London, United Kingdom (PRWEB) July 04, 2012
The recycling rate is climbing and the volume of recyclable material sorted and sold is growing. According to IBISWorld industry analyst Nick Sallmann, “a raft of government policies to divert waste from landfill is underpinning an increase in the collection of recyclables and investment in sorting capacity”. Moreover, public contribution to recycling efforts continues to grow, providing impetus for growth. Paper, plastic, glass and metal are the main materials sorted and then sold on global and domestic markets. Firms sorting non-metal material generate about 23% of revenue in the Sorted Material Recovery industry. This includes firms operating material recycling facilities (MRFs). Operators involved in the sorting of scrap metal generate the bulk of revenue. After consecutive years of strong recyclable material price increases, the industry suffered a setback in 2008-09 as prices plunged due to the onset of the financial crisis. The volume of commercial and industrial waste generated also fell, reducing MRF gate fees.
Sorted Material Recovery industry revenue declined by an estimated 27.6% in 2008-09. In 2009-10, recyclable material prices rebounded and the industry returned to strong growth of 28.4%. The strong volatility translates into a rather moderate growth of 4.4% per annum over the five years to 2012-13. However, revenue will far outperform the average of the past five year in 2012-13, jumping 10.8% to total £8.65 million. Sallmann adds, “over the five years through 2017-18, industry growth will be supported by greater volumes of recyclable materials sent for sorting, particularly by commerce and industry, and revenue is expected to increase strongly”.
The industry has a number of large, integrated waste management companies. The largest operators in waste management in the United Kingdom are Veolia, Sita UK and Biffa Group. The Sorted Material Recovery industry is rapidly expanding capacity, ensuring that the largest companies' dominance is restricted. The top four operators in this market are estimated to hold a market share of 38% which gives the industry a low level of market share concentration.
For more information on the Sorted Material Recovery industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry comprises firms involved in the sorting and recovery of recyclable material such as metal, paper, plastic and glass from waste. It includes the operation of materials recovery facilities (MRFs) and sorting of scrap metal.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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