains not from circular growth, but from reduced fossil-based output.

Plastics Europe also raised concerns about the economic health of the sector. The industry still employs 1.5 million workers across 50,650 companies in Europe, but 3,000 firms have closed since 2022, resulting in 35,000 lost jobs.

Policy priorities and action plan

Plastics Europe is calling on EU policymakers to take the following urgent steps:

• Tackle the energy cost crisis.

• Add chemicals and polymers to the EU Emissions Trading System (ETS) compensation list.

• Reinvest ETS revenues into circular and net-zero innovation.

• Strengthen trade and import legislation, including third-party certification of imports to ensure environmental and labor standards.

• Guarantee the free flow of goods and raw materials within the internal market.

• Improve real-time monitoring of trade flows to combat unfair practices.

• Raise recycled-content targets and provide economic and fiscal incentives at both EU and member state levels.

Janssens stressed that plastics remain critical to European industry and innovation and that supporting local production is a matter of strategic importance.

source : Plastics News /Sustainable Plastics