Europe's plastics industry is facing serious challenges that have left it "on the brink of the cliff," according to Plastics Europe. The trade association warns of a loss of global market share, falling revenues, and a slow circular transition, while China's growth accelerates.
A recent report, Plastics the FastFacts 2025, shows that despite a modest rebound in production volumes in 2024 (+0.4% to 54.6 million tonnes) following a sharp contraction in 2023 (-7.6%), Europe's share of global plastics production has dropped from 22% in 2006 to a projected 12% in 2024.
Revenues have also declined sharply, from €457 billion in 2022 to €398 billion in 2024, a 13% decrease. While Europe's plastics sector continues to shrink, production is growing elsewhere: global output rose 4.1% last year and 16.3% since 2018. Asia now produces 57.2% of the world's plastics, with China alone accounting for 34.5%, more than three times the entire European Union's output.
Benny Mermans, president of Plastics Europe, notes that investment and innovation are on the rise in other regions while Europe experiences declines in both revenue and output. The industry attributes much of this to soaring energy costs, environmental taxes, and high prices for essential raw materials.
On a more positive note, the EU's negative trade balance in plastic polymers improved from -0.8 million tonnes in 2023 to -0.2 million tonnes in 2024, thanks to a 10% increase in exports. Still, global tariff regimes remain a concern, with the United States representing the main source of polymer imports for Europe.
Virginia Janssens, managing director of Plastics Europe, emphasizes the strategic importance of plastics within the European industrial landscape, citing their essential role in resilience, innovation, and competitiveness. She stresses the need to maintain local production capacity to prevent dependencies that could jeopardize Europe's security.
In 2024, circular plastics represented 15.4% of EU production, but progress remains slow as fossil-based plastics decline and competition from bio-based materials increases. Total circular plastics output held steady at 8.4 million tonnes, with mechanical recycling up just 2.7% to 7.7 million tonnes.
Meanwhile, global circular plastics production reached 43.9 million tonnes in 2024, surpassing 10% of total output for the first time. The figures, Plastics Europe warns, underline the urgency for decisive action from the European Commission and Member States to prevent an irreversible downturn.
"The window of opportunity to keep production and innovation in Europe is closing fast," warns Plastics Europe.
Source: agrodiario.com
