European recycling industry faces capacity losses and market volatility

The European recycling industry is facing significant challenges as approximately one million tons of recycling capacity have been lost over the last three years, according to Plastics Recyclers Europe. During a circular economy forum in Berlin, experts noted that while technical expertise and capacity exist, the economic viability of recycling is threatened by price competition between recycled materials and new plastics.

Recycling companies are struggling with the price gap between virgin plastics and recyclates, which is heavily influenced by international raw material markets and oil prices. For instance, the price difference between virgin and recycled HDPE reached as high as 1,140 euros per ton earlier in 2026 due to geopolitical factors. This volatility complicates investment planning and calculation for recyclers.

In Austria, ÖKOPoint GmbH is working to expand circular logistics by leveraging existing depot networks to manage the collection and reuse of goods. The company aims to apply lessons learned from single-use deposit systems to broader resource cycles, emphasizing the need for seamless coordination between collection, transport, and recycling to ensure materials remain in the economic loop.