The UK waste management market will grow significantly to £10.79bn by 2016, but only after “subdued growth” this year, according to a new report.
A shrinking economy last year and continued economic uncertainty this year will stunt growth in the sector this year, according to the Waste Management Market Report 2013 from market research firm Key Note.
The report quotes National Statistics Annual Business Survey figures showing that the waste management market grew by almost 10% in 2011 compared to the previous year. But Key Note predicts that growth for last year is likely to be much smaller at 1% with a value of £9.23bn, followed by 2.2% growth this year, to £9.43bn.
However rising consumption levels across the UK as the economic situation improves will increase the pace of growth in the waste management sector from around 2014. By 2016, the report forecasts that the total UK waste management market will have a value of £10.79bn, representing an increase of 53.8% from 2007.
However, waste volumes have been declining the report says, quoting figues from Eurostat showing a 22.5% fall in waste arisings between 2008 and 2010, the most recent year figures are available. Key Note predicts further falls for 2011 figures.
The study highlights the significant growth in the volume of municipal and commercial and industrial waste over the recent years, due to improvements in collection services and Government waste initiatives.
It also pinpoints the European waste hierarchy and the UK Government’s drive towards a zero waste economy as the biggest issues impacting the waste management industry, citing the development of anaerobic digestion technology and a reduction in the amount of waste sent to landfill as examples.