Plastics Recyclers Europe warns of recycling plant shutdown
The European plastics recycling industry is “facing imminent collapse” due to a surge in cheap imports, shrinking demand for EU-made recyclates, rising economic pressures, and excessive red tape, according to industry organisation Plastics Recyclers Europe (PRE).
In a recent warning, PRE said that by the end of 2025, Europe is expected to have lost nearly one million tonnes of recycling capacity compared with 2023. Between January and July 2025 alone, almost as much capacity disappeared as during the whole of 2024 – three times the level seen in 2023. The Netherlands, Germany, and the United Kingdom have been among the hardest-hit markets.
The organisation described the trend as “proof of the damaging effects of the recession” on the sector, noting that for the first time in years, forecasts point to zero net growth. PRE warned this signals a critical slowdown in Europe’s transition toward a circular economy.
To avoid further closures, the group is urging policymakers to act quickly by introducing trade and market defence mechanisms, ensuring consistent extended producer responsibility (EPR) rules across member states, and strictly enforcing certification and penalties for non-compliant materials. PRE also called for cheaper access to clean energy, streamlined permitting procedures, stronger customs controls, and investment incentives to restore competitiveness.
According to PRE, without decisive action, Europe risks undoing a decade of environmental progress and jeopardising its climate targets. “The collapse of the European plastics recycling sector would cause irreversible damage to the environmental progress and innovation achieved over the past decade, jeopardising the achievement of the EU’s climate goals and its long-term competitiveness,” states the organisation.