Europe’s plastics producers warn of a deepening competitiveness crisis, as energy prices, regulatory complexity, and investment flight threaten the sector’s survival.

According to a new PlasticsEurope report (October 2025), the EU plastics industry is facing an unprecedented decline in capacity and investment. Between 2018 and 2025, production capacity in Europe dropped by more than 20%, while both Asia and the United States continued to expand.
Rising energy costs, complex regulation, and fragmented market incentives have led to plant closures and relocation of production outside the EU.

PlasticsEurope calls on the European Commission to launch a European Industrial Recovery Plan, focusing on:

secure and affordable energy access;

simplified permitting and regulatory alignment;

clear long-term investment frameworks for circular materials;

consistent recycling and sustainability goals.

Without immediate measures, Europe risks losing its technological edge and thousands of skilled industrial jobs.
The association stresses that a competitive and circular plastics industry must be treated as a strategic pillar for Europe’s green transition.