Why Europe’s recycled-plastics industry is facing challenges

Plastic is often at the centre of sustainability conversations. But according to Matthijs, the challenge isn’t the material itself. It’s keeping it in use.

“Plastic is an incredibly useful material,” he says. “The challenge is making sure it stays in the loop.”

From waste to resource

For many of us, recycling ends when we put a bottle in the bin. In reality, that’s where its next life begins.

Through sorting, cleaning and processing, used plastic bottles can be transformed into high-quality recycled material that can be used again. In some cases, yesterday’s household packaging waste can be turned into something worth keeping, like the HÅLLBAR trash bin.

“The goal is simple,” says Matthijs. “Keep valuable materials in circulation for as long as possible.”

Why recycling alone isn’t enough

Despite advances in recycling technology, many recyclers face a different challenge: demand.

Recycled plastics often struggle to compete with cheaper imported virgin materials, reducing demand and limiting the industry’s ability to invest and grow. Yet industry growth is critical to expanding recycling capacity and accelerating the transition to a circular plastics economy.

“If we want a circular economy, collection and recycling alone are not enough,” Matthijs says. “We also need demand for recycled materials.”

Upcoming European legislation is expected to increase requirements for recycled content in products and packaging, helping create stronger markets for recycled materials, but it is still some time away.

Working together for circularity

For Matthijs, building a circular economy requires collaboration across the value chain, from recyclers and manufacturers to policymakers and consumers.

Partnerships play an important role. Through its investment in Morssinkhof Rymoplast, Ingka Investments supports the development of recycling capacity and circular material solutions. The company also works with IKEA to help bring recycled materials into our range of HÅLLBAR waste bins used by many people every day.

Looking ahead

While challenges remain, Matthijs is optimistic.

“The criticism of plastic waste has helped push the industry forward,” he says.

His message is simple: the technology exists. Now the focus must be on creating the systems, partnerships and demand needed to keep valuable materials in circulation.

Listen to the latest episode of Screw IT to hear Matthijs share his perspective on plastics, recycling and the opportunities ahead for a more circular future.

Screw It – Episode 18 – Full Conversation Transcript

Katarina: Welcome to Screw It. In today’s episode, we’re talking about plastics: what they are, where they go, and whether they are as bad as we think. I’m talking to Matthijs Veerman from Morssinkhof Rymoplast. Enjoy the episode! Thank you so much for joining me. We’re going to talk about plastic today. Before we get into your role at Morssinkhof Rymoplast, as consumers we constantly see plastics in the news. We see plastic in the ocean and hear about microplastics. First of all, what is plastic, and is it as bad as we think it is? 

Matthijs: Plastic is a great raw material. I realise that is what you would expect someone in the plastics industry to say, but it is an extremely versatile material. It can help support sustainability goals by making products lighter and thinner. For example, an electric car could not function without plastics; otherwise, it would be far too heavy. In packaging, plastics protect food and other products. They make products available in smaller volumes, which can help avoid food waste. So there are certainly many positive aspects to plastics. The challenge is that plastic is not one material. It is dozens of different materials grouped under the word “plastic”. That makes recycling relatively complex. You need a recycling process for each material, as well as an outlet where the recycled raw material can be used again. 

Katarina: Morssinkhof Rymoplast recycles plastic materials. Is that right? 

Matthijs: Yes, exactly. 

Katarina: Going back to the beginning, Morssinkhof Rymoplast is quite an innovative, family-owned company. When Gertie Morssinkhof started the company with his brother in the 1960s, what were they doing? 

Matthijs: They started in textile processing. In the 1960s, the textile industry in the Netherlands began to decline and had more or less disappeared by the early 1970s. At the same time, the plastics industry was emerging, supported in part by the government and large oil companies. Company directors from the textile industry moved into plastics. They knew Gertie was a clever engineer who could help solve problems with plastic waste streams. When plastics became scarce and expensive, it became increasingly important not to waste production scraps from the plastics processing industry, but to keep them in circulation as recycled raw material. Gertie’s engineering and creativity were a perfect fit for this new industry. 

Katarina: If I have a plastic bottle in my hand and put it in the recycling bin, what happens to it? Can you talk me through that journey? 

Matthijs: If you are talking about a PET bottle, ideally it is returned through a deposit-return scheme. Then the PET bottle is kept separate from other plastic articles. PET is just one of the many plastic types on the market, so keeping it separate is very helpful. When you return the bottle, the deposit you paid is refunded. The bottle is counted, and it moves through the supply chain. It is sorted by colour, where applicable, and delivered in bales to a recycling company. The process starts by grinding and washing the bottle. This releases the cap and label. They are made from different plastic types: caps and labels ideally float in water, while PET sinks because of its density. That provides a natural way to separate them. The PET then goes through a hot-washing system to remove glue and sugar residue from the beverage that was packaged in the bottle. We extrude it, which means we melt it, and filter it to remove particles with a higher melting point. Then we use a process called solid-state polycondensation. This restores the original chemical and mechanical properties of the PET, as if it were new. The main difference between recycled PET and virgin PET is the colour tint. Bottles made with recycled plastics may have a slightly different tint. 

Katarina: So when I look at bottles in a shop, are the recycled ones slightly darker? 

Matthijs: Usually they have a grey or blue tint, so they are a little darker. If a bottle is perfectly crystal-clear, you can generally conclude that it does not contain recycled plastic. If it looks slightly darker, you can feel reassured that the producer has used recycled plastics in the packaging. Years ago, when we sat with major brand owners, we would put a bottle made from 100% recycled plastics on the table. They would say, “We will never put this on the shelf; no consumer will buy it.” Ten or fifteen years later, consumer acceptance of recycled content and the aesthetic imperfections it can bring is much greater. You still buy a Coca-Cola bottle that may be darker than a perfectly clear private-label bottle made from virgin PET. There is no longer the same negative association. That has also influenced product development at companies such as IKEA. The consumer is not responding negatively to small imperfections, which creates more room for recycled content. 

Katarina: If I am drinking water or soda from a bottle made with recycled PET, how do you make sure contaminants do not end up in my body? 

Matthijs: Recycled PET is similar to virgin PET. The recycling steps include hot washing to remove glues and inks used in the design or production of the bottle. The material also goes through a process at around 280 degrees for approximately 15 hours, which removes volatile substances that could evaporate from the PET. The process is approved for food contact by the European Food Safety Authority and by the Food and Drug Administration in the United States. The material is food-safe and performs in the same way as a bottle made from virgin PET. There is no additional risk in drinking a beverage from a bottle made with recycled PET. 

Katarina: We are seeing more plastics made from alternative materials, such as bio-based materials and sugar cane. How do those materials fit into your recycling processes? 

Matthijs: For a consumer or policymaker, it can sound appealing to make plastic from sugar cane instead of fossil oil. The problem starts when the resulting plastic is different from a traditional plastic type. We recycle polyethylene, polypropylene and PET. Those plastics can also be produced in bio-based versions. If the bio-based material uses the same building blocks as the fossil-based equivalent, it is called a drop-in material and can be recycled in existing mechanical or chemical recycling processes. It becomes complicated when new plastic types are introduced. There may be no infrastructure to collect and recycle them, and they are often used at very small scale. As a result, they can end up in incineration. The intention may be to help the environment, but in practice some initiatives can be worse than using traditional fossil-based plastics that are already recyclable. 

Katarina: What needs to change for those materials to be recycled? 

Matthijs: You need to look at the application. New materials must be collected separately, be suitable for recycling and be recycled back into the original application. Often this is a chicken-and-egg situation: you need scale to establish collection and recycling systems, but you need those systems in place before you can introduce a new plastic type at scale. 

Katarina: It has been a tough year for plastics recycling. In the Netherlands alone, six or seven companies have gone bankrupt in the past year. Why does the situation look like that, and how are you still surviving and thriving? 

Matthijs: We have seen companies go bankrupt across the European plastics recycling industry. Some are start-ups with very limited cash reserves, so they are less able to withstand difficult periods. Others are relatively new companies that saw a market opportunity when legislation was introduced, but may have entered the market too early. There is also a large group that has suffered because demand did not develop as expected. Virgin plastics became very cheap and widely available, much of it produced outside Europe. Recyclers could not compete economically, so brand owners switched back to virgin plastics. When there is no demand, it no longer makes economic sense to recycle, and waste can end up in incineration instead of being turned into recycled raw material. 

Katarina: There is new EU packaging legislation. I am thinking about the rules restricting PFAS in food-contact packaging and the requirements for more recycled content. Are those two things slightly at odds with each other? 

Matthijs: No. If you recycle a PET bottle, you are recycling packaging. If design for recycling is applied properly, new PFAS are not introduced into the recycling stream. When design for recycling is done well, recycled PET does not create a different risk from virgin PET. The legislation you are referring to is the Packaging and Packaging Waste Regulation. It gradually requires more recycled content in packaging, whether that is a PET beverage bottle, a shampoo bottle or the polypropylene cap attached to the bottle. It is extremely important for the European recycling industry and for a circular plastics economy. Without it, Europe would risk losing its plastics recycling industry and relying on other continents for virgin plastics—or for recycled plastics that are not produced in the EU. 

Katarina: So legislation is what is needed to make sure the industry can continue? 

Matthijs: Absolutely. At the moment, geopolitical developments have made fossil-based plastics scarcer and more expensive. Europe is dependent on other regions and is not self-sufficient. If we want to turn the European linear economy into a circular economy for plastics, we need to collect, sort and recycle within Europe—and then use the resulting recycled raw material within the European market. This is where the timing of legislation becomes important. Plastic waste exports to non-EU countries are being restricted, which is positive. But the obligation to use recycled content in the EU does not begin until 2030. That gap between 2026 and 2030 is the period the plastics recycling industry needs to survive. 

Katarina: What needs to happen from a demand perspective? What are you expecting from companies? 

Matthijs: Ideally, major brand owners, retailers and industries such as electronics, automotive and furniture would voluntarily commit to using recycled raw material with a European origin on a continuous basis. Looking at recent history, however, the question is whether that responsibility can be placed entirely on industry. Companies have to compete on price, and their competition is global. If production is more expensive in Europe but it is cheaper to import products from Asia, we cannot blame brand owners or retailers for switching to virgin or imported recycled materials. To put it simply, we need regulation that creates the foundation for a circular economy. It should not only require us to collect, sort and recycle; it should also create demand for recycled material within European industry. That creates a level playing field for European market players. 

Katarina: Are you feeling hopeful? Are you seeing the right legislation come into play? 

Matthijs: Yes. The Packaging and Packaging Waste Regulation is an example. The problem is that it only starts in 2030, so there is a period to bridge. In the meantime, we may lose more recyclers if demand for recycled raw material does not increase voluntarily. Automotive legislation is also expected to follow. The end-of-life vehicle legislation includes explicit targets and obligations to use recycled content in new cars. Other industry sectors will follow. That is the hopeful message for the recycling industry. Within two or three years, we should be able to continue investing in infrastructure. Before then, investment is more difficult because the legislation is not yet applicable.  

Katarina: So you would describe the coming years as tricky times for plastics recycling? 

Matthijs: Yes, depending also on the wider geopolitical picture. This year has been a clear example of how geopolitical issues affect industries. At the end of February, it was one of the most difficult periods for plastics recycling, with little hope of improvement. Then the Middle East crisis caused oil prices and virgin plastic prices to rise, and suddenly there was a business case for plastics recycling. 

Katarina: So legislation is a major part of what needs to be in place. Are there other things that matter? 

Matthijs: Until legislation creates an obligation, we are largely dependent on voluntary initiatives by brands and retailers that use recycled raw material. Part of the reason we are still here is that we have the right mix of activities. We work with multiple plastic types and in multiple areas of plastics recycling. In some areas, we can still compete with virgin plastics on quality and processing costs, even when virgin plastics are very cheap. That provides a base for the company. To prepare for new legislation and higher-end applications such as cars and consumer packaging, we also need more intensive and longer recycling processes. Those processes have a cost, often higher than producing virgin plastic from oil. Being active in both areas helps us find the right balance and survive difficult periods. 

Katarina: You work with IKEA, and Ingka Investments has invested in your company because it sees strong potential. You also work with IKEA Retail to create products from recycled materials. What does that relationship look like? 

Matthijs: We have two connections with IKEA. One is Ingka Investments, which is connected to the retail business. That is a financial investment for a good cause, helping offset the consumption of plastics by IKEA. We are extremely happy to have Ingka as a long-term investor. It is not a private-equity company seeking short-term advantages and then putting the company up for sale. We appreciate the long-term view and the capabilities it gives us to invest when the time is right. The other connection is with IKEA Procurement and Development. That is a customer–supplier relationship at arm’s length. We compete with other plastics recyclers and try to get our raw materials into IKEA products. 

Katarina: One example is the HÅLLBAR waste bin. Is it made with 50% recycled material? 

Matthijs: It contains more than that, but at least 50% is post-consumer recycled raw material. In plastics recycling, post-industrial material means production scraps from the plastics processing industry. Post-consumer material means articles that have gone through their life cycle and are then recycled. HÅLLBAR is notable because it contains such a high level of post-consumer recycled content. It is produced at a facility we built specifically at IKEA’s request about ten years ago. The facility upgrades post-consumer household packaging into colour-sorted, high-end, odourless and spotless recycled raw material that can be used in IKEA products. 

Katarina: There are many new products that can be developed with recycled plastics. What does innovation look like, and what do you see as the future? 

Matthijs: The legislation coming into effect across multiple sectors is helpful because it creates new demand. Companies are always competing with direct competitors in their geographical area and with competition from outside it. That can influence the choice between virgin and recycled plastic for cost reasons, which is understandable. Based on upcoming legislation, we are already seeing demand from the automotive industry. They are preparing for their obligations, which are expected to start around 2032. Other industries will follow. Extended producer responsibility schemes are also important. Industry sectors come together—or are required to come together—to solve what happens to products and packaging at the end of their life. They help ensure that the resulting recycled raw material is used again. The combination of legislation, voluntary initiatives and extended producer responsibility is where new demand and new development begin. 

Katarina: From a planetary health perspective, are you feeling hopeful? What does the future look like? 

Matthijs: I think the plastics industry was too slow over the last few decades to respond to criticism, and that criticism is valid. We see the problems of plastic pollution and plastic soup. From that perspective, the criticism has been healthy and has helped us take steps in the right direction. At the same time, some criticism focuses on geographical areas that are underperforming in waste collection. When we talk about plastic soup and where it comes from, it is predominantly linked to a number of Asian countries without formal waste-management infrastructure. 

Katarina: For people who are not familiar with the term, what is plastic soup? 

Matthijs: It refers to areas of floating plastic in the ocean. It is extremely harmful to the environment—and, in a sense, also harmful to the plastics industry and to a material that can be valuable when it is managed properly. In some countries, a lack of financial resources makes it difficult to create formal infrastructure to collect, sort and recycle waste. Extended producer responsibility can play an important role. When you put something on the market and are made responsible for giving it a purpose at the end of its life, then, theoretically, problems such as plastic soup should not still exist in ten, twenty or thirty years—or hopefully even sooner. 

Katarina: Thank you so much for joining me. It has been really interesting. 

Matthijs: Thank you for taking the time. It was an interesting conversation.