Europe’s Plastics Industry Faces “Cliff Edge” as Competitiveness Crumbles
According to a new report released by Plastics Europe, the continent’s plastics manufacturing sector is experiencing a severe downturn, marked by a steep drop in global market share, declining turnover, and a slowdown in circular transition efforts. The findings, published in Plastics – the Fast Facts 2025, indicate that despite a modest 0.4% recovery in production volumes in 2024—following a 7.6% contraction in 2023—Europe’s position in the global plastics market continues to weaken.
As reported by the association, Europe’s share of global plastics production has fallen from 22% in 2006 to just 12% in 2024, while industry turnover dropped by 13% over two years, from €457 billion in 2022 to €398 billion in 2024. By contrast, global plastics output increased by 4.1% in 2024, led by Asia, which now accounts for 57.2% of global production. China alone represents 34.5%—nearly three times the EU’s total output.
“Europe’s plastics industry stands at a pivotal moment,” said Benny Mermans, President of Plastics Europe. “Swift, decisive action is critical to secure the future of local plastics production and protect the strategic sectors relying on Europe’s plastics industry.”
The report points to high energy prices, climate-related taxes, and costly feedstocks as the main factors eroding Europe’s industrial base. Although the EU27’s trade deficit in plastic polymers narrowed slightly last year—from 0.8 million tonnes to 0.2 million tonnes—pressures from shifting tariffs and global import competition remain significant.
In comments cited by Plastics – the Fast Facts 2025, Virginia Janssens, Managing Director of Plastics Europe, warned that “the European plastics industry is at a cliff edge as competitiveness collapses,” urging EU policymakers to decide whether Europe will lead the global circular transition or continue to deindustrialise.
While Europe once led in circular plastics innovation, its transition is now losing momentum. Total EU circular plastics production remained flat at 8.4 million tonnes in 2024, with mechanical recycling up just 2.7%. Chemical recycling showed no major progress, while bio-based plastics fell by 25% due to feedstock competition from subsidised biofuels. In contrast, global circular plastics output surged to 43.9 million tonnes—over 10% of total production—for the first time, with China producing nearly double Europe’s volume.
Plastics Europe is calling for urgent EU and national policy measures to tackle the energy cost crisis, strengthen enforcement at EU borders, and stimulate demand for recycled materials through clear targets and incentives. The group also proposes establishing a Chemicals and Plastics Trade Observatory to monitor real-time trade flows and enable rapid responses to unfair competition.
Industry analysts note that Europe’s policy and cost environment risks driving more manufacturing capacity overseas, undermining both industrial resilience and climate goals. As Asia scales up advanced recycling and the United States leverages low-cost energy to expand polymer production, Europe’s strategy faces a decisive crossroads. Without swift, coordinated action, the continent could lose its leadership in sustainable materials—a shift that would affect multiple sectors, from automotive to packaging.
