Plastics Europe’s latest data on the health of the European plastics system highlights a steeper-than-expected downturn in the production of plastics and, for the first time, in mechanically recycled plastics production in 2023 in Europe.
Compared to 2022, total EU plastics production saw a sharp decline of 8.3%, falling to 54 Mt, while production of mechanically recycled post-consumer plastics also dropped by 7.8%, reaching 7.1 Mt. These figures contrast with a 3.4% global increase in plastics production and mean that Europe’s share of the global market has further declined to 12%[1]. Whilst Europe has maintained a positive trade balance in value terms, in tonnage terms it became a net importer of plastics resins in 2022 and plastic finished goods in 2021, and exports of plastics resins fell by 25.4% between 2020 and 2023.
Europe’s eroding competitiveness threatens our industry’s circular plastics transition. Plastics are essential for the European economy, supplying multiple industries with applications in almost every sector, including healthcare, automotive, building and construction, electronics, renewables infrastructure, consumer goods and packaging. This shift threatens the viability of the European plastics value chain which currently supports over 1.5 million jobs across 51,700 companies and generated more than €365 billion in turnover within the EU in 2023. Without a competitive framework, Europe risks losing its leadership in sustainable plastics innovation, along with the economic and environmental benefits it brings.
Marco ten Bruggencate, President of Plastics Europe, and President Dow EMEAI said: “The EU’s transformation to a circular plastics system is in acute danger from imported plastics which do not always meet EU standards. The hard truth is that we already see EU manufacturing plants being shut down, leading to offshoring of the industry, jobs and sustainable investments. The circularity transition will only be successful if policymakers urgently implement the framework conditions needed to regain our competitiveness and provide an attractive long-term perspective for circularity investments. The window of opportunity is narrow and the time for bold action is now.”
Virginia Janssens, Managing Director of Plastics Europe states: “To avoid a worrying slowdown in Europe’s transition we need urgent measures to make investments in circular plastic production more attractive, reduce red tape for instance due to excessively long permitting procedures and create a level playing field with our international competitors. Despite the challenges, we remain fully committed to progress towards the circularity and net zero ambitions of our ‘Plastics Transition’ roadmap. We now need EU and Member State policymakers to send an immediate and unambiguous message to investors and the market that they also remain committed to plastics manufacturing in Europe and our transition journey”.
