Europe’s plastics industry risks ‘collapsing’ under broken market economics

The organisations’ statement, which comes as part of the ‘Ring the Bell for Recycling’ campaign led by Searious Business, urges policymakers to close the pricing gap which is forcing recyclers out of business and damaging the EU’s circular economy ambitions.

The 111 signatories have set out a number of recommendations for the EU. These include fixing the virgin plastics versus recycled plastics cost imbalance; guaranteeing recyclers’ profitability through fairer, supportive market mechanisms; strengthening import and quality standards; and ensuring that the upcoming Packaging and Packaging Waste Regulation (PPWR) delivers a circular and competitive recycling market.

Recycling industry collapse

Plastic recycling plants have been closing across Europe in recent months, with waste company Biffa closing its Sunderland plant in February 2025, and rival Viridor closing three plants since 2022.

Other recycling companies, such as Borealis and Neste, have dropped plans to construct new plastic recycling plants in Europe. The total loss of plastic recycling capacity since 2023 has been equated at around one million tonnes according to industry body Plastics Europe.

Factors affecting the industry include high energy and labour costs, as well as the cheapness of both virgin and recycled plastic from Asia, in comparison with European recycled plastic.

Loopholes in current UK legislation also mean plastic waste collectors are incentivised to export plastic waste, rather than recycle it within the country, the letter argues. In 2024, the UK exported 600,000 tonnes of plastic waste, 5% more by weight than it did in 2023.

Willemijn Peeters, chief executive of Searious Business, stated: “If plastic recycling is not a viable commercial prospect, it cannot solve the pollution crisis or help us achieve our climate ambitions – it is doomed to fail.

“We all know that recycling alone can’t solve the plastic pollution crisis. But it remains a vital pillar of circularity – and right now, that pillar is wobbling. Unless Europe creates stable, long-term demand for recycled content, we’ll be left with ambition on paper, and plastic in the environment.”