Europe’s Plastics Industry In ‘Severe Decline’

Despite a slight stabilisation in production volumes in 2024 (+0.4%, to 54.6 Mt), after a record contraction in 2023 (-7.6%), Europe’s global market share has plummeted from 22% in 2006 to just 12% in 2024, ESM Magazine reports.

Industry turnover also sharply decreased – by 13% – from €457 billion in 2022 to €398 billion in 2024, according to figures published in Plastics the Fast Facts 2025: Global and European plastics production and economic indicators.

Asia Now Dominates

This decline stands in stark contrast to an industrial boom in other regions, with global plastics production increasing by 4.1% last year and 16.3% since 2018.

Asia now dominates, producing 57.2% of the world’s plastics, with China alone accounting for 34.5% – nearly triple the entire EU output.

European plastics manufacturers are grappling with crippling energy costs, climate-related taxes, and high feedstock prices, leading to eroding competitiveness, asset sales, and closures.

While the EU27’s negative trade balance in plastic polymers improved marginally in 2024, changing global tariff regimes – particularly with the United States as a key trade partner – pose significant threats.

Europe’s once-leading position in circular plastics is now being eclipsed by China and the rest of Asia. Although circular plastics accounted for 15.4% of EU production in 2024, this primarily reflects an 18.9% decline in fossil-based production since 2018, rather than a substantial expansion of circular capacity.

In 2024, total EU circular plastics production remained flat, at 8.4 Mt. Mechanical recycling saw only a modest 2.7% increase, chemical recycling remained static, and bio-based plastics declined by 25%, due to competition from subsidised biofuels.

In contrast, global circular plastics production surged to 43.9 Mt in 2024, exceeding 10% of the total global output for the first time, with China producing nearly double Europe’s volume.

A ‘Pivotal Moment’

Benny Mermans, president of Plastics Europe, warned that the industry is at a “pivotal moment”, requesting “urgent political support and frameworks to reinvigorate investment and secure resilient and competitive supply chains”.

Mermans stressed that swift, decisive action is critical to protect local plastics production and strategic sectors reliant on the industry.

Virginia Janssens, managing director of Plastics Europe, called for EU and national policy actions to address the energy crisis, strengthen border enforcement, and promote investment in circular plastics production within Europe.

This includes fostering strong market demand for circular plastics through ambitious recycled-content targets and establishing the Chemicals and Plastics Trade Observatory for real-time monitoring and timely trade defence measures.

Janssens further stated, “Decarbonisation and circular transition is stalling in the absence of clear policy support,” stressing the need for all available recycling technologies and effective market pull measures to achieve competitive scale.

She concluded that a competitive European plastics sector today is essential to unlocking the investments required for tomorrow’s circular economy.

Plastics Europe is an organisation representing plastics manufacturers in the EU27, Norway, Switzerland, and the UK.