European recycling associations warn of severe economic pressure on the plastics recycling sector and call for urgent measures to support demand and protect existing capacities.

European plastics recyclers have issued a strong warning regarding the current economic situation of the sector. According to an official position published by Plastics Recyclers Europe, weak demand for recycled plastics, combined with intense competition from lower-priced virgin polymers and high operational costs, is putting the viability of many recycling facilities across the EU at risk.

Industry associations are calling on the European Commission and Member States to implement urgent support measures, including mechanisms that stimulate real and predictable demand for recycled materials. Without such interventions, recyclers warn that further capacity closures are likely, leading to the loss of investments, industrial know-how and regional processing capabilities.

From a strategic standpoint, the situation appears increasingly contradictory to the EU’s circular economy objectives. While legislation sets ambitious recycling and recycled-content targets, insufficient demand for recycled plastics undermines the economic sustainability of the sector. For recyclers and processors in Central and Eastern Europe, the current market conditions add another layer of uncertainty and continue to delay investment decisions.