Europe's plastics recyclers under margin pressure: about 1 million tonnes of capacity lost in three years

The Bureau of International Recycling's (BIR) October 2026 plastics report paints a difficult picture for Europe's recyclers. The expected post-summer recovery has not turned into a broad rebound; demand is weak, buyers are cautious, and recyclers struggle to pass on higher costs.

• Prices: Virgin PP has firmed, and PE faces upward cost pressure. Recycled PE and PP prices, however, are flat to slightly lower depending on grade. Natural and transparent LDPE/HDPE are doing better than mixed-colour industrial grades.
• Capacity: According to Plastics Recyclers Europe, about 1 million tonnes of recycling capacity was lost in Europe over roughly three years, and preliminary 2025 data show closures accelerating. Causes: high operating costs and weak competitiveness against virgin plastics and cheap imports.
• Freight: By late September, Far East–North Europe spot rates were down about 29% from 1 July and Far East–Mediterranean about 38%, making Asian recycled and virgin polymers cheaper to land in Europe.
• Regulation: The EU Packaging and Packaging Waste Regulation (PPWR) began applying on 12 August 2026, but mandatory recycled-content rules for plastic packaging generally apply from 1 January 2030 (or three years after the relevant implementing act). Recycled plastic processed outside the EU generally cannot count toward the 25% target for PET bottles until 21 November 2027; this is not an import ban.

What does this mean for a molder?

There are two messages for Turkish molders supplying Europe: buyers of recycled material now differentiate by quality, consistency, traceability and certification; and counting recycled plastic processed outside the EU toward EU targets is subject to specific rules. If you offer rPP/rPE to an EU customer, ask for the material's certificates and origin documents in advance. On Türkiye–EU waste trade, see our story on the European Commission decision.