French Plastics Industry Faces Economic and Recycling Challenges with Circular Economy and Diversification Strategies

In 2024, the leading 500 plastic processors in France reported a growth of 5.1%, with combined revenue reaching €31.4 billion and employing 105,500 people. The French plastics sector, positioning itself as the third largest in Europe after Germany and Italy, generated nearly €39.6 billion in revenue in 2023, contributing 2.6% to the national GDP with a total turnover of €76 billion. Despite these positive figures, the outlook for 2025 is increasingly concerning. Expecting a downturn marked by a potential 10-15% revenue loss, the sector is bracing for closures of recycling installations and vapor crackers.

Pierre-Jean Leduc, president of Polyvia, acknowledged the sector's resilience but highlighted growing caution among industrial players due to challenging economic conditions both nationally and globally. Bénédicte Durand Deloche, president of Polyvia Auvergne-Rhône-Alpes, sounded the alarm on the rapid deterioration of economic conditions and the threat to Europe's recycling capacities, estimating nearly one million tons of recycling capacity could be lost by the end of 2025. High production costs, diminished demand, and low-priced imports from China are heavily impacting the recycling industry, which suffers from the declining price disparity between virgin PET and recycled materials.

As a strategic response, initiatives like Elipso's "Plastic Packaging Plan 2040" aim to bolster circular economy practices within the industry. Experts emphasize that embracing diversification—technically, economically, geographically, and across sectors—is vital to the industry's sustainable future. These measures are considered essential for the sector to navigate the current crisis and foster long-term growth amid global economic volatility and evolving market dynamics.