Trash into treasure: As demand for recycling services increases, industry revenue grows

The Recycling Facilities industry has experienced mixed results over the past five years to 2018, with revenue projected to slightly increase. Strong demand for recycling services can primarily be attributed to increasing public environmental consciousness. With concerns rising over the environmental effects and threats to public health that landfills present, state and local government funding for recycling services, an alternative to landfills, has increased. However, revenue has been constrained over the past five years due to a decrease in commodity prices. Although the market for recycled commodities is still relatively new, the sale of recycled materials has grown...purchase to read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 13-18
0.1%
Forecast Growth 18-23
Profit
Employment
22,931
Businesses
1,560

Industry Threats & Opportunities

  • Large companies will also expand their industry operations, providing recycling facility services for major cities
  • While small companies still comprise the majority of industry operators, larger companies are expanding their influence
  • The amount of waste generated nationally is expected to continue to grow
  • Industry Report - Industry Analysis Chapter

    Rising environmental consciousness has led to the expansion of recycling programs throughout the country, helping to gradually increase the Recycling Facilities industry’s revenue. The industry’s modest performance during the period is a result of industry revenue contracting due to falling oil prices. When the price of crude oil declines, the cost of producing plastic decreases, depressing commodity prices and reducing demand for recycled materials. As a result, industry revenue is projected to slightly increase at an annualized rate of 0.1% to $6.0 billion over the five years to 2018, including 3.4% growth in 2018 alone. This gradual increase represents an aberration in the long-run expansion of the industry and industry revenue is expected to increase at a faster rate moving forward...purchase to read more.

    Additional Insights for the Recycling Facilities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Recycling Facilities Industry are

  • Ability to attract local support/patronage
  • Having an extensive distribution/collection network
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as Demand from recyclable material wholesaling and Population in the Recycling Facilities industry impact industry performance..

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    What's in this report

    What is the Recycling Facilities Industry?

    This industry operates recycling facilities, which separate and sort recyclable materials such as paper, plastic and glass from waste streams. Operators also sort commingled recyclable materials into distinct categories, as well as refine goods into recycled commodities (i.e. convert plastic bottles into raw plastic) and sell recycled materials to manufacturers and wholesalers. This industry does not include government bodies that directly provide these services to the public.

    Industry Products
  • Recyclable material recovery and processing
  • Sale of recycled materials
  • Recyclables collection services
  • Industry Activities
  • Operating facilities for separating and sorting recyclable materials from nonhazardous waste streams
  • Operating facilities where commingled recyclable materials are sorted into distinct categories
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from recyclable material wholesaling
  • Population
  • Price of paper
  • Price of plastic materials and resin
  • Regulation for the Waste Treatment and Disposal Services sector
  • World price of crude oil

  • Current Performance
  • Environmental consciousness generates growth
  • Volatile recycled material sales
  • Expansion of larger companies
  • Volatile profit margins
  • Chart: Revenue Growth

  • Industry Outlook
  • Increased waste
  • Expansion of recycling programs
  • Sales of recycled materials
  • Profit
  • Table: Recycling Facilities Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Recycling Facilities Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Paper Mills
  • Cardboard Box & Container Manufacturing
  • Plastic & Resin Manufacturing
  • Plastic Pipe & Parts Manufacturing
  • Plastic Bottle Manufacturing
  • Glass Product Manufacturing
  • Metal Can & Container Manufacturing

  • Key Selling Industries
  • Industrial Machinery & Equipment Wholesaling
  • Waste Collection Services
  • Waste Treatment & Disposal Services

  • Products & Services
  • Sale of recycled materials
  • Recyclable material recovery and processing
  • Other
  • Recyclables collection services
  • Chart: Recycling Facilities Industry Products and Services Segmentation

  • Demand Determinants
  • Environmental consciousness
  • Economic growth and waste production
  • Paper, plastic and other commodity prices

  • Major Markets
  • Commercial businesses
  • Industrial businesses
  • Nonprofit organizations and individuals
  • State and local governments
  • Chart: Major Market Segmentation for the Recycling Facilities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and utilities, depreciation and marketing
  • License, insurance, administrative and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Recycling Facilities

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Recycling Facilities Industry

  • Industry Globalization
    Waste Management Inc., Republic Services Inc.,
  • Table: Waste Management Inc. - financial performance
  • Table: Republic Services Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Recycling Facilities Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Recycling Facilities Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • World price of crude oil (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Deposit-Refund System
  • A system in which bottles purchased from retailers come attached with an added deposit cost. Consumers can return these bottles to recycling facilities to redeem this cost.
  • Eddy Current
  • Electric currents that create magnetic fields. Used to pull metal objects off of conveyor belts during the sorting of recyclable materials.
  • Inorganic Municipal Solid Waste
  • Municipal solid waste, excluding food waste, yard trimmings and other organic wastes.
  • Material Recovery Facility
  • A specialized plant that receives, separates and prepares recyclable materials for further processing or sale to downstream wholesalers and manufacturers.
  • Municipal Solid Waste (Msw)
  • Non-hazardous waste produced by households and commercial and retail operations.
  • Processing Facility
  • A facility where separated recyclable materials received from a material recovery facility are broken down and reformed into commodities that can be used as inputs in the production of new goods.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Recycling Facilities Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Recycling Facilities:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Recycling Facilities market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Recycling Facilities, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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