The transition to circular plastics in Europe is stalling amid increased global competition, according to new data from industry group Plastics Europe.
Unless this highly damaging trend is reversed, Europe will not be able to meet its climate ambitions.
Rob Ingram, president of Plastics Europe and CEO of Ineos Olefins & Polymers Europe
Annual growth in circular production plummeted from 13.6% in 2022 to 1.2% in 2024, while globally growth accelerated from 5% to 7.7%, the biennial report said. During the two-year period, the pace of demand growth from converters also tumbled to 4% in 2024, compared to 16.2% in 2022.
“It is deeply concerning that, just when Europe should be accelerating the transition to a circular economy, we see a dramatic slowdown,” said Rob Ingram, president of Plastics Europe and CEO of Ineos Olefins & Polymers Europe. “As a result of high energy and feedstock prices, emissions costs and a lack of fair trade, Europe’s plastics manufacturers are in survival mode. Our value chain cannot make the necessary investments in circularity; instead, we are witnessing Europe’s decarbonisation through deindustrialisation. Unless this highly damaging trend is reversed, Europe will not be able to meet its climate ambitions.”
In recent years – since Russia invaded Ukraine in 2022 and disrupted supply of oil and gas to Europe, causing energy prices in the region to skyrocket – European manufacturing has been the focus of efforts to shut down older and less efficient production, amid global oversupply and lackluster demand.
In addition to the slowing growth patterns, the report found that waste management trends remain uneven. While recycling of collected plastic waste increased by 11.5% and volumes of plastic waste landfilled decreased by 7.9%, exports of sorted plastic waste surged by 36.5%, with a growing share of EU waste being recycled outside Europe.
Significant findings included:
- Circular plastics production reached 8.7 million metric tons (mt) in 2024, but growth has slowed significantly since 2022
- Despite slowing growth, demand for circular plastics is increasing. Circular content in new products exceeded 15% for the first time, reaching 7.9 million mt. The data show that “we have reached a significant milestone, but one that reflects declining fossil production as much as real growth in circularity,” Plastics Europe noted.
- 19% of circular plastics used in new products are not sourced locally in Europe. The region relies on imports, representing 24% of total demand, because it cannot produce enough, the report said. “Keeping waste in Europe means having strategic autonomy as well as keeping value, jobs and innovation in Europe,” the organization said.
- More of Europe’s recycling is happening elsewhere. The share of EU plastic waste recycled abroad rose to 12.4%, from 9.2%. “This trend underlines the urgent need to scale up domestic recycling capacity and create the right market conditions in Europe.”
- The EU is exporting more of its plastic waste. Exports of sorted plastic waste increased by 36.5%, to 1.5 million mt. “This highlights a growing gap between demand and domestic supply, and a missed opportunity to build a strong EU circular market,” Plastics Europe said.
- Only 29.6% of plastic waste, or 9.7 million mt, was recycled, and more than 70% of plastic waste is still incinerated or sent to landfill.
