Table of Contents
Overview
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- Key issues covered in this Report
- COVID-19: market context
- Economic and other assumptions
- Covered in this Report
Executive Summary
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- Impact of COVID-19 on the waste management and recycling sector
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on waste management and recycling, 6 April 2021
- The market
- COVID-19 disruption leads to a decline in total waste generation in 2020
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- Figure 2: Waste arisings in the UK, by sector, 2016-20
- Local authorities experience higher waste management costs due to COVID-19
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- Figure 3: England budget revenue expenditure on waste management, net current expenditure, 2020/21
- Shift from landfill disposal towards recycling and incineration with EfW
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- Figure 4: Local authority collected waste treatment, England, ‘000 tonnes, 2015/16-2019/20
- Significant investment in UK recycling infrastructure vital to creating a circular economy
- Companies and brands
- UK waste management services industry dominated by the “Big Five”
- Appetite for M&A activity remains
Issues and Insights
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- Move towards circular economy drives significant investment in UK reprocessing and recycling infrastructure
- Sustainability becoming a key measure of business performance
The Market – Key Takeaways
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- Total waste volumes fall in 2020 due to COVID-19 impact
- England’s household recycling rates see little growth
- Local authorities see waste management costs rise due to COVID-19
- Just over half of English councils run a food waste collection service
- Significant investment in UK recycling infrastructure vital to creating a circular economy
Waste Arisings
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- COVID-19 disruption leads to a decline in total waste generation in 2020
- Commercial and industrial waste volumes fall in 2020 as a result of COVID-19 restrictions
- Household waste arisings rose by an estimated 8% last year
- Households throw away less food during COVID-19 crisis
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- Figure 5: Waste arisings in the UK, by sector, 2016-20
- Construction output
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- Figure 6: UK construction output, 2016-20
- Household waste
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- Figure 7: UK household waste arisings, by nation, 2015-19
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- Figure 8: Composition of waste from England households, 2019/20, (000 tonnes)
- Composition of dry recycling from English households
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- Figure 9: Composition of dry recycling from English households, % of total, 20110 and 2020
Waste Collection
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- Local authority waste management expenditure
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- Figure 10: England budget revenue expenditure on waste management, net current expenditure, 2017/18-2020/21
- Local authority waste collection
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- Figure 11: UK household residual waste collection, by frequency, 2019/20
- Figure 12: Percentage of local authorities collecting each dry material, by material, 2019/20
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- Figure 13: Percentage of local authorities collecting each dry material, by material, 2019/20
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- Figure 14: UK household food waste collections, by nation, 2019/20
Waste Treatment
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- Figure 15: Local authority collected waste treatment, England, ‘000 tonnes, 2015/16-2019/20
- Waste infrastructure
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- Figure 16: Number and capacity of permitted final treatment facilities, UK and England, 2016
- Strong expansion of EfW capacity, but uncertainty regarding future capacity additions
- Significant investment in UK recycling infrastructure vital to creating a circular economy
- Decline of landfill
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- Figure 17: Landfill capacity trends in England, 2009-19
- Recycling rates
- Household waste recycling rates
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- Figure 18: UK household waste recycling rate, by nation, 2014-18
- Packaging waste recycling rates
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- Figure 19: Packaging recycling and recovery targets, 2018-22
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- Figure 20: UK packaging waste and recycling/recovery, by material, 2019 and 2020, (tonnes)
- Issues surrounding plastic waste exports
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Market Forecast
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- Short-, medium- and long-term impact of COVID-19 on the waste management and recycling sector
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- Figure 21: Short-, medium- and long-term impact of COVID-19 on waste management and recycling, 6 April 2021
- Market drivers and assumptions
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- Figure 22: Key economic drivers affecting MBD’s market forecast, 2019-2025 (prepared on 9 March 2021)
- Forecast methodology
- Forecast waste arisings
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- Figure 23: Forecast of waste arisings in the UK, 2021-25
- Figure 24: Forecast of household waste arisings in the UK (adjusted for COVID-19), 2021-25
Market Trends
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- Technological advancements
- Sustainability becoming a key measure of business performance
The Impact of the Economy
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- UK economy contracts by record 9.9% in 2020
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- Figure 25: Annual GDP growth rate, historic and forecast, 2015- 25, (Annual % change)
Market Drivers
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- Government proposals and actions to tackle plastic and packaging waste
- Key measures set out in Resources and Waste Strategy to be introduced through the Environment Bill
- Following years of cuts, Defra receives a funding boost between 2019 and 2022
- UK Plastic Pact aims to create circular economy for plastics
- WRAP sets out roadmap to recycle flexible plastic
- Scrutiny on plastic and packaging waste supports the need for greater domestic recycling and processing capability
- Growing issue of food waste
- Landfill tax hikes incentivise recycling and alternative ways of managing and disposing waste
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- Figure 26: Landfill tax rates, £ per tonne, 1st April 2017-21
Companies and Brands – Key Takeaways
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- UK waste management services industry dominated by the “Big Five”
- Appetite for M&A activity remains
- Waste management companies explore carbon capture, utilisation and storage solutions for EfW plants
Industry Structure
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- Industry development
- Appetite for M&A activity remains across the waste management industry
- Changes in the structure of the industry
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- Figure 27: Analysis of changes in the structure of the waste management industry, number of outlets and businesses, 2016-20
- Structure by turnover
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- Figure 28: Analysis of the financial structure of the waste management industry, £’000 and number of businesses, 2019 and 2020
- Structure by employment
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- Figure 29: Analysis of the employment structure of the waste management industry, 2019 and 2020
Company Profiles
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- Biffa
- Acquistional activity
- Investment in plastic recycling facilities
- Biffa invests in UK EfW infrastructure
- Financial performance
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- Figure 30: Financial analysis of Biffa Plc, 2016-20
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- Figure 31: Turnover analysis of Biffa, by business segment, 2020, (£ million and %)
- Company strategy
- European Metal Recycling
- CMA orders EMR to sell sites as part of a recent acquisition
- EMR cuts hundreds of jobs due to impact of COVID-19
- Financial performance
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- Figure 32: Financial analysis of European Metal Recycling, 2015-19
- Company strategy
- FCC Environment (UK)
- Recent company activity
- Financial performance
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- Figure 33: Financial analysis of FCC Environment (UK), 2015-19
- Company strategy
- Renewi
- Financial performance
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- Figure 34: Financial analysis of Renewi, 2016-20
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- Figure 35: Turnover analysis of Renewi, by business segment, 2019-20
- Figure 36: Turnover analysis of Renewi, by geographic segment, 2020, (€m and %)
- Company strategy
- SUEZ Recycling and Recovery UK
- Recent company activity in the UK
- Financial performance
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- Figure 37: Financial analysis of SUEZ Recycling and Recovery UK, 2015-19
- Company strategy
- Veolia Environmental Services (UK)
- Recent company activity
- Financial performance
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- Figure 38: Financial analysis of Veolia Environmental Services (UK), 2016-19
- Company strategy
- Viridor
- Financial performance
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- Figure 39: Financial analysis of Viridor, 2016-20
- Company strategy and outlook
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- Trade associations
- Trade magazines
- Trade events
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