WASTE RECYCLING SERVICES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Waste Recycling Services Market Size and Trends

Global waste recycling services market is estimated to be valued at USD 65.38 Bn in 2024 and is expected to reach USD 93.24 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.

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The global waste recycling services market continues to grow due to rapid urbanization, increasing environmental concerns, stringent regulations regarding waste management, and rising awareness about the benefits of recycling waste. The market trend suggests significant growth opportunities over the coming years. Key drivers of this market include policies and initiatives by governments worldwide to promote sustainable waste practices and recycling. Growing consumer demand for recycled products is another major trend in this space. Moreover, leading companies are investing heavily in research & development to advance recycling technologies and make recycling processes more efficient and cost-effective. Adoption of novel techniques like mechanical sorting is also gaining traction. However, lack of public participation and low recycling rates in some regions continue to restrain the market growth to some extent.

Rising concerns for environmental protection

With growing awareness about climate change and its harmful effects, people are increasingly concerned about protecting the environment. The send waste to landfills is harming the environment as it produces methane gas which is a potent greenhouse gas. Recycling helps reduce the waste going to landfills and prevents harmful greenhouse emissions. It also helps in conserving natural resources as recycling aluminum, paper, plastic, and glass requires much less energy compared to extracting raw materials from nature. Many communities and cities have adopted strong recycling programs and policies to boost recycling rates and decrease waste. Strict regulations are being imposed on waste disposal practices and many places now mandate separating of recyclables from general trash. Growing environmental consciousness is driving many industrial and commercial organizations to focus on minimizing waste and adopt recycling and reuse practices. As recycling is seen as a responsible way to reduce carbon footprint, its demand is rising across both the residential and commercial sectors.

Market Concentration and Competitive Landscape

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Influence of circular economy

The concept of circular economy is gaining global importance for optimizing resource use and minimizing waste. It promotes extending the life of products, parts, and materials through repair, reuse, refurbishment, and remanufacturing. Many countries have strategic plans to transition from linear to circular models of production and consumption. Recycling plays a crucial role in circular economy approaches as it feeds the supply of secondary raw materials back into the production system. Closed loop recycling allows resources to be retained within the economy for longer. Organizations are also recognizing the business opportunities in circular business models centered around recycling, re-use, and remanufacturing. Government policies in the European Union encourage circular economy practices through extended producer responsibility regulations. This is fueling investments in advanced recycling infrastructure and technologies. As circular economy gains wider acceptance, it will further augment the demand for efficient recycling services from industries and consumers. Sustainable waste management through maximized recycling will be essential for transitioning economies to circularity.

Key Takeaways from Analyst:

The waste recycling services market continues to grow due to increasing environmental awareness among consumers and regulatory pushes for higher recycling rates. Growing volumes of industrial and municipal waste also present opportunities for recycling service providers to scale up operations.

Inconsistent waste collection practices and low separation of reusable items remain challenges to higher recovery rates. The market sees potential in residential curbside programs, making recycling more convenient.

Long term contracts with municipal clients provide revenue stability but high capital costs of machinery deter new entrants. Consolidation of recycling facilities leads to better economies of scale but transportation of mixed materials across wider areas raises operational expenses. Technology improvements in materials recovery facilities can boost throughput. The demand for recycled content from consumer brands motivates higher post-collection sorting.

Market Challenges: High operational costs

High operational costs associated with waste recycling services are a major challenge impacting the growth of the waste recycling market. Recycling waste comes with considerable expenses related to sorting, processing, and transporting different types of recycled materials. The activities involved such as sorting waste into various categories like paper, plastic, metal, etc. require large warehouse space and manpower. The equipment and machinery needed to mechanically or manually separate recyclable items from non-recyclable waste also entail substantive capital expenditure. Additionally, transporting recycled materials over long distances to processing or end-user manufacturing facilities further adds to the distribution costs.

Market Opportunities: Private sector participation

Private sector participation can bring immense opportunities for growth in the waste recycling services market. With increasing environmental consciousness among citizens and corporates, there is a huge scope to implement scientific processing and recycling practices for wastes that are currently dumped in landfills. Participation of private companies will infuse fresh ideas, innovation, and efficient mechanisms to collect, segregate, and process municipal solid wastes in an environmentally compliant manner.  Advanced recycling technologies for different kinds of wastes like plastic, e-waste, batteries, construction debris, etc. can be deployed on a large scale through PPP models. This will facilitate higher waste recovery rates and promote the circular economy principle of recovering resources from wastes. Private companies have the capability for investments in mechanized systems, setting up of material recovery and processing facilities near waste sources. They can collaborate with urban local bodies to establish well-organized waste supply chains right from neighborhood-level segregation and transportation to final recycling/conversion of wastes into by-products.

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Insights by Product type: Paper and Paperboard Dominate Recycling Due to Abundance and Value

Of all recycled commodities, paper and paperboard fiber have long represented the largest portion by weight with 40.2% share in 2024. The paper industry relies heavily on post-consumer fiber to supply manufacturing needs. Recovered paper from offices, schools, and homes supplies around one third of all raw material used in paper production. The fiber from discarded printing paper, packaging, and cardboard is highly valued by mills.

Paper fiber retains its quality through multiple recycling cycles, allowing repeated use. This sustainability ensures a long-term, stable demand for collected paper. Compared to lower-value materials like mixed plastics, fiber prices bring higher returns to offset collection and processing costs. A robust global marketplace also exists across Asia Pacific, Europe, and North America for prime paper grades. Export markets help absorb seasonal or regional surpluses. Consumer paper goods like packaging, catalogs, and office papers see high discard rates due to their intended short use-cycle. This affordability and intended disposability results in an abundance of paper and fiber in the municipal waste stream. Paper is also among the easiest recyclables for residents to collect and sort compared to materials like plastic film or small metal containers. These factors combine to maintain paper among the most prevalent recovered materials.

Insights by application: Municipalities Remain the Primary Driver of Volume in Waste Recycling Services

Municipal waste represents the largest source of material collected for recycling by waste management companies with 34.5% share in 2024. Cities and local governments have significant influence over recycling programs and policies within their jurisdictions. As more municipalities implement or expand recycling mandates, it steadily increases the recycling tonnage that must be processed. This steady rise in mandated municipal volumes helps assure waste handlers of basic volume levels year after year. Recycling has become an expectation among residents in many communities. Cities recognize recycling programs appeal to environmentally-conscious citizens and demonstrate their commitment to sustainability. Expanding services allows municipalities to tout improved diversion rates and recycling participation levels. Assuring constituents that their recycling has value encourages continuing support. Larger mandatory recycling programs increase the public profile of recycling within a community as well.

Municipal managers appreciate recycling as it provides an alternative to disposal costs. By diligently collecting recyclables, cities keep valuable materials out of landfills and waste-to-energy plants, preserving disposal capacity. Recycling infrastructure like materials recovery facilities allow municipalities affordable alternatives to exporting waste or constructing new disposal infrastructure. Waste management vendors work closely with cities to design programs maximizing diversion within budget. This partnership approach drives continual optimization that benefits both municipalities and their recycling contractors.

Regional Insights

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The North America region represents the largest and most lucrative market for waste recycling services globally. The region is expected to account for 41.3% of the market share in 2024. With a highly developed waste management infrastructure and stringent environmental regulations, recycling has become a common practice among both the commercial and residential sectors. Major recycling hubs have emerged in states like California, Pennsylvania, and New York in the U.S.. Leading cities such as New York and Los Angeles generate huge volumes of recyclable waste on a daily basis. Proximity to recycling end markets enables quicker turnaround times for recyclers. Strong domestic demand for recycled materials like paper, plastic, and glass has also boosted recycling rates over the years. Presence of key industry participants such as Waste Management and Republic Services in the country ensures a steady stream of waste collection and processing across cities and towns. Strict landfill diversion targets prescribed by the EPA have further augmented the recycling business landscape.

The Asia Pacific region, especially emerging economies of India, China, Vietnam and Indonesia, is expected to witness the fastest gains in waste recycling activity in the coming years. Rapid urbanization, growth of manufacturing industries and rising consumption levels are primary drivers for the volumes of post-consumer and industrial waste being generated on a daily basis. Underdeveloped domestic waste management infrastructure in the region translates to untapped opportunities for private recyclers. Governments are now focusing on strengthening recycling policies and have invited foreign partnerships and investments to bolster recycling infrastructure from collection to processed material sales. The availability of affordable labor also makes the region attractive for setting up mid- and down-stream recycling facilities. As environmental standards get tighter and circular economy gains more policy push, Asia Pacific will evolve as a major secondary processing and manufacturing hub for recycled commodities. Countries with existing recycling expertise like Japan can play a pivotal advisory and technology transfer role to foster development.

Market Report Scope

Key Developments

• In March 2024, Recyclekaro is set to launch India's first plasma furnace, elevating e-waste
• In January 2023, Xerox announced the acquisition of Advanced UK, a hardware and managed print services provider based in the U.K. Advanced UK had been a long-standing Platinum partner of Xerox, providing sales and support for Xerox products and services.
• In January 2023, Covanta, a leading sustainable waste and energy solutions company, announced the acquisition of a Massachusetts-based, Global Cycle and Global Remediation Services. This strategic move is aimed to expand Covanta's presence in the highly regulated New England market, a key region for the company's growth.
• In 2023, BPCL launched the E-Waste Management Initiative to further strengthen sustainable development goals

*Definition: Global waste recycling services market provides collection, transportation and processing of numerous recyclable materials produced by residential and commercial sources. It offers services like curbside collection of paper, plastic, glass and metals from households and businesses. The collected materials are then sorted and processed to manufacture new recycled products. The market helps reduce landfill disposal, saves natural resources and provides recycled commodities for manufacturing industries. It plays a vital role in pursuing sustainable waste management practices.

Market Segmentation

• Product Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Metals
  • Paper & Paperboard
  • Plastics
  • Glass
  • Food
  • Others
•  Application  Insights (Revenue, USD Bn, 2019 - 2031)
  • Municipal
  • Industrial
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Eurokey Recycling, Ltd.
  • Northstar Recycling
  • Triple M Metal LP
  • Amdahl Corp.
  • Interface, Inc.
  • Covanta
  • Epson, Inc.
  • Collins & Aikman
  • Xerox Corp.
  • Fetzer Vineyards
  • Biffa
  • Saahas Waste Management Private Limited
  • Green IT Recycling Center Pvt Ltd.
  • Attero
  • Synergy Waste Management Pvt. Ltd.
  • Eco-Wise Waste Management Pvt. Ltd.
  • Recykal