Europe’s plastics circular economy is facing a severe crisis. Nearly one million tonnes of recycling capacity were projected to disappear between 2023 and 2025. Chemical recycling pioneers are closing plants, entering administration or cancelling projects. Cheap virgin plastics, Chinese overcapacity, high operating costs and technical failures are undermining profitability. Regulatory uncertainty and weak demand further threaten investments. Europe’s ambitious circular economy promises are colliding with economic reality, raising serious questions about the future of its recycling industry.
Personal Remarks
The EU thought it could regulate an entire industry into existence. Instead, it is turning into a farce—a very expensive farce.
Where did all the money go? Who is accountable for the failures? And now Brussels wants an even bigger budget?
At what point does political incompetence become something more serious?
Source
1. Plastics Recyclers Europe (PRE) – European recycling capacity losses and industry crisis (November 2025) https://www.plasticsrecyclers.eu/news/2024-data-reveals-a-deepening-crisis-of-the-european-plastics-recycling-industry/
2. S&P Global – European plastics recycling industry facing collapse https://www.spglobal.com/commodity-insights/en/news-research/latest-news/chemicals/090125-european-plastics-recycling-industry-facing-collapse-pre
3. S&P Global – Chemical recycling setbacks and plant closures in 2026 https://www.spglobal.com/energy/en/news-research/special-reports/chemicals/recycled-polymer-2026/report
4. Resource Media – Viridor proposes closing three European chemical recycling facilities https://resourcemedia.eco/article/viridor-proposes-closing-european-chemical-recycling-operations-over-weak-markets
5. Bioplastics News – Chemical Recycling Bubble Begins to Burst (July 2026) https://bioplasticsnews.com/2026/07/29/chemical-recycling-bubble-begins-to-burst/