Europe Plastic Recycling Market Size (2024-2030)

The Europe Plastic Recycling Market was valued at USD 10.77 Billion in 2022 and is projected to reach a market size of USD 15.15 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 5%.

The European plastic recycling market has been experiencing significant growth and transformation in recent years, driven by increasing environmental awareness and regulatory initiatives. Europe has emerged as a global leader in plastic recycling, with a well-established infrastructure for the collection, sorting, and processing of plastic waste. The Circular Economy Package and ambitious targets set by the European Union for recycling rates have propelled investments in recycling technologies and the development of a more sustainable plastics industry. Additionally, consumer demand for products made from recycled plastics has stimulated innovation and market expansion, leading to a dynamic and evolving landscape for recycled plastic products across various sectors, including packaging, automotive, construction, and consumer goods. This robust market continues to play a crucial role in mitigating plastic pollution and advancing the transition towards a circular economy in Europe.

Key Market Insights:

In 2021, the plastic recycling capacity in the EU27+3 region witnessed a notable 17% increase, driven by a substantial investment of approximately €1.75 billion. With a presence of over 730 recycling facilities, the collective plastic recycling capacity across the EU27+3 has reached an impressive 11.3 million tonnes.

Notably, Germany, Spain, Italy, the United Kingdom, and France emerged as the leading countries in terms of installed capacities, jointly accounting for two-thirds of the overall market.

The European plastics industry ranks 8th in Europe in industrial value-added contribution.

According to the European Association of Plastic Manufacturers, plastic waste recycling has increased by almost 80% in the last 10 years in Europe.

In 2020, the EU27+3 region saw the collection of over 29 million tonnes of post-consumer plastic waste. However, it's important to note that the lifespan of plastic products varies significantly, ranging from just a year to over 50 years, which means that the figures for waste collection may not align precisely with the demand or consumption figures. More than one-third of this collected waste was directed to recycling facilities, both within and outside the EU27+3, while over 23% ended up in landfills, and more than 40% was subjected to other disposal methods.

Europe Plastic Recycling Market Drivers:

Environmental Concerns and Regulations are long-term drivers for Europe's Plastic Recycling market.

Growing environmental concerns, particularly regarding plastic pollution and its impact on ecosystems, oceans, and wildlife, have been a major driver for the plastic recycling market. Governments and regulatory bodies around the world have implemented stricter regulations to curb plastic waste and promote recycling. In the EU, for example, the Circular Economy Action Plan aims to increase plastic recycling rates and reduce single-use plastics. In 2021, the European Union set a target to recycle at least 50% of plastic packaging waste by 2025, and 55% by 2030, underpinning the significance of regulatory drivers. Similar initiatives and regulations have been adopted or proposed in many other regions globally.

Consumer Demand for Sustainable Products is accelerating the growth of Europe's Plastic Recycling market.

Increasing consumer awareness and demand for sustainable and eco-friendly products have had a substantial impact on the plastic recycling market. Consumers are actively seeking products made from recycled plastics, and companies are responding by incorporating recycled materials into their packaging and products to meet this demand. A Nielsen survey in 2019 found that 73% of global consumers would definitely or probably change their consumption habits to reduce their impact on the environment. As a result, companies are increasingly using recycled plastics to meet this consumer demand. For example, major brands like Coca-Cola, Unilever, and Nestlé have made commitments to use more recycled plastic in their packaging.

Europe Plastic Recycling Market Restraints and Challenges:

Challenges in Collection and Sorting are a major problem in this market.

The collection and sorting of plastic waste can be a complex and costly process. Insufficient infrastructure and inefficient collection systems can hinder the availability of high-quality recyclable materials. Sorting plastic waste into different categories is also challenging, as there are numerous types of plastics with varying properties. According to a study published by the Ellen MacArthur Foundation, only 14% of plastic packaging is collected for recycling globally. The remaining 86% either ends up in landfills or is leaked into the environment. These statistics highlight the challenges in collecting and sorting plastic waste effectively.

Low profit margins and High Processing Costs could limit the growth of Europe's Plastic Recycling market.

The economics of plastic recycling can be challenging. Processing plastic waste into recycled materials can be expensive due to the need for specialized equipment and technologies. Additionally, the market for recycled plastics often faces competition from cheaper virgin plastics, which can result in lower profit margins for recycling companies. According to Plastics Europe, the price of virgin plastics was generally lower than that of recycled plastics, making it economically challenging for businesses to prioritize recycled materials. This pricing disparity can discourage investment in recycling infrastructure and technology.

Europe Plastic Recycling Market Opportunities:

Opportunities in the European plastic recycling market abound due to the region's growing commitment to sustainability and circular economy principles. Increased demand for recycled plastic products, driven by environmentally conscious consumers and regulations promoting recycling, creates a robust market for companies to capitalize on. Innovations in recycling technologies, such as advanced sorting and purification methods, offer cost-effective solutions for improving the quality and availability of recycled plastics. Collaborations between industries, government initiatives, and investments in recycling infrastructure further enhance the prospects for market growth, positioning Europe as a global leader in plastic recycling and fostering a more sustainable and eco-friendly plastics industry.

EUROPE PLASTIC RECYCLING MARKET REPORT COVERAGE:

Europe Plastic Recycling Market Segmentation:

Europe Plastic Recycling Market Segmentation: By Source

• Post-Consumer Plastic Waste
• Post-Industrial Plastic Waste

Post The consumer plastic waste category includes plastic waste that has been used by consumers and is discarded after its intended use. This is the largest segment by source and covers 51% of market share. This is because post-consumer plastic waste is a notable portion of the overall plastic waste stream in Europe. It encompasses items like plastic packaging, bottles, containers, and products that individuals or households dispose of. Post-consumer plastic waste is typically collected through municipal recycling programs, deposit return systems, or voluntary recycling initiatives. In 2021, the collection of post-consumer plastic waste was a significant focus in Europe, with countries like Germany, the Netherlands, and Sweden boasting high recycling rates for plastic packaging waste.

Post-consumer plastic waste is the fastest-growing segment as well, estimated to expand at a rate of 16%. Several factors like increasing consumer awareness and regulations aimed at reducing single-use plastic waste, circular economy initiatives, and corporate sustainability commitments are increasing the amount of post-consumer plastic waste.

Post-Industrial plastic waste segment comprises plastic waste generated within industrial processes or manufacturing facilities. It includes production scrap, defective products, or excess materials that can be recycled. Post-industrial plastic waste is often of high quality and purity because it has not been exposed to the same level of contamination as post-consumer waste. Companies in sectors like automotive manufacturing, electronics, and packaging often generate significant quantities of post-industrial plastic waste.

Europe Plastic Recycling Market Segmentation: By Type of Plastic Material

• PET
• HDPE
• LDPE
• PP
• PS
• Others

The largest segment is PP (Polypropylene), which is widely used in many applications, like packaging materials, automotive components, textiles, and consumer goods, making it the most recycled plastic. PP holds approximately 20% of the market share with a plethora of uses in food packaging, sweet and snack wrappers, hinged caps, microwave containers, pipes, and banknotes as well. With increasing population and urbanization, consumer and industrial goods are rising consistently, making PP the largest segment in this market.

PET recycling is the fastest-growing segment in Europe's Plastic Recycling market, growing at a CAGR of approximately 12%. PET recycling has been experiencing significant growth due to increasing environmental issues, better recycling infrastructure, and initiatives aimed at promoting PET recycling. Growing consumer awareness and volunteering in recycling programs like bottle return schemes and recycling bins have contributed to the fast growth of PET recycling. Several other factors like sustainable packaging trends initiated by many beverage companies and the circular economy are playing a major role in expanding the growth of PET recycling in the projected period.

Europe Plastic Recycling Market Segmentation: Regional Analysis:

• U.K.                 
• Germany
• France
• Italy
• Spain
• Rest of Europe

Germany held the largest market share, accounting for over 20% of market revenue in the Europe Plastic Recycling market. Germany has a strong emphasis on the mechanical recycling of plastics. PP recycling is significant in Germany due to the automotive industry’s use of plastic components. This region is a leader in circular economy and sustainable packaging initiatives and has a well-developed collection and sorting infrastructure, making it the largest market.

Italy is the fastest-growing region and is anticipated to grow at 14% CAGR during the forecast period. Italy has been actively working on improving its plastic recycling and sustainability efforts, making it the fastest-growing region in this market. Italy has shown significant growth in the recycling of plastic films and packaging materials and has invested in modern recycling facilities and infrastructure to support the collection, sorting, and processing of plastic waste. Government initiatives, sustainable packaging, focus on textile recycling, and increasing public awareness is contributing to the fast growth of Italy's plastic recycling market.

COVID-19 Impact Analysis on the Europe Plastic Recycling Market:

The COVID-19 pandemic had a multifaceted impact on the European plastic recycling market. While the initial disruption in supply chains and decreased industrial activity temporarily affected the collection and processing of plastic waste, the crisis also heightened awareness about the importance of sustainable practices, driving increased interest in recycled plastics. According to Plastics Recyclers Europe, the recycling industry reported a reduction in collection volumes during the pandemic's early stages but saw a rebound in the latter half of 2020. The crisis underscored the need for resilient recycling infrastructure, creating an impetus for investments and innovation in the sector, as Europe continued its commitment to a circular economy and sustainable plastic management.

Latest Trends/ Developments:

Companies are increasingly embracing a strategy of vertical integration within the plastic recycling sector, spanning various stages of the recycling value chain, from collection and sorting to processing and the production of recycled plastic goods. This holistic approach empowers them with enhanced supply chain control, operational efficiency gains, and a more dependable source of recyclable materials. Moreover, their expansion into a wider array of recycled plastic products, including high-value applications like automotive components or food-grade packaging, not only bolsters their market presence but also diversifies revenue streams, ensuring a more resilient market position.

To elevate the quality and quantity of recycled materials, companies are channeling investments into cutting-edge recycling technologies. These innovations encompass novel sorting techniques, chemical recycling processes, and AI-driven systems that optimize efficiency while mitigating contamination risks. By staying at the forefront of technological advancements, companies can produce top-tier recycled plastics that align with the stringent requirements of both end-users and regulatory bodies, thus establishing a competitive advantage. Simultaneously, strategic partnerships and collaborations are gaining prominence as businesses forge meaningful alliances with stakeholders throughout the value chain. These partnerships often extend to waste management firms, governmental bodies, research institutions, or consumer brands. By pooling resources, sharing expertise, and harnessing collective knowledge, these collaborative efforts drive sustainability initiatives, secure a stable supply of plastic feedstock, and enable the fulfillment of regulatory mandates. Ultimately, such partnerships position these companies as preferred sustainability partners within the plastic recycling market.

Key Players:

1. Veolia
2. SUEZ
3. Borealis AG
4. ReVital Polymers
5. TOMRA
6. PlasticsEurope
7. Recycling Technologies
8. EcoPlastics
9. ALPLA Group
10. Eni Versalis

• In January 2022, Borealis partnered with Reclay to tackle the challenge of plastic packaging waste and its recycling, in which plastic waste from Reclay will be converted and revalorized by Borealis in high-quality recycled materials.
• In January 2021, Borealis AG and TOMRA opened a state-of-the-art plant in Germany for post-consumer plastic waste sorting and advanced mechanical recycling.