Europe’s plastics recyclers call for course correction in EU circular economy package

Europe’s plastics recyclers are urging the European Commission to revise its recently proposed “winter package” of circular economy measures, arguing that it does not adequately address the structural challenges facing the sector. The package, part of preparations for a new Circular Economy Act (CEA), is intended to stabilize the plastics market, but industry groups such as Plastics Recyclers Europe (PRE) and FEAD say the measures are insufficient. The Commission describes the package as a response to worsening conditions, but critics warn that it does not provide enough concrete support for struggling recycling plants. The plastics sector faces multiple pressures: high energy costs, volatile and low virgin plastic prices, fragmented EU sales markets, and increasing competition from low-cost imports. FEAD warns that Europe may lose around one million tons of recycling capacity by the end of 2025, marking the sector’s worst downturn on record. The situation is further complicated by the upcoming ban on exporting plastic waste to non-OECD countries, which will reduce outlets for excess material while EU demand for recycled plastics remains limited. Impact on German manufacturers For German manufacturers, this crisis poses both supply and regulatory challenges. Reduced domestic recycling capacity could increase costs and make it harder to secure recycled plastics, potentially complicating compliance with EU sustainability and recycled-content targets. At the same time, companies may face growing pressure to support the domestic recycling market through long-term offtake agreements, adoption of recyclable product designs, and integration of recycled materials into production. Manufacturers that proactively engage in the circular economy could gain a competitive edge, ensure stable material supply while strengthening their sustainability credentials in line with EU regulations.