UK Recycling Industry Now Estimated to Be Worth £23.3 Billion
25 January 2012 - A 15% rise from 2012 brought the worth of the British recycling industry to £23.3bn last year, according to research by market analysis firm Plimsoll.
The report noted a dramatic difference in performance between the firms at the higher and lower ends of the market however, with those in the top quarter of the industry having a pre-tax profit margin of 3.3% and those in the lower ends of the spectrum presenting an average of -0.1% pre-tax profits.
Matthew Farrow, ESA Policy Director, said: “This report supports ESA’s belief that while markets remain highly competitive, the waste and resources sector is a good business to be in, and opportunities are there.”
The figures also show that 38% of companies reported a pre-tax loss, with three in four companies suffering from falling sales last year. Larger companies fared better, generating a £1.44 average return on every £1 invested in recycling.
Commenting on the figures, author of the market study David Pattison said: "This is absolute evidence that whatever growth there is in the market is being captured by a select group of companies."