May 19, 2026 14:56

One figure sums up the problem: the average annual growth rate of circular plastics production in Europe fell from 13.6% in 2018-2022 to 1.2% in 2022-2024. In volume terms, bio-based and recycled plastics reached almost 8.7 million tonnes in 2024, equivalent to 15.8% of total production.
This slowdown, however, is not evident globally, where annual growth rose over the same period from 5% to 7.7%.

A similar trend, although less pronounced, can be seen in plastics converting, where growth in Europe fell from 16.2% in 2018-2022 to just 4% in 2022-2024.

Another indicator of the difficulty Europe faces in managing material flows is its dependence on foreign markets, which no longer affects only virgin plastics: imports met 19% of converter demand for circular plastics, while 12.4% of the plastic waste collected in Europe was recycled outside Europe. This is a sign that the system is not working properly.

These figures are included, together with other data on production, conversion and trade in bio-based and recycled plastics, in the report “The Circular Economy for Plastics: A European Analysis”, just published by Plastics Europe, the European association of plastics producers.

“It is deeply concerning that, just when Europe should be accelerating the transition to a circular economy, we see a dramatic slowdown,” comments Rob Ingram, President of Plastics Europe and CEO of Ineos Olefins & Polymers Europe. “As a result of high energy and feedstock prices, emissions 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. Unless this highly damaging trend is reversed, Europe will not be able to meet its climate ambitions.”

Despite the slowdown in recent years, Europe still maintains its leadership in circular plastics production, at 15.8% of the total compared with 14.4% in 2022. This result reflects the progressive decline in fossil-based plastics production more than any significant growth in circular plastics: fossil-based production fell by 8.3% between 2022 and 2024, to 43.3 million tonnes.

Although the recycling rate has improved, reaching 29.6%, the Plastics Europe report states that the scale and complexity of the challenge facing policymakers and the plastics industry cannot be underestimated.
More than 70% of the plastic waste collected in Europe continues to be sent to incineration, equal to 16 million tonnes, or 48.9% of the total, or to landfill, at 7 million tonnes, or 21.5%, thereby removing valuable material from the production cycle: a missed opportunity to reduce dependence on fossil resources.

“We must create the business case for circular plastics in Europe, by making it economically attractive to keep and recycle our plastic waste,” notes Virginia Janssens, Managing Director of Plastics Europe (pictured).
“Supportive legislation is a key enabler. It’s time to reclaim ownership of our circular economy, starting with keeping and using strategic resources in Europe.”

Plastics producers reiterated the need for urgent action at European and national level to restore the industry’s competitiveness and unlock large-scale investment in the circular economy. Energy and emissions costs must be addressed, fair trade and a level playing field must be ensured, and strong market demand for circular plastics must be promoted.

“The Circular Economy Act must truly drive change and make circularity an attractive business opportunity in Europe,” says the Managing Director of Plastics Europe. “Without urgent action, we risk losing the benefits of our own circular transition, with other regions capturing the industrial and economic value instead. Circularity is not just an environmental goal, it is an industrial one.”

See also: The Circular Economy for Plastics: A European Analysis (PDF)

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