The global plastic recycling industry is facing one of its toughest challenges ever. Across the UK and Europe, recycling plants are shutting down at an alarming rate. In the UK, waste management company Biffa recently closed its £7 million Sunderland plant, while Viridor shut down facilities in Avonmouth, Skelmersdale, and Rochester. Similar closures are happening across Europe, where big players like Veolia are closing plants in Germany, and seven recyclers in the Netherlands stopped operations last year.
This wave of closures has led to the loss of nearly one million tonnes of recycling capacity across Europe since 2023, according to Plastic Recyclers Europe. The organisation warns that without urgent government action, Europe could lose its recycling base and become dependent on cheap imports and increased waste dumping, threatening both the environment and the economy.
The Rising Pressure on Plastic Recycling
Industry experts believe that the problem lies in high energy and labour costs, combined with cheaper virgin and recycled plastics from Asia. Many European and UK plant operators face a difficult choice — continue running their plants with no profit or shut them down completely.
The issue isn’t just limited to Europe. In the United States, the low cost of virgin plastic is causing similar problems, leading to missed recycling targets. The result is a growing global dependence on Asia’s recycling plants, creating both environmental and economic risks.
Why the System Is Breaking
The UK’s heavy dependence on exporting plastic waste makes things worse. In 2024, the country exported around 600,000 tonnes of plastic waste — 5% more than the previous year. Weak legislation has created loopholes that make exporting cheaper than recycling locally. At the same time, many manufacturers prefer to use cheaper virgin plastic instead of recycled materials, even if it means paying environmental taxes.
Experts like Ahmed Detta, founder of Enviroo, believe the industry is struggling to create a truly circular economy. He points out that brands are not motivated to switch to recycled materials because the system doesn’t reward them for doing so. Instead of working together, companies often choose short-term profit over sustainability.
The Fight for Change
Industry body RECOUP warns that the UK is on the verge of losing its recycling industry completely unless major interventions happen soon. The organisation’s head of policy, Steve Morgan, says that while new technologies are emerging, most recycling companies can’t scale up or survive without better financial support and updated regulations.
RECOUP is calling for a single plastic recycling certification system to reduce waste exports and encourage domestic recycling. Morgan hopes that upcoming government consultations will bring serious changes to protect the industry and strengthen the circular economy.
A Ray of Hope
Despite the struggles, there are positive developments. The UK government has promised £10 billion in investment for new recycling and sorting facilities. The upcoming Deposit Return Scheme, set to launch in 2027, will also encourage people to return bottles and cans for recycling by offering small refunds.
Some companies are pushing forward despite the challenges. Biffa has acquired bottle manufacturer Esterform, which uses recycled PET, while Enviroo is building a £58 million facility in northwest England to process 35,000 tonnes of plastic annually by 2026. Similarly, Plastic Energy is transforming plastic waste into pyrolysis oil, which can be used to create high-quality plastic for food and medical use.
These innovations offer hope for a more sustainable future. However, experts warn that without consistent investment and strong government policies, the recycling industry could lose its momentum and fall behind.
The Future of Plastic Recycling
If major reforms are made, plastic recycling could still thrive. But without them, Europe risks going back 20 years — when plastic waste mostly ended up in landfills or was incinerated. As companies like Plastic Energy and Enviroo demonstrate, success lies in focusing on real challenges and building smarter, more sustainable recycling systems.
The industry’s future now depends on collaboration, innovation, and decisive action from both governments and manufacturers. If these efforts align, the global recycling system could turn today’s crisis into a long-term solution for a cleaner, circular economy.
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