The UK market for recycling construction and demolition waste (C&D) is expected to reach $3.2bn (£1.9bn) by 2020, according to new research.
A report by consultants Frost & Sullivan said that the UK C&D waste market was worth $2.4bn in 2012 and could experience significant growth in the next six years.
The study, ‘European Construction and Demolition Recycling Services Market’, forecast that the amount of C&D waste in the UK will rise by an average of 3.1% each year to just under 133 million tonnes in 2020.
The UK already recycles a relatively high proportion of C&D waste, 66.4% in 2012, compared to other EU countries. The rate is predicted to raise to 75.5% by 2020.
Overall, the European market for recycling C&D waste is also expected to grow significantly as waste is predicted to rise almost 26% by 2020.
The increase in C&D waste is intensifying demand to limit landfill, which is likely to boost business for firms operating in C&D waste management, according to the report.
The analysis concluded that Europe is expected to experience increased infrastructure development as it emerges from the economic downturn and will be looking to use recycled aggregate rather than primary materials to keep costs down.
Recycling C&D will also be boosted by European targets and the creation of legal frameworks to encourage the market.
“Market development is strongly driven by the Waste Directive (2008/98/EC), wherein C&D waste must achieve a recycling target of 70% by 2020,” said Frost & Sullivan energy and environmental research analyst Monika Chrusciak.
“Market revenues will also get a leg up from the future optimisation of collection and recycling technologies.”
Nearly 95% of C&D waste could be reused, but the recycling process is not managed properly, the report concluded.
Waste management firms will have to improve the way they deal with C&D waste to gain the full financial benefits, the researchers pointed out.