Europe’s plastics recycling sector is experiencing its sharpest downturn in recent years, with capacity losses and plant closures continuing into 2025, according to industry data.

The European plastics recycling industry is facing an increasingly difficult period, as new data show a significant decline in activity across the sector. According to industry analysis published by Let’s Recycle, 2024 marked the steepest contraction in recent years, with early indicators suggesting that negative trends have persisted throughout 2025.

Recyclers across Europe are struggling with weak demand, high operating costs and intense competition from low-priced virgin polymers. As a result, several facilities have reduced output or exited the market altogether, leading to a net loss of recycling capacity at EU level.

Industry representatives warn that this situation poses a serious risk to Europe’s circular economy objectives. Without stronger demand-side measures and clearer enforcement of recycled-content requirements, the gap between sustainability targets and market realities is expected to widen further.

The ongoing decline highlights structural vulnerabilities in the recycling value chain and raises concerns about the long-term resilience of the European plastics recycling industry.