ECONOMY AND MARKET
The plastics industry is facing a critical phase characterised by reduced production capacity, recycling challenges and new EPR regulations. Polyethylene is emerging as a strategic material, but the transition requires clear rules to safeguard the competitiveness and sustainability of the supply chain.
POLYETHYLENE: BETWEEN AN INDUSTRIAL CRISIS AND
NEW EPR REGULATIONS
Italian technology plast / June-July 2026
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The European plastics industry is going through one of the most complex phases of recent decades. Amid an economic slowdown, geopolitical instability, tensions in the recycling markets and a rapidly evolving regulatory framework, the supply chain finds itself having to rethink its balance and development models. It is against this backdrop that the study on plastic goods was presented on 22 April in Milan at the conference organised by Ecopolietilene, the EPR consortium for the recycling of waste from polyethylene goods. The analysis – carried out by Plastic Consult – offers a detailed insight into the sector’ s evolution over the last twenty-five years and clearly illustrates the downsizing currently underway: over 15 million tonnes of production capacity lost in Europe across the chemical, intermediates and polymers sectors. This figure signals a progressive erosion of the continent’ s industrial base, just as the environmental transition requires investment, stability and a long-term vision.
RECYCLING IN DIFFICULTY AND AN UNBALANCED MARKET The crisis does not affect primary production alone. Plastic recycling, hailed as a pillar of the European circular economy, is also experiencing a period of severe strain. The fall in prices of virgin raw materials, rising operating costs and weak industrial demand have put the economic sustainability of plants under pressure. According to the data presented, in 2025 the Italian thermoplastics market shows only apparent stability: volumes of virgin polymers remain virtually constant, whilst the use of recycled materials is forecast to decline(– 7.5 % compared to 2024), interrupting a growth trend that in previous years seemed well-established. A clear sign of the competitive difficulties faced by recycled materials in the absence of uniform market conditions and effective regulatory tools. Further complicating the picture is the growing complexity of postconsumer streams, which today account for around 75 % of secondary raw materials. Compared to industrial waste, these streams require more complex collection, sorting and treatment processes,
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