The European recycled high-density polyethylene (rHDPE) market is experiencing a significant and lasting shift. Data from the first quarter of 2026 indicates that current price developments are not temporary, but reflect a structural change driven by regulation, cost factors and policy direction.

- Q1 2026 Market Overview

Average price: €1,250 per tonne | +8% versus previous quarter
Total demand: 320,000 tonnes | +5%
Available supply: 185,000 tonnes | stable
Recycling rate: 47% | up from 45% in Q4 2025
Import volume: 40,000 tonnes | −10%

- What Is Driving the Change?
Several underlying factors are contributing to a sustained higher price level:
Policy focus on regional supply – EU initiatives are strengthening local value chains.
Increasing compliance costs – stricter environmental and recycling standards.
Elevated energy prices – affecting both production and recycling operations.
Growing traceability requirements – full transparency across the supply chain is becoming a necessity.
Together, these elements are resetting the cost base for rHDPE in Europe.

- Main End-Use Segments
The largest applications remain packaging, construction and automotive, where demand for sustainable material solutions continues to grow.

- Implications for the Industry
For processors and compounders, the question is no longer whether prices will rise, but how to maintain profitability in a tightening regulatory environment. Key steps include:
Reviewing and adapting sourcing strategies.
Investing in process and material efficiency.
Building robust compliance and traceability systems.
Aligning business strategy with sustainability goals.

- Looking Ahead
With the ongoing implementation of the European Green Deal, the rHDPE market is expected to remain under pressure from higher standards and costs. Companies that anticipate these changes and adjust their operations accordingly will be better positioned for the future.
In the latest edition of “The rHDPE Market in Europe”, we examine the Q1 figures in detail and outline what they mean for market participants. The era of higher costs and tighter regulation has begun – preparation and strategic adaptation will be essential.

Based on data from “The rHDPE Market in Europe” Q1 2026 report.
Relevant for: packaging, construction, automotive, recycling and chemical sectors.
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