Towards a more circular and competitive plastics industry

Expansión – Plastics Europe Observatory

Xavier Ribera, Director of Communications, Institutional Relations and Sustainability at BASF Spain and Portugal
Carolina Gregorio, Director of Public Affairs at Dow for Plastics and Specialty Plastics in EMEA
Núria Aymerich, Special Commissioner for Industrial Competitiveness and SMEs at the Ministry of Industry
Alicia Martín, Managing Director of Plastics Europe for the Iberian Region
Pablo Rupérez, Director of European Affairs at LLYC and Associate Professor at San Pablo-CEU University

Juan Miguel Revilla, Madrid 7th of April 2026

The plastics industry is a strategic pillar of the European and Spanish economies. In Spain alone, it accounts for around 2.1% of national GDP, and its 3,700 companies generate more than 97,000 direct jobs. No less important is its role as a supplier of key components for sectors such as mobility, renewable energy, electronics and healthcare. However, the European industry’s share of total global plastics production has fallen from 22% in 2006 to 12% in 2024. And in the last two years alone, the sector has lost more than 3,000 companies and over 35,000 jobs across the entire European value chain: plastic material producers, converters and recyclers.

At the ‘Plastics Industry Observatory: Competitiveness and Strategic Autonomy’ event, organised on 25 March in Madrid by EXPANSIÓN in collaboration with Plastics Europe, the causes of this decline were discussed and, above all, how to reverse it and ensure that the European and Spanish plastics industries remain competitive. The round table was composed of Alicia Martín, Managing Director of Plastics Europe for the Iberica Region; Núria Aymerich, Special Commissioner for Industrial Competitiveness and Small and Medium-sized Enterprises at the Ministry of Industry; Xavier Ribera, Director of Communications, Institutional Relations and Sustainability at BASF Spain and Portugal; Carolina Gregorio, Director of Public Affairs at Dow for the Plastics and Specialty Plastics businesses in Europe, the Middle East and Africa; and Pablo Rupérez Pascualena, Director of European Affairs at LLYC and Associate Professor at the San Pablo-CEU University, with Iñaki Garay, Deputy Director of EXPANSIÓN, acting as moderator.

Núria Aymerich lamented that the plastics sector has been demonised despite its essential role: “We don’t realise that we need plastic for everything”, which is why it is imperative to “restore the industry’s reputation”, highlighting just how necessary and strategic it is for many other sectors. Furthermore, in the case of Spain, this is a sector where 98% of the value chain consists of SMEs; public institutions must therefore help these SMEs to grow, strengthen themselves and become more competitive, as well as facilitating their operations by speeding up administrative simplification. Xavier Ribera highlighted the sector’s importance for the desired European strategic autonomy. ‘Europe cannot be a continent with strategic autonomy if it abandons the materials industry,’ he stated, before recalling how the chemical industry’s value chain creates an entire ecosystem around it.

3,000 COMPANIES. Over the past two years, more than 3,000 companies and 35,000 jobs have been lost across the European plastics value chain.

Disadvantages

But first and foremost, what factors account for this downward trend in the plastics industry’s share of the European market? According to Alicia Martín, “the plastics sector is facing an unprecedented loss of competitiveness” due to several factors, many of which are common to European industry as a whole: the energy cost disadvantage compared to Asia and the United States, greater regulatory pressure, and industrial policies that are less focused on investment and innovation. She warned that “if Europe loses competitiveness in the plastics industry, this will have repercussions for other essential industries”.

Another debate has also emerged, concerning the sustainability of this industry. On this point, there was consensus among all the speakers: the plastics industry can and wants to be sustainable, but it must also remain competitive. In fact, the sector is committed to a complete transformation towards sustainability, with the aim that by 2050, 65% of the plastics used in Europe will be produced from non-fossil raw materials: biomaterials, recycled materials, carbon molecules… “We see circularity as a lever that will enable us to be competitive,” said Martín.

Carolina Gregorio agreed that “circularity presents a unique opportunity for the strategic autonomy of European industry”, but “if we are the only ones playing by the rules of sustainability, we are creating markets for other regions” that are less committed to the cause. Gregorio called for instrumental policies to drive robust demand for sustainable plastics, such as mandatory targets for plastic use by sector (packaging, automotive, electronics, etc.) or, in the shorter term, mechanisms to stimulate intermediate demand, for example, tax incentives for the use of recycled plastic.

Solutions

As measures to boost competitiveness, Pablo Rupérez proposed reducing energy prices, improving the internal market, cutting red tape, encouraging investment and fostering innovation. We must not forget that internal barriers within the EU currently amount to the equivalent of a 45% internal tariff. And always seeking a balance between competitiveness and sustainability: “It is important that the public and the political class realise that economic growth is necessary to preserve the European model.”. Is there still time to reverse this trend towards deindustrialisation? At Plastics Europe, they believe so, but they are calling for urgent action, particularly regarding regulatory certainty, with a stable, harmonised and predictable framework that encourages investment; the reduction of energy costs and emissions; ensuring fair competition by protecting European producers from unfair trade practices involving imported products and requiring these to meet the same quality standards as European products; generating demand for circular plastics; strengthening the single market and adopting a cross-cutting industrial policy. Only in this way will Europe be able to reverse this negative trend in the plastics industry.

Highlighted statements

Alicia Martin Plastics Europe	Núria Aymerich Ministry of Industry	Xavier Ribera BASF	Carolina Gregrorio Dow	Pablo Rupérez LLYC
“If Europe loses its competitive edge in the plastics industry, it will have repercussions for other key industries.”	“We must raise the profile of this industry, highlighting just how vital it is to so many other sectors.”	“Europe cannot be a continent with strategic autonomy if it abandons the materials industry.”	“If only Europeans play by the rules of sustainability, we are creating markets for other regions.”	“It is important to realise that economic growth is necessary to preserve the European model.”