The German plastics industry has been under pressure recently. High costs, sluggish demand, and increasing competitive pressure are placing a strain on companies, stated the Plastics Europe Germany association at a press conference last Wednesday. Urgent investment is needed, such as in competitive and renewable energy supply, to alleviate the pressure on the sector.
Although plastic production in Germany increased by 3% in 2024, it still lags significantly behind the pre-crisis level of 2021. Due to reduced producer prices, the industry’s sales decreased by 3%, from €27.5 billion to €26.7 billion. Exports declined by 0.8%, while imports fell by 4.9%. In particular, the volume of incoming orders from domestic sources was weak, whereas orders from abroad saw a slight increase.
Forecast for 2025: a rapid recovery is unlikely.
While moderate growth of the global economy is anticipated, the situation in Germany remains tense. ‘To date, we expect a decrease in plastic production in virgin forms of around 0.5% compared to the previous year,’ explained Dr. Ralph Düsseldorf, Chairman of the Association. ‘Investments in competitive energy prices, expanded use of renewable energy sources, and investment incentives are indispensable levers for revitalising the economy as a whole and the plastics industry specifically,’ said Düsseldorf. ‘Germany still offers ideal conditions for research and development. A well-established value chain, short supply routes, and close ties with institutions are assets that benefit companies in Germany and Europe. However, the importance of the plastics industry must be recognised at the political level, both in Germany and, for instance, within the framework of the European Clean Industrial Production Programme.’