According to Plastics Europe’s latest press release, European plastics manufacturers are facing an unprecedented decline in global competitiveness, with new data revealing a shrinking market share, falling turnover and a stalled transition toward circular production.
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EU Plastics Market Share Freefalling Despite Brief Stabilization
After a record contraction in 2023 (-7.6%), Europe’s plastics production showed a modest recovery in 2024, rising 0.4 % to 54.6 million tonnes. However, this rebound has done little to slow the region’s long-term decline.
Europe’s global market share in plastics manufacturing has plummeted from 22 % in 2006 to just 12 % in 2024. Industry turnover followed the same downward trajectory, dropping from €457 billion in 2022 to €398 billion in 2024, a 13 % decline.
This downturn contrasts sharply with global trends, where worldwide plastics production grew 4.1 % last year and has surged more than 16 % since 2018. Asia continues to dominate the market, accounting for 57.2 % of global plastics output, with China alone producing 34.5 %, nearly triple the entire EU’s output.
Energy Costs and Policy Pressures Undermine Plastics Market Competitiveness
Plastics Europe’s President, Benny Mermans, described the current situation as a “pivotal moment” for the sector, warning that European manufacturers are being outpaced by competitors overseas. “While innovation and investments accelerate on other continents, Europe faces softened turnover and slowed production,” Mermans mentioned.
High energy costs, stringent climate-related taxes and expensive feedstocks have combined to erode the industry’s competitiveness, causing asset sales and plant closures across the continent.
EU27 Trade Balance Improves Slightly but Global Risks Remain
The EU27’s negative trade balance in plastic polymers improved marginally in 2024 (from -0.8 million tonnes in 2023 to -0.2 million tonnes) thanks to a 10 % rise in exports. However, shifting global tariffs remain a serious concern. The United States is now Europe’s largest source of polymer imports (18.9 % of the market) and the EU’s fourth-largest export destination (7.7 %).
Circular Transition Stalls as Asian Plastics Market Pulls Ahead
Europe’s long-standing leadership in circular plastics is slipping. While circular plastics made up 15.4 % of EU production in 2024, the figure mainly reflects a drop in fossil-based output rather than a meaningful rise in circular capacity. Overall, EU circular plastics production remained flat at 8.4 million tonnes. Mechanical recycling edged up 2.7 % to 7.7 million tonnes, chemical recycling stagnated at 0.11 million tonnes and bio-based plastics fell 25 % to 0.6 million tonnes, constrained by biofuel feedstock competition.
In contrast, global circular plastics production reached 43.9 million tonnes in 2024, surpassing 10 % of total plastics output for the first time. China led the way with 13.4 million tonnes, nearly doubling Europe’s volume.
Call for Urgent Policy Support
Plastics Europe is calling for a comprehensive policy response that includes measures to:
- Address Europe’s energy cost crisis.
- Strengthen enforcement of trade rules at EU borders.
- Stimulate investment in circular plastics production.
- Create stronger market demand for recycled content through ambitious targets and incentives.
- Establish a Chemicals and Plastics Trade Observatory to monitor global trade flows and ensure fair competition.
Conclusion
As global competitors race ahead, Europe’s plastics industry stands at a decisive crossroads. Without urgent and coordinated action from policymakers, the continent risks losing not only its industrial base but also its ability to lead the global shift toward circular and low-carbon materials. Safeguarding Europe’s plastics production today is essential to securing the innovation, investment and circular economy progress needed for tomorrow.
