Plastics Recycling Market Report - UK Analysis
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1 Plastics Recycling Market Report - UK Analysis Published: 16/09/2011 / Number of Pages: 87 / Price: Introduction and Overview AMA Research are pleased to announce the publication of the 4th Edition of AMA Research's 'Plastics Recycling Market Report - UK Analysis'. Incorporating original input and primary research, the report provides a comprehensive and informative review of this developing market. Key areas covered in the report include: UK plastics recycling market - volume of post- use plastic waste recovered for reprocessing, UK reprocessors output by volume and by value, overseas trade. Assessment of recent developments. Forecasts and key drivers e.g. new capacity, closed loop recycling. Market mixes for recovered plastic by polymer type, by origin and by end-use applications. Analysis of post-consumer plastic waste arisings by origin and by polymer type. Overview of plastic consumption - mix & trends by polymer type and by product application. Review of supply -market structure, identification and profiles of leading reprocessors. The report contains a detailed assessment of the plastics recycling market, with interpretation of recent and future developments, key influencing factors, product trends and opportunities. Of particular interest: Expansion of UK plastic reprocessing capacity with a key focus on HDPE and PET 'bottle-to-bottle' recycling, also plastics from the ELV and WEEE streams. Increased levels of use of PET and HDPE recyclate among leading plastic packaging and beverage manufacturers. Substantial year on year increase in PET and HDPE bottle collections. Significant increase in PVC recycling volumes through Recovinyl initiative.
2 Shift in focus towards recycling mixed packaging waste ELV and WEEE plastics. Anticipated shift in focus towards PP closed loop reprocessing. Recent implementation of key legislation to drive up plastic recycling volumes from the WEEE, ELV, agricultural and construction waste streams. Detailed market data and insight on the plastics recycling market by AMA Research, a leading UK provider of construction market intelligence. Companies included: 2k Manufacturing, Avanti Environmental, Axion Polymers, Baylis Recycling, Biffa Polymers, BPI Recycled Products, Centriforce Products, Chase Plastics, Cherry Polymers, CK Polymers, Closed Loop Recycling, Cromwell Polythene, Dekura, ECO Plastics, Ecoplas, Express Recycling & Plastics (ERP), Holt & Macintosh Waste Plastics, J & A Young (Leicester), JFC Plastics, Luxus Recycling, MBA Polymers UK, Melba Products, Monoworld, Norpol Recycling, Oxford Plastics Systems, Petlon Polymers, Plastic Sorting Ltd (PSL), Plumb Polymers, Preston Plastics, Regain Polymers, Roydon Recycling UK, Viridor Polymer Recycling (VPR). Consumption of Plastics in the UK Consumption of polymers by UK plastic industry by type by volume. Consumption of plastics in the UK by product/end-use application by volume. Analysis of the types of polymers used by weight and main applications. Assessment of trends in key product areas - packaging, construction products, automotive industry etc. Plastics Waste Arisings Overview of plastic waste arisings by waste stream by volume. Review of trends in plastic packaging waste Assessment of consumer goods plastic packaging waste by stream i.e. film, bottles, mixed. Assessment of non-consumer plastic packaging waste by stream e.g. film, rigid containers etc. Review of non-plastic packaging waste arisings from construction, agricultural WEEE & ELV streams. Plastics Recycling Market Recovery of post-consumer plastic for recycling by volume uplifted Estimates of value of UK plastic reprocessing market Key market factors - legislation, industry initiatives, available markets for recycled polymer, overseas trade and pricing trends for plastic recyclate and virgin polymers. Analysis of recovered plastic waste by polymer type & applications and identification of key market issues, focusing on PE, PET, PP and PVC. Analysis of recovered plastic waste by origins & applications and identification of key market issues. Key focus on consumer packaging, construction and WEEE. Analysis of recovered plastic waste by end-use applications & identification of key market issues. Key focus on packaging
3 including closed loop bottle-to-bottle recycling. Market Structure Plastic Waste Collection - methods of collection in the industrial, commercial and domestic sectors, key players, trends. Assessment of new and pipeline capacity and estimates of UK reprocessing capacity by materials handled e.g. HDPE & PET bottles, film, rigid plastics. Review of the recycling process - methods of recycling, types of recyclate. Recycling companies - major players, annual handling capacities, materials handled, products. Includes BPI Recycled Products, Biffa Polymers, Closed Loop Recycling, Jayplas, Regain, Dekura, Viridor Polymer Recycling, JFC Plastics, ECO Plastics, Luxus, Roydon Group. Report Summary According to the British Plastics Federation (BPF), UK industry consumes around 4.8 million tonnes of polymers a year and produces around 2.5 million tonnes of end product, the largest area of demand being packaging. It is estimated that around 2 million tonnes of plastic packaging is used in the UK, but this figure is higher when including the packaging used with imported goods. After packaging, the second largest area of demand for polymers is that of construction products, accounting for around 22% of UK polymer supply. Electrical equipment, housewares, agricultural products and vehicle manufacture account for around 30% of demand between them. The remaining 12% of demand is split between medical equipment, toys and sporting goods, clothing and other. In the UK, it has been estimated that plastic waste arisings have been growing by around 2% a year, reaching around 4.5 million tonnes in There are some 50 groups of plastics, with hundreds of different varieties, all of which are potentially recyclable. However, problems with recycling mixed materials means that the recycling market is dominated by six of the most common polymer types, many of which are used in packaging. While it is unlikely that there will be a dramatic upturn in the variety of plastics recycled, with investment in recycling plant only financially viable for the more commonly occurring products, legislative influences are likely to produce significant changes in the product mix over the next few years. The market structure is complex, with recycling of post-use plastic involving collection, sorting, reprocessing and incorporation of recycled polymer into new products. Some companies focus on only one area of activity, while other, often larger, players are active in several. The benefits of reusing industrial process waste in-house, combined with the requirement for producers in some sectors to meet recycling targets, have encouraged some plastics manufacturers to run a recycling operation, commonly incorporating recycled plastic into a proportion of their own products. The domestic sector represents the largest source of post-use plastic waste. While the number of local authorities operating collection schemes has increased in recent years, kerbside collection is the method most likely to encourage participation by the general public. Meanwhile, recovery of plastic from the commercial and industrial sectors is likely to be encouraged by increasingly comprehensive legislation. Use of recycled polymer by manufacturers has traditionally depended upon it offering a significant price advantage over virgin polymer, with usage historically constrained by the low prices of virgin material. In addition, the market for recycled polymer has been limited by the perception amongst some end-use sectors (e.g.: the construction industry) that it is of inferior quality. Within the food packaging industry, the largest single market for plastic, usage is limited by safety concerns, although recycled plastic can be used, sandwiched between layers of virgin polymer. Further growth of the recycled plastics market is dependent upon finding applications for the reprocessed polymer, with potential areas of development analysed in the report. List of Report Contents
4 Contents Listing 1. INTRODUCTION BACKGROUND SOURCES OF INFORMATION 7 2. EXECUTIVE SUMMARY 8 3. ECONOMIC ENVIRONMENT GDP INFLATION & INTEREST RATES UNEMPLOYMENT HOUSEHOLD CONSUMPTION HOUSING & CONSTRUCTION STERLING POPULATION PROFILE CONCLUSIONS UK PLASTICS CONSUMPTION MARKET OVERVIEW Growth Market Mix by Polymer Type Market Mix by Application KEY END USE APPLICATIONS Packaging Construction Products Furniture and Housewares Automotive Industry Electrical and Electronic Equipment Other End-Use Applications 25
5 5. PLASTIC WASTE ARISINGS OVERVIEW OF ARISINGS PACKAGING HOUSEHOLD /CONSUMER NON-PACKAGING PLASTIC WASTE ARISINGS ELECTRICAL AND ELECTRONIC EQUIPMENT MISCELLANEOUS End of Life Vehicles (ELV) Construction & Demolition Agriculture PLASTICS RECYCLING INTRODUCTION OVERVIEW OF RECENT MARKET DEVELOPMENTS KEY MARKET DRIVERS Legislation National Waste Strategies Prices Recycling Infrastructure Development MARKET PROSPECTS Packaging Recycling Targets WRAP Business Plan Exports Prices Reprocessing Capacity Mixed Plastics Waste Recovery Industry Structure RECOVERED PLASTIC MIXES BY POLYMER / TYPE / END USE 54
6 7.1 RECOVERED PLASTIC WASTE BY TYPE Overview Packaging End of Life Vehicles Construction & Demolition WEEE Agriculture Other Sources RECOVERED PLASTIC WASTE BY POLYMER TYPE HDPE and LDPE Polypropylene Polystyrene Polyethylene Teraphthalate (PET) Polyvinyl Chloride Other Polymer Types MARKETS FOR RECYCLED PLASTIC Overview Packaging Construction Local Authorities Other Applications Other End-Use Applications MARKET SUPPLY CHAIN STRUCTURE MARKET STRUCTURE COMPANY PROFILES 80
7 Tables & Charts CHART 1 INTEREST RATES AND INFLATION (CPI) FROM CHART 2 PDI & SAVINGS RATIO AT CURRENT PRICES TABLE 3 EXCHANGE RATE FLUCTUATIONS STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 15 CHART 4 AGE DISTRIBUTION OF THE RESIDENT UK POPULATION MID-2008 ('000) 15 CHART 5 ESTIMATED TYPICAL ANNUAL CONSUMPTION SHARE BY POLYMER TYPES BY VOLUME (HDPE, PP, L/LDPE, PVC, PS, EPS, ABS, PET/PBT ETC) 18 CHART 6 ESTIMATES OF TYPICAL ANNUAL CONSUMPTION OF POLYMERS BY UK MANUFACTURERS BY END USE APPLICATION 20 TABLE 7 TYPES OF PLASTIC USED IN THE UK BY WEIGHT AND MAIN USES. 21 TABLE 8 PLASTIC PACKAGING PRODUCTS - UK CONSUMPTION BY TYPE CHART 9 UK PLASTIC PACKAGING MARKET BY POLYMER TYPE BY VOLUME 23 TABLE 10 MAIN CATEGORIES OF PLASTIC PRODUCTS USED IN CONSTRUCTION CHART 11 UK PLASTICS WASTE ARISINGS BY ORIGIN TABLE 12 UK TONNAGE OF PACKAGING IN WASTE STREAM ('000 TONNES) CHART 13 UK HOUSEHOLD PLASTIC PACKAGING WASTE ARISINGS BY PRODUCT TYPE BY TONNAGE (BOTTLES, FILMS AND MIXED PLASTICS) 28 CHART 14 NON-HOUSEHOLD/CONSUMER PACKAGING WASTE ARISINGS BY MATERIAL BY ESTIMATED SHARES BY TONNAGE 29 CHART 15 NON-HOUSEHOLD/CONSUMER PLASTIC PACKAGING WASTE BY TYPE 30 TABLE 16 WEEE COLLECTED UNDER PRODUCER COMPLIANCE SCHEMES BY PRODUCT GROUP, LARGE HOUSEHOLD APPLIANCES, DISPLAY EQUIPMENT ETC) 32 TABLE 17 UK PLASTIC RECYCLING - ESTIMATED SIZE BY VALUE ( M MSP) & BY VOLUME (TONNES) 37 TABLE 18 KEY EU DIRECTIVES RE WASTE DISPOSAL & RECYCLING 40 TABLE 19 AVERAGE PRICE RANGES PAID FOR PLASTIC PACKAGING WASTE FROM MSW AND THE C & I WASTE STREAMS ( /TONNE) 45 TABLE 20 NEW BOTTLE REPROCESSING CAPACITY 2008 TO TABLE 21 UK PLASTIC RECYCLING - FORECASTS BY VALUE ( M MSP) & BY VOLUME (TONNES) 48
8 TABLE 22 PLASTIC REPROCESSING CAPACITY IN THE DEVELOPMENT PIPELINE CHART 23 PLASTIC WASTE RECOVERY MIX BY ORIGIN BY VOLUME TABLE 24 PRODUCER RESPONSIBILITY OBLIGATION TARGETS FOR RECOVERING PACKAGING WASTE CHART 25 VOLUME OF PLASTIC PACKAGING COLLECTED FOR RECYCLING CHART 26 UK RECOVERED PLASTIC PACKAGING -TRENDS IN EXPORTS AND UK REPROCESSING CHART 27 PLASTIC PACKAGING RECOVERED BY TYPE 59 CHART 28 VOLUME OF PLASTIC BOTTLES COLLECTED FOR RECYCLING TABLE 29 SUMMARY OF PLASTIC BOTTLE COLLECTION SCHEMES (PARTICIPATION, LA KERBSIDE COLLECTIONS, BOTTLE BANKS ETC) 2009, 2007 & CHART 30 MARKET MIX FOR RECOVERED PLASTICS BY TYPE BY VOLUME 65 TABLE 31 EUROPE AND UK - PVC RECYCLING VOLUMES (TONNES) CHART 32 RECOVINYL REGISTERED RECYCLED VOLUMES BY APPLICATION BY TONNAGE ACCEPTED - EUROPE 69 TABLE 33 USES FOR PLASTIC RECYCLATE IN UK MANUFACTURING 71 CHART 34 MIX OF END-USE APPLICATION AREAS FOR PLASTIC RECYCLATE 72 CHART 35 PLASTICS RECYCLING MARKET STRUCTURE 77 TABLE 36 MAJOR UK PLASTICS REPROCESSORS SUPPLYING RECYCLATE TO THIRD PARTY CUSTOMERS The 'Plastics Recycling Market Report - UK Analysis' costs 495+VAT (if applicable) for a PDF version. Other formats are available - click here for a information about available report formats. All AMA reports are sold with a single user licence as standard. For more information about AMA licences click here. About AMA Research Established in 1989, AMA Research is widely recognised as the leading specialist provider of market research to the UK building and construction industries. AMA s research and analysis goes beyond the more commonly available range of statistical and company information to provide expert, informed commentary and in-depth market analysis, making the reports a valuable and relevant resource for understanding the UK s construction and associated markets. We offer the following: Consultancy and bespoke research projects Published research reports high quality, detailed research reviews covering a wide range of environmental,
9 building and construction products. Our extensive experience and in-house research database enables us to offer specialised and flexible bespoke research services, as well as giving excellent value for money. Our experienced in-house team of researchers are experts in their fields and adept in conducting original and relevant research for reports or bespoke projects, and key decision makers across the building and construction industries, both in the UK and abroad, frequently use our high-quality reports as their primary source of market data. To find out more about AMA Research, visit: or call us on
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