The once-promising expansion of rigid polyolefin recycling in Europe has reached an impasse, according to a recent joint analysis by Plastics Recyclers Europe (PRE) and ICIS. After years of steady growth, recycling capacities for high-density polyethylene (HDPE) and polypropylene (PP) plateaued in 2023, revealing a significant slowdown in progress within the European recycling sector.
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Recycling Capacity Reaches a Ceiling
By 2023, the EU27+3 region had installed recycling capacities of 1.7 million tonnes for HDPE and 1.8 million tonnes for PP. Despite the presence of approximately 300 facilities capable of processing these materials, there was no noticeable increase in capacity compared to the previous year. This stagnation is largely attributed to reduced market demand, caused in part by a surplus of polyolefins on the global market. In addition, rising inflation, high energy costs, and increased availability of low-cost imported polymers—both virgin and recycled—have made it more difficult for European recyclers to remain competitive.
Systemic Barriers to Progress
The report underscores several systemic issues that continue to hinder the development of the recycling industry. First among them is limited waste collection, poorly regulated imports, and a lack of consistent enforcement measures. While most countries in the EU have set up systems for the separate collection of rigid polyolefin waste, there has been no meaningful improvement in collection rates between 2018 and 2023. Furthermore, only 42 % of the collected materials were sorted in a way that made them suitable for recycling.
The gap between what is collected and what actually enters recycling processes is due to a range of complications. These include product designs that are not aligned with recycling requirements, exports that divert materials from local recycling streams, and insufficient sorting capabilities that limit the quality and quantity of recyclables.
Future Targets at Risk
Looking ahead, the European Union’s Packaging and Packaging Waste Regulation (PPWR) outlines ambitious targets for recycled content in packaging. Meeting these goals will demand a significant scale-up—requiring at least 2 million more tonnes in recycling capacity for HDPE and PP by 2030, and an additional 5.7 million tonnes by 2040. However, given the current stagnation and the estimated recycling capacity outlook for 2024, there is growing concern that these benchmarks are unattainable without major policy shifts.
A Call for Structural Reform
To reinvigorate the sector, industry leaders are calling for comprehensive reforms. These include stricter regulation and oversight of imported plastics to ensure fair competition, as well as the broader adoption of design standards that facilitate recycling. In addition, there is a need to significantly enhance waste collection systems and invest in more advanced sorting technologies.
According to PRE, these actions are essential not only for boosting investment in the recycling industry but also for preserving Europe’s manufacturing base and achieving its broader sustainability objectives.
Conclusion
The stagnation of rigid polyolefins recycling in Europe serves as a stark warning that progress toward circular economy goals is far from guaranteed. Without targeted intervention and stronger regulatory frameworks, the industry risks falling short of its future targets. A coordinated response that strengthens infrastructure, enforces regulations, and encourages innovation is crucial to reversing the current trend and ensuring a more sustainable path forward.
