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UK waste management market proving resilient to the economic downturn

UK waste management market proving resilient to the economic downturn


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2012-09-28 12:48:05 - UK waste management market proving resilient to the economic downturn

The UK waste management market hit a value of £8.4 billion in 2011, having proven resilient to the economic downturn and grown throughout. Underpinned by the large number of EU waste directives, and in particular the Landfill Directive, the UK waste management market has shown significant growth since the turn of the Millennium. Annual Business Inquiry data shows that since 2003, the market for waste collection, treatment and disposal services for waste other than sewage increased from £4.3 billion.Growth rates in recent years were close to 7% year-on-year. This relative resilience is due to structural and regulatory drivers, spurring the industry on to avoid household and commercial waste reaching landfill.The market is characterised by very large municipal multimillion- and multibillion-pound

 

 

contracts, with city and county councils to manage waste.Most of the major waste management operators are former utilities, and scale and scope have been key for these players to secure large contracts, finance infrastructure and offer services profitably. As a result, the competitive landscape is relatively consolidated at the top tier.Most of the larger operators have an international footprint, and offer services across the waste management segments. Out of the top five operators in the UK, three are overseas groups: Veolia leads in terms of market share, Suez and FCC are the next players, both multi-national groups. Biffa and Pennon Group are home-grown.Veolia Environmental Services is the UK´s leading recycling and waste management company, enjoying a UK presence since 1990, with 2011 revenues above £1.2 billion.A growing population where people are living longer will mean steady and increased demand for modern waste management services. The main threat to the industry is more severe and restrictive legislation that makes unrealistic demands on the industry or limits its flexibility of response. For more information on the UK waste management market, see the latest research: UK Waste Management MarketFollow us on Twitter @CandMResearch

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