New data from Plastics the Fast Facts 2025 shows the European plastics industry losing competitiveness as global rivals expand.
European plastics production in 2024 edged up 0.4% to 54.6 million tonnes after a 7.6% contraction in 2023, yet the region’s global market share fell to 12%, down from 22% in 2006. Industry turnover declined to €398bn in 2024 from €457bn in 2022, a drop of 13%.
By contrast, global plastics production grew 4.1% last year and 16.3% since 2018, underscoring the EU’s weakening position in the world plastics market.
Asia now accounts for 57.2% of global plastics output, with China alone producing 34.5%—nearly triple the volume of the entire EU. The figures reinforce a widening competitiveness gap between Europe and faster-growing regions.
Costs, policy and trade reshape Europe’s plastics landscape
Plastics Europe, the industry association, attributes the decline to high energy prices, climate-related taxes and elevated feedstock costs that are pressuring margins and prompting asset sales and closures.
“Europe’s plastics industry stands at a pivotal moment,” said Benny Mermans, President of Plastics Europe, calling for “urgent political support and frameworks to reinvigorate investment and secure resilient and competitive supply chains.”
Trade flows are also shifting. The EU-27 negative trade balance in plastic polymers improved from -0.8 Mt in 2023 to -0.2 Mt in 2024, supported by a 10% rise in exports.
The United States remained the largest source of polymer imports into Europe with an 18.9% share, and the fourth-largest export destination for EU polymers at 7.7%. Industry groups warn that changing global tariff regimes could undermine the fragile improvement.
Circular economy momentum slows in Europe while Asia accelerates
The circular transition—a core plank of EU industrial and climate policy—showed little momentum in 2024.
Circular plastics accounted for 15.4% of EU production, a ratio shaped more by an 18.9% decline in fossil-based output since 2018 than by strong growth in recycling and bio-based materials.
Total EU circular plastics production was flat at 8.4 Mt. Mechanical recycling rose 2.7% to 7.7 Mt, chemical recycling held at 0.11 Mt, and bio-based plastics fell 25% to 0.6 Mt amid competition for subsidised biofuels feedstocks.
Global circular plastics production reached 43.9 Mt in 2024, crossing the 10% threshold of total output for the first time. China produced 13.4 Mt of circular plastics—nearly double Europe’s volume—highlighting the pace of investment and policy support in Asia’s circular economy.
Calls for an EU clean industrial deal to restore competitiveness
Plastics Europe is urging the EU and national governments to address the energy cost gap, tighten enforcement of EU rules at borders, and channel investment into circular plastics production.
The association backs stronger market-pull measures—such as ambitious recycled-content targets—to stimulate demand for recycled plastics, alongside a proposed Chemicals and Plastics Trade Observatory to monitor flows in real time and support timely trade defence where needed.
“The European plastics industry is at a cliff edge as competitiveness collapses,” said Virginia Janssens, Managing Director of Plastics Europe.
She argued that Europe must decide whether to “develop the world’s first circular plastics system or decarbonise through further deindustrialisation,” and called for rapid implementation of a Clean Industrial Deal to scale mechanical and chemical recycling and revive EU plastics manufacturing.
