Full Breakdown
European Plastics Industry Faces Manufacturing Crisis Amidst Global Competition
10/9/2025, 2:15:58 PM
Declining Competitiveness and Urgent Calls for Action
The European plastics industry is experiencing a significant crisis characterized by plant closures and a decline in global competitiveness, as highlighted by the lobbying organization Plastics Europe. Their report, "Plastics the Fast Facts," reveals a stark decrease in Europe's market share from 22% in 2006 to just 12% in 2024. Despite a slight production volume increase projected for 2024 (+0.4% to 54.6 million tonnes), the industry has suffered a record contraction of -7.6% in 2023, leading to a sharp decline in turnover from €457 billion in 2022 to €398 billion in 2024.
Benny Mermans, president of Plastics Europe, emphasized the urgency of the situation, stating that "swift, decisive action is critical to secure the future of local plastics production." The industry faces challenges such as high energy costs, climate-related taxes, and rising feedstock prices, which have contributed to ongoing asset sales and closures.
Policy Recommendations for Revitalization
Plastics Europe has called for immediate EU and national policy interventions to address these challenges. Virginia Janssens, managing director of Plastics Europe, underscored the need for political leadership to decide whether Europe aims to develop a circular plastics system or faces further deindustrialization. The organization advocates for measures to reduce energy costs, enforce EU legislation at borders, and promote investment in circular plastics production. Additionally, it suggests establishing a Chemicals and Plastics Trade Observatory to monitor trade flows and ensure a level playing field.
Global Context and Competition
The decline of the European plastics sector is set against a backdrop of growth in other regions, particularly Asia. In 2024, global plastics production rose by 4.1%, with China alone accounting for 34.5% of the world's output. In contrast, Europe's circular plastics production has stagnated, with only 15.4% of EU production classified as circular, reflecting a decline in fossil-based production rather than an increase in circular initiatives. China produced 13.4 million tonnes of circular plastics in 2024, nearly double Europe's output.
Criticism and Concerns
Critics argue that the European plastics industry's decline is exacerbated by insufficient policy support and a lack of investment in innovative recycling technologies. The absence of clear policy frameworks has stalled the transition to a circular economy, which is essential for the industry's future resilience. The European Commission's proposed regulations for end-of-life vehicles, which require at least 25% recycled plastic content, highlight the need for a comprehensive approach to recycling and sustainability.
Verbatim Quotes
- "Our region needs urgent political support and frameworks to reinvigorate investment and secure resilient and competitive supply chains." — Benny Mermans, President of Plastics Europe
- "The alarm bells should be ringing in the European Commission and EU capitals." — Virginia Janssens, Managing Director of Plastics Europe
- "Carbon black is energy intensive, and the rubber industry needs alternatives." — Ian Temperton, CEO of Plastic Energy
Conclusion: A Pivotal Moment for European Plastics
The European plastics industry stands at a critical juncture, facing a manufacturing crisis that threatens its future competitiveness. Without immediate and effective policy action, the region risks falling further behind global rivals in recycling capabilities and production efficiency. The call for a robust circular economy framework is essential not only for the plastics sector but also for the broader industrial landscape in Europe.
