{"id":9693,"date":"2025-10-09T02:30:43","date_gmt":"2025-10-09T06:30:43","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=9693"},"modified":"2025-10-09T02:30:43","modified_gmt":"2025-10-09T06:30:43","slug":"europes-plastics-sector-pleads-for-action-as-downturn-deepens","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=9693","title":{"rendered":"Europe\u2019s plastics sector pleads for action as downturn deepens"},"content":{"rendered":"


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The industry says predictable policy would restore confidence, spur investment and keep plastics value chains running. \/ Credit: PawelKacperek via Shutterstock<\/figcaption><\/figure>\n<\/p><\/div>\n

Europe\u2019s plastics industry says it is sliding deeper into recession and has called on the European Union to intervene to prevent more plant closures and job losses.<\/p>\n

Trade group Plastics Europe warns the sector is \u201con a cliff edge\u201d, citing falling production, shrinking global market share and weaker recycling economics as energy and feedstock costs stay high.<\/p>\n

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Market pressure and declining output<\/h2>\n

Data compiled by the industry show European plastics production fell sharply in 2023 and only inched up in 2024, leaving the region\u2019s share of global output down to roughly 12% as Asian capacity\u2014particularly in China\u2014expanded.<\/p>\n

\u00a0Turnover also declined, reflecting subdued demand in construction, automotive and consumer goods.<\/p>\n

The group argues these trends amount to a manufacturing recession that threatens Europe\u2019s position in polymer production and plastic packaging supply chains.<\/p>\n

Recycling sector at risk amid policy uncertainty<\/h2>\n

Recyclers report accelerating plant closures and stalled investment across mechanical and chemical recycling, blaming weak demand for recyclate, low-priced imports and uncertainty around EU rules for measuring recycled content.<\/p>\n

Industry bodies estimate that Europe could lose close to 1 million tonnes a year of recycling capacity by the end of 2025 without corrective measures.<\/p>\n

Recent investment pauses by large producers underscore the policy risk, stakeholders say.<\/p>\n

What industry wants from Brussels<\/h2>\n

Plastics Europe and allied organisations are pressing for short-term relief on energy and carbon costs, consistent extended producer responsibility rules, stronger trade defences against under-priced imports and clear, workable methods for accounting recycled content.<\/p>\n

They also want the EU to treat plastics manufacturing and plastics recycling as strategic industries in the wider industrial policy agenda to stabilise output and protect jobs across the value chain.<\/p>\n

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