By the end of 2025, the territory is expected to have lost recycling facilities, amounting to almost one million tonnes of recycling capacity since 2023. Between January and July 2025, alone, almost the same amount of capacity as in the whole of 2024 was lost, and three times more than in 2023. Forecasts for 2025 indicate zero net growth after years of rapid expansion, which signals a critical decline in momentum in the transition to a circular economy. The Netherlands, Germany and the United Kingdom have been the most affected by this downward trend.
These figures are proof of the damaging effects of the recession on the European plastics recycling sector. To revive demand for EU recyclates and prevent further closures, policymakers must urgently implement trade and market defence mechanisms, ensure consistent EPR rules, and strictly enforce third-party certification and harmonised penalties for non-compliant materials.
