Urgent Need for Cost Reduction in Dutch Plastic Recycling Sector
Amsterdam, Thursday, 4 September 2025.
Invest-NL’s study reveals the Dutch plastic recycling sector faces potential bankruptcies without structural cost reductions, threatening the nation’s circular economy leadership.
Challenges Facing the Dutch Recycling Sector
The Dutch mechanical recycling sector is currently under severe pressure from multiple fronts. European legislation, particularly the Packaging and Packaging Waste Regulation (PPWR), has intensified the demand for recycled plastics, further stressing an industry already grappling with high energy costs, stringent environmental regulations, and heavily contaminated waste streams. This situation has been exacerbated by the influx of cheaper recycled plastics from countries like China and the United States, making it increasingly difficult for local companies to compete [1].
The Impending Crisis
Recent data indicates that without immediate structural cost reductions, the Dutch recycling industry faces a wave of bankruptcies. In 2024 alone, seven Dutch recyclers declared bankruptcy, and in 2025, several production lines were shut down. These closures threaten to dismantle the infrastructure necessary for maintaining a circular economy, potentially undermining the Netherlands’ leading position in Europe in terms of circular plastics [1].
Invest-NL’s Strategic Response
In response to these challenges, Invest-NL, in collaboration with Copper8, SD&Co, and Verpact, has conducted a comprehensive study. The study underscores the necessity for substantial cost reductions to ensure the sector’s profitability and sustainability. The findings will be presented in the report titled ‘A Circular Economy for Plastic Recycling,’ scheduled for release ahead of the parliamentary committee debate on the circular economy and plastic recycling on 11 September 2025 [1].
Looking Ahead
The upcoming report aims to provide actionable insights for policymakers and industry stakeholders to avert the impending crisis in the Dutch recycling sector. With the parliamentary debate on the horizon, it is imperative for stakeholders to adopt the recommendations to safeguard the future of the recycling industry in the Netherlands and to continue leading Europe in circular economy initiatives [1].