EU packaging regulations spur China’s push for recycled plastics exports

CHINA – As the European Union enforces stricter rules under the Packaging and Packaging Waste Regulation, Chinese manufacturers face a clear call to action. 

According to a joint report by the UK-based Independent Commodity Intelligence Services and China’s Petroleum and Chemical Industry Federation, the EU’s push for circularity will create fresh demand for recycled polyethylene, polypropylene, and polyethylene terephthalate. 

These materials must make up a growing share in packaging, automotive parts, and fibers sold in Europe.

The regulation requires EU producers to incorporate 5.4 million metric tons of these recycled plastics annually through 2030.

Demand is set to double to 11.5 million metric tons per year after that, running until 2040. 

For China, a key exporter to the bloc, this translates to supplying over 1 million metric tons of recycled content yearly by 2040 to keep goods flowing into European markets. 

The report points out that while this volume seems modest against China’s vast production scale, it will reshape export practices in tangible ways.

Helen McGeough, global analyst team lead for plastics recycling at ICIS, stated, “This study shows that EU circularity regulation is no longer just a regional policy. It’s becoming a global market force, shaping industrial strategies and supply chains worldwide.” 

She added that China’s early moves could help close the divide between its homegrown standards and those abroad, speeding up shifts toward reusable systems everywhere.

Exporters will need to redesign products for easier recycling, secure certifications, and verify performance to comply. 

In the short term, these steps may raise costs as firms adapt to varying rules across markets.

The report suggests that standardizing EU-level packaging for all exports could cut expenses over time compared to creating separate versions for each buyer. 

Since China’s 2018 ban on plastic waste imports, differences in recycling frameworks between the two regions have grown. 

Investments now in domestic facilities could narrow that gap and open doors to new partnerships.

The rules tie closely to recycling capacity. Mechanical methods alone won’t suffice for food-grade or high-performance needs, so chemical recycling stands out as essential for polyolefins. 

EU firms have started using these advanced processes; for instance, OMV opened a chemical recycling plant in Austria earlier this year, while Südpack, BASF, and Werz introduced meat packaging from chemically recycled sources.

In a related development, Henkel recently opened its RecycLab facility in China to test adhesives that enhance recycling efficiency in packaging. 

This initiative aims to support local producers in meeting global standards, including those from the EU. 

Overall, the report frames compliance as a pathway for Chinese recyclers to gain ground as top suppliers, with potential to influence wider industry changes through targeted collaborations.

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