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Home > News > Regional News

K Report on plastics circularity (I): Outlook in Europe, North America, and South America

Source：Adsale Plastics Network Date ：2025-07-09 Editor ：VC
Copyright： This article was originally written/edited by Adsale Plastics Network (AdsaleCPRJ.com), republishing and excerpting are not allowed without permission. For any copyright infringement, we will pursue legal liability in accordance with the law.

The world is experiencing a raw material crisis: more than 100 billion tons of raw materials are consumed annually but over 90% of the raw materials used are not recycled. An alarming ratio flagged up by the European Investment Bank (EIB). Thus, K 2025 highlights “Shaping the Circular Economy” as one of the trade fair’s three hot topics.

 

An analysis by management consultancy Material Economics shows that Europe could save 450 million tons of CO₂ equivalents through closed material cycles by 2030 – this corresponds to 8% of the current emissions. In the long term, the Ellen MacArthur Foundation forecasts that up to 45% of emissions could be avoided by a closed-loop circular economy.

 

This transformation also holds enormous economic potential: according to estimates by consulting group EY, the use of secondary raw materials reduces energy consumption by 20% to 90%, saves large amounts of water and could save European firms up to EUR 465 billion in material costs per year. The International Labour Organisation (ILO) also expects seven to eight million new jobs to be created worldwide by the transition to a circular economy by 2030. More and more use cases show that circularity makes not only ecological but also economic sense.


_AWR6888_480.jpg

(Credit: Andreas Wiese/Messe Düsseldorf)


Catching up to do for plastics industry

 

The plastics industry plays a pivotal role in this transformation. In 2023 413.8 million tons of plastics were produced worldwide, according to Plastics Europe, but the share of recycled materials continues to be low: only 8.7% of plastics were recycled – most of them by mechanical recycling – whereas the lion’s share was incinerated or landfilled.

 

This is happening even though recyclates hold an enormous potential. Their production requires markedly less energy than the production of new products from fossil raw materials, thereby substantially reducing CO₂ emissions. On top of this, their use increases supply security – a factor of rising importance in times of geopolitical crises.

 

However, recycling is technically demanding – and often more expensive than producing new plastics. After all, post-consumer plastics have to be sorted, cleaned and prepared with great effort. In addition, the legal requirements are strict, high-quality recyclates scarce and many processes energy-intensive – all resulting in higher production costs compared to new plastics.

 

“But nobody wants to pay higher costs,” stresses Ulrich Reifenhäuser, Chairman of the K Advisory Board. “Plastics are so successful because they are so much better than other materials. But the transition to the circular economy costs money. This cost issue will not be overcome without regulatory requirements.”

 

Europe looks to regulation

 

While other nations focus on voluntary commitments and market-oriented solutions, Europe regulates by law. Strategies such as the “Circular Economy Action Plan” (CEAP) and regulations such as the Packaging and Packaging Waste Regulation (PPWR) and the Single-Use Packaging Directive (SUPD) drive the transition to circularity by means of recycling rate, mandatory recyclate content and Extended Producer Responsibility (EPR).

 

Chemical ingredients are also increasingly moving into the focus of the EU. Especially disputed is the handling of PFAS since a ban could make recycling considerably more difficult – because plenty of waste plastics would then be classified as contaminated and eliminated from the circular economy.

 

Wolfgang Große Entrup, Director General of VCI, therefore warns against a blanket ban: “With each individual substance banned in the EU the risk grows that more of our industry players move to less regulated regions. This, however, does not solve the original problem.”


Read more: K Report on plastics circularity (II): Asia between advances and structural deficits


A patchwork of strategies in North America

 

In North America, circularity strategies are heavily fragmented. The US is pursuing an approach that comprises both state initiatives and private business measures. 33 US states have established EPR programmes, which oblige manufacturers of single-use packaging to financially participate in waste management. By 2032 100% of packaging is to be recyclable or compostable, and 65% of one-way packaging be recycled. Other states, however, lag behind.

 

There is also another reason why plastic recycling in the USA only has a low uptake compared to the rest of the world, despite modern recycling technologies: “There is neither a national nor a state-wide recycling programme that would cover at least a complete federal state. Instead, individual cities and municipalities decide whether, how and which waste they collect and sort,” explains the German federal economic promotion agency, Germany Trade & Invest (GTAI).

 

Canada pursues a more comprehensive approach to promote the circular economy. The government has introduced the “Federal Plastics Registry”, a national registry for plastics to collect data about the production, use and disposal of plastics. It is designed to increase transparency and make for more effective plastic management.

 

The “Action Plan on Zero Plastic Waste” aims to reduce plastic waste and establish a circular economy for plastics. It includes measures for reducing single-use plastics and promoting reuse and recycling. Beyond this, a gradual approach is pursued to reduce plastic waste by banning single-use plastic products and introducing EPR.

 

South America has a long way to go

 

In South America, the circular economy is still in its infancy – some 90% of waste ends up at landfills and recycling is only of secondary importance.

 

Chile, Colombia and Brazil have national return and circularity schemes such as Chile’s “Ley REP”, Colombia’s “Basura Cero” initiative or voluntary industry solutions in Brazil. Uruguay banks on consistent waste management with its Integrated Waste Management Act (Ley 19.829) and promotes packaging recycling.

 

Despite various advances and initiatives, however, infrastructure remains insufficient in many South American regions and success will depend on further state investment, international cooperation and stronger awareness raising among the population.

 


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Source：Adsale Plastics Network Date ：2025-07-09 Editor ：VC
Copyright： This article was originally written/edited by Adsale Plastics Network (AdsaleCPRJ.com), republishing and excerpting are not allowed without permission. For any copyright infringement, we will pursue legal liability in accordance with the law.

The world is experiencing a raw material crisis: more than 100 billion tons of raw materials are consumed annually but over 90% of the raw materials used are not recycled. An alarming ratio flagged up by the European Investment Bank (EIB). Thus, K 2025 highlights “Shaping the Circular Economy” as one of the trade fair’s three hot topics.

 

An analysis by management consultancy Material Economics shows that Europe could save 450 million tons of CO₂ equivalents through closed material cycles by 2030 – this corresponds to 8% of the current emissions. In the long term, the Ellen MacArthur Foundation forecasts that up to 45% of emissions could be avoided by a closed-loop circular economy.

 

This transformation also holds enormous economic potential: according to estimates by consulting group EY, the use of secondary raw materials reduces energy consumption by 20% to 90%, saves large amounts of water and could save European firms up to EUR 465 billion in material costs per year. The International Labour Organisation (ILO) also expects seven to eight million new jobs to be created worldwide by the transition to a circular economy by 2030. More and more use cases show that circularity makes not only ecological but also economic sense.


_AWR6888_480.jpg

(Credit: Andreas Wiese/Messe Düsseldorf)


Catching up to do for plastics industry

 

The plastics industry plays a pivotal role in this transformation. In 2023 413.8 million tons of plastics were produced worldwide, according to Plastics Europe, but the share of recycled materials continues to be low: only 8.7% of plastics were recycled – most of them by mechanical recycling – whereas the lion’s share was incinerated or landfilled.

 

This is happening even though recyclates hold an enormous potential. Their production requires markedly less energy than the production of new products from fossil raw materials, thereby substantially reducing CO₂ emissions. On top of this, their use increases supply security – a factor of rising importance in times of geopolitical crises.

 

However, recycling is technically demanding – and often more expensive than producing new plastics. After all, post-consumer plastics have to be sorted, cleaned and prepared with great effort. In addition, the legal requirements are strict, high-quality recyclates scarce and many processes energy-intensive – all resulting in higher production costs compared to new plastics.

 

“But nobody wants to pay higher costs,” stresses Ulrich Reifenhäuser, Chairman of the K Advisory Board. “Plastics are so successful because they are so much better than other materials. But the transition to the circular economy costs money. This cost issue will not be overcome without regulatory requirements.”

 

Europe looks to regulation

 

While other nations focus on voluntary commitments and market-oriented solutions, Europe regulates by law. Strategies such as the “Circular Economy Action Plan” (CEAP) and regulations such as the Packaging and Packaging Waste Regulation (PPWR) and the Single-Use Packaging Directive (SUPD) drive the transition to circularity by means of recycling rate, mandatory recyclate content and Extended Producer Responsibility (EPR).

 

Chemical ingredients are also increasingly moving into the focus of the EU. Especially disputed is the handling of PFAS since a ban could make recycling considerably more difficult – because plenty of waste plastics would then be classified as contaminated and eliminated from the circular economy.

 

Wolfgang Große Entrup, Director General of VCI, therefore warns against a blanket ban: “With each individual substance banned in the EU the risk grows that more of our industry players move to less regulated regions. This, however, does not solve the original problem.”


Read more: K Report on plastics circularity (II): Asia between advances and structural deficits


A patchwork of strategies in North America

 

In North America, circularity strategies are heavily fragmented. The US is pursuing an approach that comprises both state initiatives and private business measures. 33 US states have established EPR programmes, which oblige manufacturers of single-use packaging to financially participate in waste management. By 2032 100% of packaging is to be recyclable or compostable, and 65% of one-way packaging be recycled. Other states, however, lag behind.

 

There is also another reason why plastic recycling in the USA only has a low uptake compared to the rest of the world, despite modern recycling technologies: “There is neither a national nor a state-wide recycling programme that would cover at least a complete federal state. Instead, individual cities and municipalities decide whether, how and which waste they collect and sort,” explains the German federal economic promotion agency, Germany Trade & Invest (GTAI).

 

Canada pursues a more comprehensive approach to promote the circular economy. The government has introduced the “Federal Plastics Registry”, a national registry for plastics to collect data about the production, use and disposal of plastics. It is designed to increase transparency and make for more effective plastic management.

 

The “Action Plan on Zero Plastic Waste” aims to reduce plastic waste and establish a circular economy for plastics. It includes measures for reducing single-use plastics and promoting reuse and recycling. Beyond this, a gradual approach is pursued to reduce plastic waste by banning single-use plastic products and introducing EPR.

 

South America has a long way to go

 

In South America, the circular economy is still in its infancy – some 90% of waste ends up at landfills and recycling is only of secondary importance.

 

Chile, Colombia and Brazil have national return and circularity schemes such as Chile’s “Ley REP”, Colombia’s “Basura Cero” initiative or voluntary industry solutions in Brazil. Uruguay banks on consistent waste management with its Integrated Waste Management Act (Ley 19.829) and promotes packaging recycling.

 

Despite various advances and initiatives, however, infrastructure remains insufficient in many South American regions and success will depend on further state investment, international cooperation and stronger awareness raising among the population.

 


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K Report on plastics circularity (I): Outlook in Europe, North America, and South America

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