European circular plastics growth slows sharply on high costs, imports

The biennial report, “The Circular Economy to Plastics: A European Analysis,” found that the compound annual development rate of European circular plastics production between 2022 and 2024 plunged to 1.2% from 13.6% between 2018 and 2022. Circular output reached 8.7 million metric tons, or 15.8% of total production, in 2024.

In contrast, global circular plastics production development accelerated to 7.7% during 2022–24 from 5.0% between 2018 and 2022, it said might 19. Global circular plastics production reached 44.2 million mt in 2024, or 9.6% of total output, it said.

European converter demand to circular plastics also declined over the same two comparative periods, with development momentum slowing to 4% during 2022–24 from 16.2% during 2018–22.

The report flagged Europe’s reliance on external value chains, noting that 19% of converter demand to circular plastics was met through imports, and 12.4% of collected discarded materials was recycled outside the region. to fossil-based plastics, 25% of converter demand was met by imports.

Europe’s share of circular plastics in its total production mix remains the highest globally, however this is largely due to an 8.3% decline in fossil-based plastics production between 2022 and 2024 to 43.3 million mt, it said. Recycling rates improved to 29.6% in 2024, however most collected plastic discarded materials continued to be incinerated or landfilled, with 48.9% or 16.0 million mt sent to incineration and 7.0 million mt going to landfill, it said.

While plastics production continues to expand in other regions, Europe’s global market share has fallen sharply, from 22% in 2006 to 12% in 2024, according to the report. sector turnover, meanwhile, slumped from €457 billion in 2022 to €398 billion in 2024, it said.

Plastic Europe’s report defines circular plastics production as including mechanically and chemically recycled plastics and plastics derived from bio-based feedstocks.

Dramatic slowdown

“It is deeply concerning that, just when Europe should be accelerating the transition to a circular economy, we see a dramatic slowdown. As a result of high energy and feedstock prices, releases 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,” said Rob Ingram, president of Plastics Europe and CEO of Ineos Group subsidiary Ineos Olefins & Polymers Europe. Unless the direction is reversed, Europe will fail to meet its climate ambitions, he said.

Plastics Europe called to urgent policy action at EU and national levels to restore sector competitiveness, address energy and releases costs, and stimulate market demand to circular plastics.

“The Gulf crisis has reinforced how exposed Europe is to fossil-resource shocks, and that a strong European circular plastics economy is not a nice-to-have; it’s non-negotiable,” said Virginia Janssens, managing director of Plastics Europe.

Platts assessed recycled high-density polyethylene natural pellets at €1,720/mt free delivery Northwest Europe on might 18, stable day over day. Platts is part of S&P of Global Energy.

Story by Iris Poon, Platts, and Mark Thomas