Despite a modest stabilisation in production volumes in 2024 (+0.4% to 54.6 Mt) after a record contraction in 2023 (-7.6%), Europe’s global market share has continued to erode — collapsing from 22% in 2006 to just 12% in 2024. Industry revenues have also fallen sharply, from €457 bn in 2022 to €398 bn in 2024 (-13%).
Europe’s decline contrasts starkly with the industrial boom taking place in other regions. Global plastics production increased 4.1% last year and by 16.3% since 2018. Asia now produces 57.2% of the world’s plastics, with China alone accounting for 34.5% (nearly three times more than the entire EU).
Europe’s plastics manufacturers face crippling energy costs, climate-related taxes and high feedstock prices, which are eroding the industry’s competitiveness and accelerating ongoing asset sales and closures.
The EU27 negative trade balance in plastic polymers has improved marginally from -0.8 Mt in 2023 to -0.2 Mt in 2024, supported by a 10% increase in exports. However, changing global tariff regimes continue to pose a very significant threat. The United States is the largest source of polymer imports into Europe, accounting for 18.9% of the market, and the fourth largest export market for EU polymers, accounting for 7.7% of the market.
Plastics Europe calls for urgent EU and national policy action. These must address Europe’s energy cost crisis, strengthen the enforcement of EU legislation at its borders, and promote investment in circular plastics production in Europe. We must foster strong market demand for circular plastics through ambitious recycled-content targets and other incentives. Additionally, establishing a Chemicals and Plastics Trade Observatory to monitor trade flows in real time will help ensure a level playing field, enabling EU industry and officials to respond promptly with trade defence measures when necessary.
Europe’s past leadership in circular plastics is now being eclipsed by China and the rest of Asia. While circular plastics accounted for 15.4% of EU production in 2024, this figure reflects a sharp 18.9% decline in fossil-based production since 2018, rather than a significant expansion in circular production.
In 2024, total EU circular plastics production remained flat at 8.4 Mt. Mechanical recycling increased by just +2.7% to 7.7 Mt, while chemical recycling remained static at 0.11 Mt, and bio-based plastics declined by 25% to 0.6 Mt (due to the constraint of subsidised feedstock competition from biofuels). By contrast, global circular plastics production surged to 43.9 Mt in 2024, breaching the 10% threshold of total global output for the first time. China alone produced 13.4 Mt of circular plastics in 2024, nearly double Europe’s volume.
