Europe’s transition towards a circular plastics ecosystem has entered a clear phase of slowdown. This is one of the key findings of Plastics Europe’s biennial report, “The Circular Economy for Plastics: A European analysis”, which analyses the latest 2024 data on plastics production, consumption, conversion, international trade and waste management in Europe.
The report warns that the loss of industrial competitiveness is holding back progress towards circularity at a crucial moment for Europe’s climate goals and strategic autonomy. In 2024, 15.8% of total plastics production in Europe was circular, equivalent to 8.7 million tonnes. However, annual growth in circular production has slowed sharply, from 13.6% between 2018 and 2022 to just 1.2% between 2022 and 2024.
Demand for circular plastics also loses momentum
The slowdown is not limited to production. European demand for circular plastics from converters has also weakened, falling from annual growth of 16.2% between 2018 and 2022 to 4% between 2022 and 2024.
This shift comes as global circular plastics production accelerates, growing from 5% to 7.7%, highlighting Europe’s relative loss of momentum compared with other regions.
Plastics Europe attributes this situation to a combination of high energy costs, expensive raw materials, emissions-related costs and the lack of a level playing field in international trade. According to Rob Ingram, president of Plastics Europe and CEO of Ineos Olefins & Polymers Europe, European plastics producers are operating “in survival mode”, limiting their ability to invest in circularity.
More recycling, but too much waste still goes to landfill or incineration
The report identifies some progress in waste management. The recycling rate for collected plastic waste in Europe increased to 29.6% in 2024. However, this positive figure contrasts with a structural reality: 70.4% of collected plastic waste is still sent to incineration or landfill.
Specifically, 16 million tonnes ended up being incinerated, representing 48.9% of the total, while 7 million tonnes went to landfill, equivalent to 21.5%. For the sector, this means Europe is losing a strategic circular raw material that could reduce dependence on fossil resources and strengthen the continent’s industrial autonomy.
External dependence adds further risk
The report also underlines Europe’s high dependence on external value chains. In 2024, 19% of converters’ demand for circular plastics was met through imports. In addition, 12.4% of plastic waste collected in Europe is recycled in other regions of the world.
This external dependence is even higher for fossil-based plastics, where 25% of demand from European converters comes from non-EU imports.
For Virginia Janssens, managing director of Plastics Europe, this dynamic weakens both Europe’s industrial base and its climate ambitions. The organisation argues that Europe must make it economically attractive to retain, recycle and use its own plastic waste within the continent.
Spain leads in recycling, but the use of circular plastics stalls
Spain’s situation also reflects a slowdown in the circular transition. According to the report, growth in circular plastics production in Spain has eased, from annual growth of 12.8% between 2018 and 2022 to 7.2% between 2022 and 2024.
The slowdown is even more pronounced in the use of circular plastics, which went from 35% annual growth between 2018 and 2022 to no growth between 2022 and 2024. According to the sector, this situation is being aggravated by an increase in imports with declared recycled content that cannot be verified in the final product.
This stagnation is also reflected in the recycled content rate in new products, which fell from 22.3% in 2022 to 21.4% in 2024. Even so, Spain remains clearly above the European average of 15.8%.
Landfill remains Spain’s major unresolved challenge
Spain stands out as a European leader in plastic waste recycling, with a rate of 42.5%, ahead of countries such as Belgium, the Netherlands and Germany, and well above the European average of 29.6%.
However, the report points to a persistent weakness: landfill. More than 35% of plastic waste still ends up in landfill in Spain, a rate far above the European average of 21.5%, despite the landfill tax that came into force on 1 January 2023.
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For Plastics Europe, this limits real progress towards circularity and highlights the need for a framework that promotes the maximum use of plastic waste as a strategic local resource.
Competitiveness and regulation, key to unlocking investment
The report concludes that, without industrial competitiveness, circularity will not take off in Europe. Although the European Commission has recognised the strategic importance of plastics production in the Industrial Acceleration Act, Plastics Europe believes that the current EU regulatory frameworks still lack the market signals, scale and speed needed to reverse the trend.
The organisation calls for action at both European and national level to restore industrial competitiveness, address energy and emissions costs, ensure fair trade and stimulate strong demand for circular plastics.
According to Janssens, circularity should not be understood only as an environmental objective, but also as an industrial one. For the sector, Europe has innovative companies and technological capacity, but it needs a framework that turns the circular economy into a real and attractive business opportunity within the continent.
