The sharp increase in oil prices during the first quarter of 2026, driven by geopolitical tensions in the Middle East, temporarily altered the economics of the plastics market. As virgin plastics suddenly became more expensive, Europe’s plastics recycling industry experienced short-term relief from years of struggling with weak demand for recycled plastics and unfair competition from low-cost virgin polymers. Yet, this temporary improvement cannot be mistaken for recovery. The structural problems facing Europe’s plastics recycling industry remain fully unresolved. The competitiveness of recycled plastics market continues to be structurally tied to fossil fuel prices, making the sector extremely vulnerable to future market shocks. The recycling industry cannot rely on geopolitical crises and oil price spikes to remain viable. To address this, structural action is needed both at EU and national level.

Recent figures^[1] reveal a dramatic slowdown in Europe’s transition towards a circular plastics system. This is especially important as exports of plastic waste to non-OECD countries will be banned from 21 November 2026^[2]. Without strong commitment for Made in Europe recycled plastics and sufficient investment across the entire European circular plastics value chain, including collection, sorting and recycling infrastructure, the EU risks a sharp increase in landfilling and incineration once export outlets close. The costs of plastic waste management will also dramatically increase for local authorities, waste owners and EPR. Strengthening demand for European recycled plastics must become an immediate political priority. EU and national policymakers must urgently establish the structural conditions needed to ensure a strong and resilient European plastics recycling industry.

While the European Commission has recognised the need to facilitate recycling and increase the uptake of recycled materials, existing measures remain insufficient. Without decisive intervention, Europe risks further losing recycling capacity before upcoming recycled content obligations can deliver their intended impact[3]. In response, Recycling Europe Plastics sets out a series of priority measures to strengthen markets for recycled plastics and support a resilient European plastics recycling industry.

[1] Growth in mechanically recycled post-consumer plastics production has collapsed from +40% between 2020 and 2022 to just +3.9% between 2022 and 2024.

[2] An increasing share of Europe’s plastic waste is already being recycled outside Europe, reaching 12.4% in 2024. (PlasticsEurope (May 2026), Report: “The Circular Economy for Plastics, A European Analysis”)

[3] https://www.plasticsrecyclers.eu/news/2024-data-reveals-a-deepening-crisis-of-the-european-plastics-r