The recycling facilities industry, or businesses selling recycled commodities and finished goods, has grown at an annual rate of 3.3 percent in the past five years, according to a new study.
“Although the recession reduced consumer demand for products in general, demand for products manufactured with recycled goods has risen overall during the past five years due to shifts in consumer preference toward products that are perceived as environmentally friendly,” said Deonta Smith, industry analyst for Santa Monica, Calif.-based market research firm IBISWorld, in a news release.
Because of that, the report states, recycled product makers have demanded more recycled commodities from wholesalers, aiding demand for recycling facilities in turn.
Prices for recycled commodities slumped during the recession but have since rebounded, prompting an estimated 6-percent rise in industry revenue to $5.9 billion in 2013.
The report concludes that consumers will increasingly demand recycled products in the next five years.