Europe's Plastic Circular Transformation Hits A Sudden Brake: Growth Rate Plummets, 70% Of Waste Plastic Is Still Burned Or Buried

Europe's plastic circular transformation hits a "sudden brake": growth rate plummets, 70% of waste plastic is still burned or buried

According to reports, in May, Plastics Europe released its biennial report, "Europe Analysis of the Plastic Circular Economy," revealing the latest data and insights on Europe's plastic circular transformation for 2024, covering trends in circular plastic production, processing, consumption, trade, and waste management.

The core findings of the report show that, due to intensified global competition, the pace of plastic circular transformation in Europe has slowed significantly:

In 2024, Europe's recycled plastics production accounted for 15.8% (8.7 million tons) of total plastic production;
The growth rate of recycled plastic production will drop from 13.6% in 2022 to 1.2% in 2024;
The growth rate of recycled plastic demand will drop from 16.2% in 2022 to 4% in 2024;
Europe's recycling rate of plastic waste has risen to 29.6%, but 70.4% of recycled plastic waste is still landfilled or incinerated.

The latest trade data also highlights Europe's heavy reliance on external value chains for plastics transformation:

19% of the recycled plastic required by plastic processing companies relies on imports;
12.4% of plastic waste recycled in Europe is shipped overseas for recycling;
Fossil-based plastics are more dependent on foreign sources, with 25% relying on imports.

Rob Ingram, Chairman of the European Plastics Association and CEO of INEOS Olefins & Polymers Europe, said: "What is very concerning is that just as Europe should be accelerating its transition to a circular economy, we are seeing a sharp slowdown. Due to high energy and raw material prices, carbon emission costs, and a lack of fair trade, European plastic manufacturers are falling into a 'survival mode.' Our value chain cannot make the necessary investments for circularity; We are witnessing Europe achieve decarbonization through 'deindustrialization.' If this destructive trend is not reversed, Europe will not be able to achieve its climate goals. "

Europe still holds the highest share of recycled plastics in the world (15.8%) of total plastic production, but its leading position is mainly due to a sharp decline in fossil-based plastic output-from 2022 to 2024, Europe's fossil-based plastic output fell by 8.3% (43.3 million tons).

Virginia Janssens, Managing Director of the European Plastics Association, believes: "If we continue to export valuable sorting waste plastics while importing recycled materials, we will simultaneously undermine our industrial base and climate goals." We must create commercial viability for circular plastics by increasing economic attractiveness, allowing Europe to retain and recycle its own plastic waste. Supportive and appropriate laws and regulations are key to achieving this goal. "The Gulf crisis once again highlights how vulnerable Europe is when facing fossil resource shocks, and proves that a strong European circular plastics economy is not just a 'bonus,' but 'indispensable.' Plastic waste is a valuable resource that gives Europe the opportunity to become a resource-rich continent. Now is the time to regain leadership in the circular economy, starting with keeping strategic resources within Europe. "

Although the recycling rate has risen to 29.6%, Europe still has over 70% of recycled plastic waste incinerated (16 million tons, accounting for 48.9%) or landfilled (7 million tons, accounting for 21.5%). These valuable circular raw materials, which could have reduced Europe's dependence on fossil resources, ultimately failed to enter closed-loop utilization. Although the European Commission recognized the strategic importance of plastic manufacturing in the Industrial Acceleration Act, the current policy framework lacks the market signals, scale, and speed needed to reverse the trend.

The report calls on the EU and all member states to take immediate action to restore industrial competitiveness and leverage large-scale circular plastics investment. This requires addressing the energy and emission cost crisis, ensuring fair trade and fair competition, stimulating demand for circular plastics through strong market-driven measures, and unlocking the economic potential of a unified EU market.

Janssens emphasized: "The transition to a plastic circular economy must become Europe's top priority. The Circular Economy Act must truly drive change, making circularity an attractive business opportunity in Europe. If urgent action is not taken, Europe will miss the dividends of its own circular transformation, and its industrial and economic value will be seized by other regions. Circularity is not just an environmental goal, but also an industrial goal. "She added, "Europe is home to some of the world's most innovative and forward-looking plastics manufacturers and has always been a pioneer in the transition to circular plastics systems. With proper support, we can build a thriving local plastic recycling system to support the development of Europe's next-generation industries, ensuring economic resilience and industrial security. "