Plastic Product Manufacturing in European Union: Market Size, Businesses & Forecast 2026

The plastic product manufacturing industry in the European Union encompasses the conversion of plastic resins into intermediate or final products such as packaging, sheets, tubes, and builders' ware. The sector is currently facing a significant structural transition and competitiveness challenges due to high energy costs and shifting global supply dynamics. Official data from trade body Plastics Europe reveals that total EU plastics industry turnover reached approximately EUR 398 billion in 2024, representing a 13% decline from 2022 levels. The sector's global relevance is under pressure, as the European share of global plastics production collapsed from 22% in 2006 to just 12% in 2024.

Industry snapshot

Key public data points

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What does the Plastic Product Manufacturing in European Union industry cover?

The industry comprises enterprises primarily engaged in processing new or recycled plastic resins into diversified intermediate or final functional items. These production processes typically deploy specialized technical methods including injection moulding, extrusion, blow moulding, compression moulding, and casting. The output is highly diverse, spanning primary custom configurations to standardized industrial components distributed across downstream sectors.

• •Classified under division 22.2 of the European NACE system.
• •Covers four distinct sub-sectors: plates/sheets/tubes (C22.21), packaging goods (C22.22), builders' ware (C22.23), and other plastic products (C22.29).
• •Includes the transformation of both conventional fossil-based polymers and newer circular or bio-based resins.

Who operates in the industry and how is it structured?

The European market is structurally characterized by a high concentration of small and medium-sized enterprises alongside prominent multinational converters. While thousands of smaller operators serve local or regional niche markets, macroeconomic pressures have led to consolidation and business exits. Geographically, Germany and France remain key operational hubs for value addition and employment within the broader European manufacturing landscape.

• •The wider European plastics sector comprised approximately 50,650 operating companies in 2024.
• •Roughly 3,000 companies in the sector stopped operating between 2022 and 2024 due to intense cost constraints.
• •Total employment in the European plastics industry stood at around 1.5 million people in 2024, suffering a loss of approximately 35,000 jobs since 2022.

What drives demand in the industry?

Demand for manufactured plastic items is strongly linked to the performance of major downstream consumer and industrial sectors. Food and beverage packaging remains a primary consumption driver, requiring constant innovation in barrier properties and material reduction. Furthermore, European automotive manufacturing and structural building applications heavily dictate the demand volumes for lightweight high-performance components.

• •Packaging applications traditionally represent the largest single end-use segment for converted plastics.
• •Automotive lightweighting initiatives drive the deployment of specialized polymer components to reduce carbon emissions.
• •Construction and building infrastructure demand relies on plastic profiles, insulation materials, and pipe systems.

Who are the notable companies in the industry?

The industry features intense competition between European entities and low-cost international manufacturers, particularly from Asia and North America. Large public and multinational corporations maintain extensive conversion facilities across the EU to optimize localized supply chains for automotive and packaging clients. Profitability is heavily dependent on technical differentiation, scale, and access to cost-competitive raw feedstocks.

• •ALPLA Werke Alwin Lehner GmbH & Co KG operates massive packaging and bottle manufacturing networks throughout the EU.
• •Amcor PLC maintains a substantial manufacturing footprint within the EU supplying flexible and rigid packaging solutions.
• •Berry Global Inc. runs multiple specialized plastic product conversion and nonwoven plants across EU member states.
• •Pipelife International GmbH, a subsidiary of Wienerberger AG, acts as a major regional manufacturer of plastic pipe systems.

What are the recent trends and outlook?

The industry is experiencing a prolonged contraction in its global export standing and production volumes. Local production volumes stabilized marginally in 2024, but this follows a severe contraction in previous years driven by high energy costs and feedstock differentials. Concurrently, the transition toward a circular economy has shown signs of stagnation as investments face economic headwinds.

• •European plastics production experienced a modest stabilization of +0.4% in 2024, following a sharp contraction of -7.6% in 2023.
• •Total European circular plastics production, including mechanical recycling and bio-based polymers, remained flat at 8.4 million tonnes in 2024.
• •The EU sustained a negative trade balance for plastic products in 2024, reaching a net import level of -1.4 million tonnes.

How is the industry regulated?

European plastic converters operate under some of the world's most stringent environmental and material safety frameworks. Regulatory pressure is accelerating the mandatory incorporation of recycled content into new product designs, completely reshaping manufacturing requirements. Compliance mandates dictate strict limitations on hazardous chemicals and single-use formats to minimize environmental leakage.

• •Manufacturers must comply with the EU NACE C22.2 technical guidelines and European Commission eco-design criteria.
• •The EU Single-Use Plastics Directive imposes bans and reduction mandates on targeted consumer product categories.
• •Stricter EU borders and proposed trade observatories are being advocated by trade bodies to enforce regulatory parity on imported products.

Government, statistical and trade sources used for this Claight analysis.

• Plastics Europe Plastics the Fast Facts 2025 ·
• Eurostat NACE Rev. 2 Statistical Classification