Market Overview

The Europe recycled plastics market size reached 13.89 Million Tons in 2025 and is forecasted to reach 20.2 Million Tons by 2034, growing at a compound annual growth rate (CAGR) of 4.2% during 2026-2034. The market growth is fueled by stringent environmental laws, sustainable packaging demand, and widespread adoption of extended producer responsibility programs. The integration of recycled plastics spans industries including packaging, automotive, and construction, driven by government policies and corporate sustainability initiatives.

Study Assumption Years

• Base Year: 2025
• Historical Period: 2020-2025
• Forecast Period: 2026-2034

Europe Recycled Plastics Market Key Takeaways

• The market size reached 13.89 Million Tons in 2025 with a CAGR of 4.2% projected over 2026-2034.
• Plastic bottles lead the source segment with 38% market share in 2025, supported by deposit return schemes and recycling technologies.
• Packaging dominates the application segment at 49% share in 2025, driven by demands for sustainable packaging in food, beverage, and consumer goods.
• Polyethylene terephthalate (PET) holds the largest plastic type share at 42% due to excellent recyclability and bottle-to-bottle recycling initiatives.
• Germany is the leading country in the market with a 24% share, attributed to advanced waste management and manufacturing demand.

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Market Growth Factors

The Europe recycled plastics market is a highly regulated market, with policies focusing on recycled content targets. For example, the Single-Use Plastics Directive defines ambitious recycled content targets for all PET beverage bottles, as well as separate collection targets by the EU member states, and guarantees feedstock access for recycling plants. Recycled content targets for all plastic packaging set in the Packaging and Packaging Waste Regulation broaden the scope of legal obligations across the packaging value chain, and provide long-term predictable demand to ease infrastructure investment.

Corporate sustainability commitments also drive growth as large corporations within consumer goods, packaging, and retail also make announcements of aggressive recycled content targets beyond regulated minimums. These efforts, tied to ESG goals, increase recycling systems and improve recycling quality supporting brands by having recycled materials for their packaging portfolio, increasing brand value, improving reputation, and increasing consumer loyalty. Circularity metrics are also used in corporate reporting to reinforce commitment to recycled plastics.

Collection infrastructure and deposit return schemes increase recyclers' access to recyclables. When comparing countries in Europe with active deposit return schemes, the deposit countries collect a dramatically higher volume than kerbside collection countries. Germany's deposit system is extremely successful, achieving high capture rates and producing a high-quality, consistent recyclate feedstock. Many other countries are considering similar systems to capture both higher volumes and higher quality material. Optical and near-infrared sorting systems can increase the efficiency of separating materials and recycling by creating cleaner (more recyclable) waste streams.

Market Segmentation

Source:

• Plastic Bottles: Constitute the largest source segment with a 38% market share in 2025, driven by strong collection infrastructure, deposit return schemes across the EU, and mature recycling technologies producing high-quality food-contact recyclates.
• Plastic Films
• Rigid Plastics and Foams
• Fibers
• Others

Application:

• Packaging: Leads with a 49% share in 2025, supported by stringent recycled content mandates, rising sustainable packaging demand, food-grade recyclate production, and innovations in design for recycling.
• Electrical and Electronics
• Automotive
• Agriculture
• Construction and Demolition
• Household (Non-Packaging Use)
• Others

Plastic Type:

• Polyethylene Terephthalate (PET): Dominates with 42% share in 2025 due to excellent recyclability, strong collection systems, and widespread use in beverage packaging aligning with bottle-to-bottle recycling.
• High Density Polyethylene (HDPE)
• Polypropylene (PP)
• Low Density Polyethylene (LDPE)
• Others

Country:

• Germany: Market leader at 24% share in 2025, attributed to the highest-performing deposit return scheme globally, extensive waste management infrastructure, expanded deposit requirements, and strong manufacturing demand.
• United Kingdom
• Italy
• France
• Spain
• Others

Regional Insights

Germany is the dominant country in the Europe recycled plastics market, holding a 24% share in 2025. This leadership stems from its comprehensive waste management infrastructure, world-leading deposit return system achieving over 98% collection rate, and a manufacturing sector with strong demand for recycled materials. Government policies enhancing sorting, refund mechanisms, and infrastructure investments further consolidate Germany's position as a European leader in sustainable plastics management.

Key Players

• Veolia Environnement S.A.
• SUEZ S.A.
• Berry Global Inc
• LyondellBasell Industries Holdings B.V.
• TotalEnergies SE
• Borealis AG
• Paprec Group
• Morssinkhof Rymoplast B.V.
• MBA Polymers, Inc
• Jayplas Ltd.

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