— By Plasteurope.com staff — 

With the year on its way out, it’s time again to take stock of the European plastics industry and related sectors with Plasteurope.com’s annual Year-Ender series. As was our gift to you last December, we’re bringing you an analysis of the year that was, with hints of what you could look forward to in 2025. Our goal, simple as always, is to help you make better business decisions with a clearer understanding of the trends, challenges, and transformations in the industry, with insights from expert voices in each sector concerned – all easily within reach at the top of your Plasteurope.com newsletter each morning.

This year, from 12 to 20 December, several topics are going under PIE’s microscope. We kick off tomorrow with our year-ender on the European economy, where things appear set to improve in the coming year, albeit mildly, after weak Eurozone growth in 2024. There exist, however, uncertainties about what lies ahead for Europe in light of Donald Trump’s imminent return to the White House and his threats of tariffs – this, among other disruptions to be faced in 2025.

Tariffs and trade-war threats also feature in a sector that in particular is struggling in Europe – with more mixed results on global markets – namely the automotive industry. Electric vehicles (EVs) were at the centre of much of the action this year, with Europe imposing tariffs on Chinese-made EVs while the continent witnessed declines in volumes and market shares; in China, the EV situation looked much better. Europe’s automotive woes have not been limited to electric vehicles, however. For the year to come, Trump’s return is also a concern for European car manufacturers, while there are other challenges facing the growth of the EV market specifically, including the lack of a robust charging infrastructure.

At the start of next week, hop the Channel with us as we zoom in on the UK plastics industry. It’s been a long while since the British political landscape changed as much as it did in 2024. In our year-ender, the implications of the change in government (and its recently announced Budget) for the plastics industry are considered in detail, with input from a wide range of industry voices. Of relevance this year and next are the country’s recent recognition of the mass-balance approach in chemical recycling, the Plastic Packaging Tax (PPT), the issue of waste exports, and a recycling system on the brink of collapse, to name a few. Legislative progress in 2025 on the Extended Producer Responsibility (EPR) scheme would also be welcomed by many.

Back on the continent, where there are plastics, there are prices. Over the course of 2024 – and long before – the Plasteurope.com Price Team has reliably delivered expert and comprehensive market analyses and reports on your feedstocks and polymers of choice. This year, we even introduced something new: the PIE Polymer Price Forecasts. In our year-ender on polymer price trends, read about how the trajectory of pricing in 2025 is likely to be influenced by the dominant position of Asian producers, a situation leading to cheaper imports that then increase pressure on manufacturers in Europe – this is particularly the case for PET, polyethylene, and polypropylene. Plastics production and thus prices could also be impacted by global supply chain challenges, such as transportation disruptions or energy price volatility, among other things.

Looking east, the ongoing conflict in Ukraine is set to enter its third year in February 2025. The war has heavily impacted the Russian and Ukrainian economies, with effects felt in the plastics industries of each country. Polymer production in Russia is experiencing decade-low growth, while Western sanctions have hindered the sourcing of equipment and raw materials – not only in the West, but also in the East. Given the overall situation, hardly any investment is being made in Ukraine, not least in the nation’s plastics industry. Furthermore, key petrochemicals producers remain out of action. A potential peace deal in the new year could breathe new life into the industry.

Our penultimate offering is an analysis of the state of the European recyclate market. In Germany, for example, the use of post-consumer (PCR) and post-industrial recyclate (PIR) has steadily increased, in line with corresponding increases in PCR volumes, though certain targets may remain out of reach. In the latter half of 2024, demand for recyclate was consistently poor, giving way to crumbling prices and inventory reduction across the board. A more mixed situation was seen at the start of the year.

Finally, we’ll top things off with something surely on the minds of most Europeans this winter: energy prices. Gas prices appear fated for further uncertainty, a situation that could create ripple effects for energy-intensive production processes in the plastics industry, given the role of natural gas as raw material in feedstock production. Also of concern is the transit of Russian gas through Ukraine to the rest of Europe – the agreed contract for which will expire on 1 January of the new year, leaving questions of potential future supply unanswered. Alongside gas, the market situation and likely price trajectories for electricity will also feature.

With all that said, keep an eye on our homepage – and your inbox – each morning over the next week and half to see what was and foresee what will be for the European economy, UK plastics industry, polymer price trends, as well as the energy, recyclate, and global car markets, in addition to a look at the ongoing impact of the war between Russia and Ukraine.

We wish you an eventful end to the year, happy holidays, and hope you enjoy reading our Year-Enders 2024!