Europe’s Plastics Recycling Sector: M&A Activity Remained Muted in 2024
The European plastics recycling sector witnessed its lowest M&A activity since 2020, with just 7 disclosed transactions in 2024 — a significant decline from previous years.
The downturn reflects deeper industry challenges: suppressed demand, rising operational costs, and delayed regulatory triggers. Larger recyclers opted for portfolio optimisation and plant closures instead of acquisitions. Companies like Veolia and Repeats Group scaled back by shutting facilities, while others, like Cedo, pursued lower-cost geographies such as Lithuania and Vietnam.
Key trends include:
A “wait and watch” approach among buyers.
Increased plant closures, especially for older and less economical assets.
A shift in deal activity toward South and Eastern Europe.
Minimal private equity involvement, with only one notable PE-backed deal in the UK.
Buyers focusing more on organic growth and strategic resilience.
Despite the quiet year, companies with strong feedstock access and scalable operations continue to attract strategic interest. A genuine M&A revival is expected only if market conditions improve and policy support materializes — with 2026 being a potential inflection point aligned with PPWR enforcement.
