Plastics Recyclers Europe (PRE) warned in its report of 27 August 2025 that the European plastics recycling industry is ‘on the verge of collapse’, stating that the surge in imports of cheap recycled plastics, the associated decline in demand for recycled materials produced in the EU, mounting economic pressure and excessive bureaucracy are forcing more and more producers of recyclates in the EU to shut down their operations.

By the end of 2025, nearly 1 million t of waste recycling capacity in the EU is expected to be lost compared with 2023. According to PRE, from January to July 2025 alone, almost as much capacity was lost as during the whole of 2024, and three times more than in 2023.

The organisation states that forecasts for 2025 indicate zero net growth after many years of expansion, with the Netherlands, Germany and the UK being the most affected countries. To revive demand for secondary materials in the EU and prevent further plant closures, PRE says policymakers must urgently implement trade and market protection mechanisms, ensure unified extended producer responsibility (EPR) rules, and strictly enforce third-party certification and harmonised penalties for non-compliant materials.

PRE adds that this should be accompanied by measures to ease economic pressure on recyclers, such as access to affordable clean energy, as well as reducing bureaucratic procedures for obtaining and renewing permits. Strengthened customs controls and the inclusion of targeted investment incentives are considered critical to restoring the sector’s competitiveness.

In March, PRE warned that plastics recycling in the EU was ‘on the brink of collapse’, noting the slowest growth in recycling capacity in Europe in recent years due to declining domestic production, rising imports and plant closures under economic pressure.

Reportedly, higher material and energy prices have driven up operating costs in recent years, creating favourable conditions for cheaper imported materials, which currently account for more than 20% of polymer consumption in the EU, including both virgin and recycled polymers.