New Trends in the Global Plastics Market in 2025

According to the "Plastics Industry Overview 2025" report released by Plastics Europe, global plastics production reached 430.9 million tons in 2024, a year-on-year increase of 4.1%, and an increase of over 16% compared to 2018. Despite regional differences in growth distribution, demand for plastics remains strong, particularly concentrated in the packaging, consumer goods, and automotive industries. However, the global production landscape is undergoing profound changes, with the center of production shifting from Europe and the Americas to Asia, reshaping the global industry landscape.

The Rise of Asia: China Becomes the Global Plastics "Engine"

The Asia-Pacific region has firmly established itself as the core of global plastics production, with China alone accounting for approximately one-third of global output, far exceeding the combined total of the EU-27 and the UK. From a broader perspective, Asia now accounts for approximately 57% of global plastics production, and its share has increased dramatically in recent years. In contrast, Europe's share has declined from 22% in 2006 to approximately 12% in 2024, with production reaching only 54.6 million tons in 2024. Although there was a slight rebound after the decline in 2022-2023, the overall trend is downward. This is not merely a change in quantity, but a structural restructuring.

Asia's rise is attributed to:

Cost advantage: Energy and raw material prices are significantly lower than in Europe;

Demand-driven: Expanding domestic demand stabilizes the market;

Technological investment: Upgrading of manufacturing and continuous improvement in automation levels.

European Plastics Production Decline

In contrast, the European plastics industry is facing unprecedented challenges. High energy costs, carbon and climate taxes, expensive raw material costs, and stringent environmental regulations are putting pressure on companies. These multiple factors combined are continuously squeezing European production profits, weakening competitiveness, and slowing investment in new capacity. This forces European companies to become increasingly reliant on imports, further consolidating Asia's dominant position.

While European plastics production rebounded slightly to 54.6 million tons in 2024, it remained below pre-pandemic levels and marked the third consecutive year that Europe was a net importer of polymers (net imports of approximately 1.6 million tons). Meanwhile, China and other Asian countries rapidly expanded their production capacity, solidifying the eastward shift of the plastics industry's "center of gravity."

Circular Plastics: The Gap Between Policy Ambitions and Actual Production Capacity

Despite Europe's pioneering implementation of numerous recycling and bioplastics policies, its circular plastics output has stagnated. In 2024, only 15.4% (approximately 8.4 million tons) of EU plastics came from recycled or bio-based materials, almost unchanged from the previous two years. This increase was largely due to a reduction in fossil-based plastics rather than strong growth in circular materials. The difficulty in scaling up recycling systems has left Europe in an awkward position of "policy ahead of schedule, production lagging behind." In contrast, China's circular plastics production reached approximately 13.4 million tons in 2024, demonstrating that Asia's capacity expansion in the circular materials sector is more flexible and efficient.

Meanwhile, the global waste plastics industry is facing profound structural changes. The industry size is projected to exceed $85 billion by 2025, with mechanical recycling rates rising to 28% and chemical recycling capacity growing at an annual rate of over 40%. The industry's driving force has shifted from solely environmental pressure to a dual engine of resource security and a low-carbon economy. Newly revised international conventions mandate that contracting parties reduce waste plastic generation by 15% by 2030, directly prompting over 70 countries and regions worldwide to upgrade their local regulations. The industry's technological routes are diversifying, with emerging technologies such as enzyme-catalyzed depolymerization and high-temperature pyrolysis moving from demonstration phases to commercial applications.

Regional market structures are rapidly reshaping, with the Asia-Pacific region accounting for 52% of global waste plastic processing, while North America and Europe are focusing on high-value recycling applications. Packaging remains the largest application scenario for waste plastics, accounting for approximately 58% of recycling volume in 2025, but demand growth in the automotive electronics and textile and apparel sectors is significantly increasing, with projected compound annual growth rates of 18% and 22%, respectively. Brands' sustainability commitments are creating strong market demand, with over 200 multinational companies globally committing to increasing their average recycled plastic usage to 30% by 2027.

Global Opportunities in a New Landscape: European Demand, Asian Supply

Europe's circular plastics gap is creating a huge global business opportunity. With the impending implementation of new regulations such as the Packaging and Packaging Waste Regulation, European manufacturers have an unprecedented demand for high-quality recycled polymers, green raw materials, and technological support. This means:

European manufacturers need to restructure their supply chains and work with global partners to build a sustainable system;

Green materials and low-carbon production are no longer just policy objectives, but core elements of corporate competitiveness.

The international trade landscape is undergoing structural adjustments. Cross-border trade in recycled plastic pellets is projected to grow by 25% by 2025, while intra-ASEAN trade is surging by 60%. Technology exports are becoming a new growth driver; Chinese companies have exported pyrolysis equipment to 30 countries, and European companies hold a 75% share of the global high-end intelligent sorting system market. Key challenges facing the industry include raw material supply stability, technological and economic breakthroughs, and green trade barriers. These factors will determine the pace of market consolidation over the next five years.

Kitech’s Commitment to Global Green Development

This is where companies leading in plastic recycling technology become crucial partners. For instance, innovators like Kitech Machinery are vital in bridging this gap by providing the advanced equipment needed to scale up recycling efforts efficiently. The international trade of recycled plastic pellets is forecast to grow by 25% in 2025, with trade within ASEAN nations surging by 60%. Technology export is also a new growth area, with Chinese pyrolysis equipment being sold to 30 countries and European sorting systems dominating 75% of the high-end global market.

The road ahead has challenges, including securing a stable supply of waste plastic, making new technologies cost-effective, and navigating green trade rules. However, the direction is clear: the future of plastics is being shaped in Asia, while the demand for a sustainable, circular model, driven by companies like Kitech Machinery and others committed to advancing plastic recycling, is creating a new and interconnected global marketplace.