The Plastics Recycling Paradox: Why the Business Model Is So Hard

Plastic recycling sits at the heart of the circular economy — yet across the UK and Europe many recyclers are struggling to survive. If recycling is such a critical part of the system, why is the business model so difficult to sustain? In this episode, we’re joined by Richard Hudson from the CIWM and Adam Herriott from WRAP to explore the realities facing plastics recyclers today. From volatile material markets and rising operational costs to the complex policy landscape shaping the sector, we unpack what it actually takes to run a plastics recycling business. Together we examine the plastics waste market in the UK and Europe, why so many recyclers are struggling, and what separates the companies that succeed from those that fail. We also discuss the role of policy — from Extended Producer Responsibility and waste exports to whether governments should be doing more to support domestic recycling infrastructure. Looking ahead, we ask whether the UK Emissions Trading Scheme could shift the economics in favour of recycling — or whether market forces will simply drive a move away from plastics altogether. It’s a candid look at the paradox at the centre of plastics recycling — and what it will take to build a system that truly works. ♻️