Results from the annual Association for Organics Recycling survey has shown a nine per cent increase in recycled organics.
The 2007/08 report, put together by AFOR and the Waste & Resources Action Programme, showed 4.5 million tonnes of source segregated waste was composted in the UK with half of this sold on and industry reporting turnover of more than £165m in the year to April 2008.
The survey went on to predict that the future of the organics recycling industry is to increase in future as UK capacity is expected to expand to 6.3 million tonnes over the next five years.
WRAP director of retail and organics Dr Richard Swannell said: The composting industry has experienced phenomenal growth and this will continue as food waste collections take off.
Our research shows that compost producers are well placed to meet the growing demand for food waste processing. The drive to produce quality outputs, shown in the survey, will be key to the development of the industry in future.
Confidence in the market is being driven by increases in local authority food waste collections, while 85 per cent of all material composted is garden waste.
AFOR managing director Jeremy Jacobs said: Food waste processing has huge potential for the UKs composting and biological treatment industry.
As we begin to rely on this sector for renewable energy, via AD, as well as composted products waste will increasingly be seen as a valuable commodity not a problem.
Results indicated that the organics recycling sector remains dominated by quite simple windrow composting systems processing green waste with 12 per cent treated through in-vessel composting.