Europe Recycled Plastics Market

Europe Recycled Plastics Market Size and Share:

The Europe recycled plastics market size was valued at 13.3 Million Tons in 2024. Looking forward, IMARC Group estimates the market to reach 19.6 Million Tons by 2033, exhibiting a CAGR of 4.42% during 2025-2033. Germany dominated the market in 2024. The growing corporate sustainability efforts, the fast evolving recycling technologies, the growing environmental consciousness among consumers, the allied efforts of governments, corporations, and NGOs, and the mounting adoption of extended producer responsibility (EPR) programs are some of the drivers of Europe recycled plastics market share.

The growing emphasis on sustainable packaging and stricter environmental regulations is contributing to the increasing demand for recycled plastics in Europe. Governments are implementing policies to reduce plastic consumption and promote recycling, which supports the adoption of recycled materials in various industries. Increased consumer awareness about plastic waste and environmental impact has led to a shift toward sustainable solutions. Additionally, government incentives for recycling and the development of efficient recycling technologies further augment the market. The rise of the circular economy model, which emphasizes reusing materials and reducing waste, is also playing a crucial role. These factors are collectively driving the Europe recycled plastics market growth, particularly in sectors such as packaging, automotive, and construction, where sustainable material usage is becoming a key priority.

A rising shift toward chemical recycling in Europe is marked by new joint ventures aimed at increasing plastic waste feedstock availability. These collaborations are set to enhance advanced recycling capacities, with ambitious targets to process large volumes by 2025, driving circular resource management and improving sustainability in plastics. For instance, in March 2025, Agilyx and Carlos Monreal launched Plastyx, a joint venture to supply plastic waste feedstock for Europe’s chemical recycling sector. Targeting 200,000 tons by the end of 2025, Plastyx aims to support advanced recycling applications by combining Cyclyx’s expertise with Monreal’s experience in circular resource management.

Europe Recycled Plastics Market Trends:

Increasing Government Incentives and Subsidies for Businesses

The growing government subsidies and incentives to companies are acting as catalysts for the market. Governments across the continent are coming to realize the central place recycling plays in addressing plastic pollution and promoting sustainable lifestyles. Europe recycled plastics market forecast suggests that these financial incentives will encourage businesses to invest in recycling technologies, infrastructure, and the integration of recycled plastics into their products. Through providing subsidies and financial rewards, the authorities serve as a catalyst, balancing out some of the expenses of going green and making eco-friendly methods cost-effective for companies. Furthermore, governmental support demonstrates dedication to wider environmental agendas, consistent with worldwide efforts aimed at fighting climate change and minimizing carbon footprint. In addition, such government assistance is consistent with overall environmental objectives, including the European Environment Agency's ambitious 2030 climate goal of reducing greenhouse gas emissions by 55% below 1990 levels and a long-term goal of climate neutrality by 2050. The financial support incentives allow companies to innovate and optimize their recycling processes, maximizing efficiency and scalability. This reduces the overall cost of production of goods using recycled plastics, thus increasing competitiveness in the market. Secondly, government subsidies establish a level playing field, which promotes healthy competition among firms to use sustainable methods. With more firms using recycled plastics as a result of such inducements, the augmented demand results in a self-sustaining market growth cycle.

Rising Awareness about Energy Savings

Based on the Europe recycled plastics market outlook, the increasing concern for energy savings is driving the market. With growing environmental awareness as a part of the overall value system, companies and customers alike are aware of the substantial energy savings offered by utilizing recycled plastics. When compared to the energy it takes to make virgin plastic, recycling post-consumer or post-industrial plastic uses much less energy. This awareness is driving businesses towards the use of recycled plastics as a sustainable option, as part of larger energy efficiency objectives. Underpinning this movement, industry players such as Plastics Europe are investing heavily in chemical recycling and supporting technological innovations. The company has pledged to increase its investment to allow the manufacture of 1.2 Million Tons of recycled plastics by 2025, aiming to reach 3.4 Million Tons by 2030. Further, the fact that recycling plastics reduces the necessity for exploiting and refining raw materials further attests to the energy-saving potential. The life cycle analysis of recycled plastics is always lower on energy usage and greenhouse gas emissions than their virgin counterparts. Companies, seeking to improve their environmental profile as well as benefit from cost savings, are accordingly placing more of these plastics into their manufacturing processes. This spreading awareness cascades into consumer decision-making. Informed customers are actively searching for products from these plastics, generating a market demand that, in return, prompts industries to make investments in recycling technology and infrastructure. With energy saving taking center stage in sustainability talks, the market is ready to achieve long-term growth as everyone sees its central role in saving resources and lowering the impact on the environment.

Europe Recycled Plastics Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Europe recycled plastics market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on source, application, and plastic type.

Analysis by Source:

• Plastic Bottles
• Plastic Films
• Rigid Plastics and Foams
• Fibres
• Others

Plastic bottles stood as the largest source in 2024. Plastic bottles make up a large percentage of post-consumer plastic litter, and policies aimed at recycling them fall in line with international efforts to stem plastic pollution. With the increasing awareness of the environmental consequences of single-use plastics, there has been a sharp increase in the number of recycling initiatives and policies focusing on recycling plastic bottles.

Used plastic bottles have widespread usage in different sectors, including packaging, textiles, and even the manufacture of new bottles. With the changing consumer needs to go green, companies are now more actively incorporating used plastic bottles in their packaging material. The need for recycled polyethylene terephthalate (PET), widely seen in the form of beverage bottles, is particularly impressive as it plays an important role in the circular economy.

Furthermore, advances in sorting and processing methodologies increase the viability of recycling plastic bottles into higher-quality recycled products. The expansion of this segment is representative of a larger global shift toward green methodologies, demonstrating how concentrated action aimed at certain sources, such as plastic bottles, is essential in redefining the marketplace for recycled plastics and creating a more environmentally friendly method of using plastics.

Analysis by Application:

• Packaging
• Electrical and Electronic
• Automotive
• Agriculture
• Construction and Demolition
• Household (Non-Packaging Use)
• Others

Packaging led the market in 2024. Packaging material, a significant source of plastic waste, is witnessing a significant change as companies adopt recycled plastics. This is driven by eco-awareness and the urgent need to minimize the environmental footprint of packaging material. The use of recycled plastics in packaging purposes covers a broad range, from food packaging to beverage packaging, industrial packaging, and beyond.

These recycled plastics provide a green solution to virgin materials for packaging, supporting the circular economy through the reuse of plastic trash that would otherwise be sent to landfills. More industries are turning to recycled plastics in their packaging products to address consumers' calls for environmentally friendly products. The applicability of recycled plastics makes them suitable for use in different forms, including films, bottles, containers, and pouches, to suit different packaging requirements.

Additionally, regulatory efforts and projects fostering the use of recycled content within packaging materials also drive the utilization of recycled plastics. The packaging industry's involvement in the use of recycled materials supports sustainability objectives. It promotes material science and recycling technology innovation, leading to the increased growth and use of these plastics in the packaging sector overall.

Analysis by Plastic Type:

• Polyethylene Terephthalate (PET)
• High Density Polyethylene (HDPE)
• Polypropylene (PP)
• Low Density Polyethylene (LDPE)
• Others

Polyethylene terephthalate (PET) led the market in 2024. PET, a versatile and widely utilized plastic, is highly visible in bottles used for beverages, food packages, and fabrics. Recycling PET is of high priority, considering its extensive use and the ecological issues related to its disposal. The market for recycling PET is experiencing huge growth as industries are becoming more aware of its economic and environmental benefits across applications.

Recycled PET, or more commonly known as rPET, is a key to the circular economy because it lowers the reliance on virgin plastics and lessens the environmental footprint of PET production. Its demand is especially high in the packaging sector because it is used to produce new bottles, containers, and packaging materials. The quality and usability of rPET have been significantly upgraded, making it the go-to option for industries looking for sustainable solutions without sacrificing performance.

In addition, as awareness among consumers regarding the use of plastic waste and recycling increases, demand for products and packaging produced with recycled PET is on the rise. This change in consumer trend, coupled with regulatory encouragement and improvements in recycling technologies, is making it a central influencer in redesigning the market and enabling a more sustainable and eco-friendly plastics sector.

Analysis by Country:

• Germany
• UK
• Italy
• France
• Spain
• Others

In 2024, Germany accounted for the largest market share, playing a pivotal role in shaping Europe's recycling landscape. Its strong environmental policies and commitment to sustainability make it a key influencer and contributor to the sector. The nation's recycling infrastructure is highly developed and comprises advanced sorting and processing technologies, promoting the efficiency and quality of recycled plastics. Government programs in Germany, including extended producer responsibility initiatives and waste management rules, encourage companies to use recycled plastics in their manufacturing activities. The focus on circular economy and plastics waste reduction resonates with the nation's larger sustainability objectives.

In addition, industries nationwide, ranging from automotive and packaging to manufacturing, are widely embracing recycled plastics, especially because of consumer pressure for green products. The consumer's concern for the environment has prompted companies to invest in environmentally friendly practices and incorporate recycled plastics into their products. In addition, the status of the country as a top industrial center is a force that increases the effect of its dedication to recycled plastics, impacting neighboring nations and driving the overall market growth. As Germany keeps leading the way in terms of innovative recycling technologies and environmentally friendly programs, its influence on the market remains central, making it a key force in the larger European recycling market.

Competitive Landscape:

Leading firms are fortifying market expansion with strategic efforts and innovations, while emphasizing sustainability. Such firms invest significantly in leading recycling technology, which helps them to process multistream plastic waste streams efficiently. Through the use of novel sorting, cleaning, and reprocessing methods, such industry leaders improve recycled plastic quality and make it more attractive for more applications. In addition, their focus on research and development makes it easier to produce high-performance recycled plastics that are comparable to virgin plastics in terms of quality and performance. Further, leading firms are building partnerships with stakeholders along the supply chain, from suppliers to manufacturers to retailers. By doing so, they simplify the incorporation of recycled plastics into products and promote a more circular plastic use. These businesses are also proactively reaching out to regulatory agencies for interaction and industry groups for policy support that promotes sustainable behavior and encourages the use of recycled content. Additionally, their focus on corporate sustainability and clear communication appeals to environmentally aware consumers. In highlighting their dedication to plastic waste reduction and carbon emissions, these firms are fulfilling market expectations and establishing a positive discourse regarding the viability and significance of recycled plastics.

The report provides a comprehensive analysis of the competitive landscape in the Europe recycled plastics market with detailed profiles of all major companies, including:

• Müller-Guttenbrunn Group
• MBA Polymers, Inc.
• Paprec Group
• Morssinkhof Rymoplast

Latest News and Developments:

• April 2025: DePoly secured USD 23 Million in seed funding to launch a 500-ton-per-year PET recycling plant in Monthey, Switzerland. Using fossil-free chemical recycling, DePoly breaks down plastics into monomers. The funding supports its future expansion toward commercial-scale operations, advancing circular plastic recycling in Europe.
• March 2025: OMV inaugurated its new ReOil chemical recycling plant in Schwechat, Austria, with a capacity of 16,000 tons per year. The facility processes hard-to-recycle plastics into pyrolysis oil, later refined into monomers for new plastics, helping reduce fossil fuel use and advance circular plastic production in Europe.
• March 2025: Eni’s chemical division, Versalis, inaugurated a new recycled plastic production plant in Porto Marghera, Italy, using mechanically recycled materials for packaging and construction. This initiative is part of Eni’s EUR 2 billion strategy to revive its chemicals business by focusing on recycling, bio-refining, and energy storage while reducing basic chemical operations.
• February 2025: KINGFA inaugurated a chemical recycling facility in Montalbo, Spain, through its Environmental SCI & TECH subsidiary. The plant aims to process 30,000 tons of high-performance recycled plastics annually, strengthening Spain’s circular economy.

Europe Recycled Plastics Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Europe recycled plastics market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Europe recycled plastics market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Europe recycled plastics industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.