Europe: Recycled plastics under pressure as virgin polymer prices decline
2025.12.23 - 19:51
According to recent industry analysis, declining demand and production adjustments in 2025 have led to lower virgin polymer prices in Europe, increasing pressure on recycled plastics markets—particularly rPP and rPE segments that compete directly with virgin materials.
At the end of 2025, the European plastics market is going through a rebalancing phase. Industry data indicate a decline in virgin polymer prices, driven by weaker industrial demand and capacity adjustments by major producers. This development directly impacts recycled plastics, especially mid-quality rPP and rPE, where the price gap versus virgin material has narrowed significantly. In contrast, high-quality recycled plastics, with stable specifications and traceability, continue to attract interest from converters—particularly in regulated or brand-driven applications. Current market conditions act as a natural filter, favoring recyclers that have invested in advanced technology, quality control, and industrial integration. Outlook for 2026 will largely depend on the recovery of industrial demand and the effective implementation of EU recycled-content obligations.