European plastics recycling has reached a critical juncture. Plastics Recyclers Europe (PRE) reports the sharpest decline on record for 2024, with hundreds of kilotonnes of capacity closed and warnings of an imminent collapse. Early indications for 2025 point to a deeper crisis, with closures up by around 50% and nearly one million tonnes of recycling capacity lost in three years. For commercial real estate owners, asset managers and ESG leads, this macro trend translates into tangible risk: waste management costs may rise, data becomes less reliable, and reporting requirements tighten. This post translates the headline figures into practical steps CRE teams can take to protect operations, sustain circular economy goals, and maintain portfolio value. The primary keyword here is European plastics recycling.
The Problem
The Plastics Recyclers Europe figures show a dramatic shift in capacity across the continent. About 300 kilotonnes of annual capacity were forced to close in 2024, marking the largest contraction the industry has ever recorded. Preliminary figures for 2025 suggest a deeper crisis, with facility closures up by roughly 50% and the loss of nearly one million tonnes of recycling capacity in just three years. Across Europe, total installed plastics recycling capacity stood at 13.5 million tonnes in 2024, a level PRE describes as well below the 6% annual growth required to meet targets under the forthcoming Packaging and Packaging Waste Regulation (PPWR).
Recyclers are contending with a mix of high production and energy costs, falling demand and an influx of low‑priced, unregulated plastic imports from outside the region. Polyolefin films and PET were the most severely affected materials, each representing around a quarter of total capacity closures between 2023 and 2024. The Netherlands and the United Kingdom together accounted for half of the losses. UK closures continued into 2025, including Viridor’s Rochester facility, Biffa’s Sunderland plant, and Vanden’s Whittlesey site. For the first time in over a decade, both the volume of input material processed and the recyclates produced in Europe fell year on year, according to the report. Total recyclate production declined from 7.7 million tonnes in 2023 to about 7.5 million tonnes in 2024, reflecting weaker demand and widespread facility closures. The downturn mirrored the sector’s finances, with turnover slipping from €9.1 billion in 2023 to €8.6 billion in 2024, a 5.5% fall. PRE has urged policymakers to act with urgency, calling for targeted actions to stabilise the market, the introduction of fair and enforceable regulations, tighter controls on non‑compliant imports, lower energy and production costs for recyclers, and harmonised reporting and verification.
For CRE and ESG teams, the upshot is clear: the market for recycled materials is tightening just as regulatory expectations grow. This creates a double pressure on property portfolios that rely on clear, auditable waste data for both operating decisions and investor reporting. The sustainability agenda becomes harder to prove when the supply side is shrinking and data streams are more volatile. The takeaway is simple but powerful: real progress depends on reliable data and agile processes that can adapt to a tightened market.
The Implications
Regulatory and reporting pressures
The tightening PPWR framework, coupled with CSRD, GRI and GRESB expectations, means portfolios must demonstrate transparent, traceable waste data and demonstrable progress toward a circular economy. When capacity is in decline, the quality of the data matters more than ever. If data gaps exist or reporting lacks audit trails, landlords risk underperforming ESG metrics or facing scrutiny during investor reporting rounds.
Cost volatility and procurement risk
Energy costs, transportation and processing charges are all under pressure. Imports of cheaper plastics push down demand for local recyclates, while local closures reduce the available capacity for onsite or nearby processing. That combination can push disposal and reprocessing costs higher for tenants and property managers alike, complicating budget planning and tenant recharging models.
Operational resilience and tenant relations
Waste data informs service charges and tenant recharges. If waste streams are poorly tracked or misallocated, tenants may push back on fees or challenge sustainability targets. In a market with reduced processing capacity, operators need precise, timely data to optimise waste routing, negotiate with hauliers and recyclers, and sustain a credible climate or sustainability programme.
To navigate these pressures, portfolio teams should prioritise three actions:
- Strengthen data capture across all waste streams, with auditable records that support regulator and investor reporting.
- Build flexibility into procurement and service contracts to cope with tighter capacity and price volatility.
- Improve transparency with tenants by linking waste charges to measurable sustainability metrics.
Practical implications for CRE and ESG strategy
The data story behind the headline numbers matters as much as the numbers themselves. A portfolio that can show real‑time waste flows, recyclate volumes, and associated costs will be better placed to secure funding, attract tenants who value sustainability and meet evolving regulatory expectations. In short, data discipline becomes a competitive advantage in a tighter, more regulated market.
The Solution
In CRE, the answer lies in improved visibility and automation. By capturing detailed waste data, portfolio teams can forecast volumes, allocate costs accurately and identify opportunities to increase recycling rates even when external capacity is constrained. Real‑time insights enable smarter procurement, better tenant charging, and clearer reporting for ESG frameworks.
Platforms that offer real‑time waste data and automated ESG reporting can help transform this challenge into an opportunity. With accurate data on waste streams and recyclate outputs, asset managers can optimise sorting, reduce contamination, and make evidence‑based decisions about outsourcing and capital investment. For portfolios with multiple sites, decentralised waste management becomes easier to coordinate when data flows are standardised and visible across the entire estate. See how real‑time waste data can inform your decisions and enhance reporting accuracy.
Digital tools that deliver CSRD/GRI/GRESB aligned reporting simplify assurance processes and save time during audits. They can also support more transparent tenant charging models, helping tenants understand the value they receive from improved waste management and circular practices. Platforms such as Wastify offer a category of solution that integrates waste data with ESG reporting, helping you maintain control over your portfolio even as market conditions shift. real-time waste data and AI-powered ESG reporting are practical ways to turn data into obligation‑fulfilling actions. The goal is to align waste strategies with financial planning, tenant expectations and regulatory timelines, so you can protect portfolio value and sustainability outcomes.
For organisations looking to close the loop, a unified platform that covers data capture, analysis and reporting is the most efficient path. It reduces the burden of manual data collection, improves accuracy, and provides a clear trail for audits. This approach not only supports compliance but also demonstrates real progress toward circular economy goals, even in times of market stress. A practical, data‑driven mindset is the closest thing to resilience in a volatile waste landscape.
From Guesswork to Actionable Insights
The European plastics recycling sector faces a period of intensified pressure, but this is precisely where robust data and smart automation add value. By investing in visibility, flexible procurement and credible reporting, CRE portfolios can protect operating budgets, support ESG commitments and keep pace with evolving regulation. The path from uncertainty to clarity starts with better waste data, transparent charging and a modern, AI‑assisted reporting workflow.
Visit Wastify AI to explore real‑time waste data and ESG reporting for your portfolio.
