The European plastic recycling sector is at a crucial point. The ambitions are clear: greater circularity, reduced dependence on fossil resources, and a stronger European value chain. Recycling is increasingly seen as a strategic necessity rather than an obligation.
At the same time, a different reality is emerging in practice.
The growth of circular plastics is visibly slowing, and demand for recyclates is falling short of expectations. This is putting pressure on investments and leading to a decline in recycling capacity, while that capacity should, in fact, be increasing towards 2030.
This is today’s paradox: we know we need to recycle more, but the market is not yet moving consistently in that direction.
The core of the problem is economic. For a long time, virgin plastics were cheaper than recyclates, making the choice for new material an easy one.
For recyclers, the reality is different. Collection, sorting, and processing remain costly, especially in Europe with its high energy and labor costs. This creates an uneven playing field, where circularity is expected but not structurally rewarded.
At the same time, we are seeing an important recent development: current market dynamics, with rising costs in the value chain and increasing pressure on raw materials, are driving up prices for virgin materials.
And that is a tipping point. Because once the price gap narrows, there is room again for recyclates. Circularity then becomes not only a moral or regulatory choice, but once again an economically logical one.
Europe is taking important steps with EPR, SUP and the upcoming PPWR. These instruments are essential, but their effectiveness depends on consistent implementation and clear frameworks.
As long as price incentives remain insufficient and uncertainty persists in the value chain, circularity will remain vulnerable.
The current situation does not call for hesitation, but for acceleration.
The foundation is already there:
• strong societal and political support,
• technological progress in recycling,
• and a market that will continue to grow in the long term.
The next steps are clear:
• create a level playing field between virgin materials and recyclates,
• structurally stimulate demand for recycled materials,
• and truly value CO₂ and resource savings across the value chain.
The plastic recycling sector is under pressure, but the direction is clear. The transition to a circular economy is irreversible.
The question is not whether this change will happen, but how quickly we will succeed in adapting the economy to it.
At Van Werven Plastic Recycling, we believe this phase is decisive. As a sector, we must now move from ambition to reality.
Because only then can we truly turn plastic waste into the raw material of the future.