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Growth & Challenges in the Waste Industry: Investor Insights

2 Min Read

By Sam Grossklaus - Client Services Manager

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The global waste industry is experiencing substantial growth, reaching $58 billion in 20221 and is projected to surpass $90 billion by 2032. This surge is fueled by rising consumer awareness of environmental impact and a growing demand for sustainable solutions. By 2032, the global waste recycling services market is expected to be over $90 billion, with a compound annual growth rate of 4.7% from 2023-2032. However, there are other factors to consider for firms doing private equity due diligence before entering this sector.

However, this growth doesn’t come without its challenges. High barriers to entry to the recycling and waste industry, including complex and varying regulations, initial capital investment costs, and inconsistent government support, pose challenges for investors seeking to capitalize on this expanding market.

Additionally, the recycling process often requires significant upfront investment in infrastructure and technology, while the regulatory landscape can be fragmented and subject to change. These factors contribute to a higher perceived risk for investors, potentially deterring some from entering the market.

Two people are shown organizing their recycling for the waste industry.

Investor Insights

While the current regulatory landscape presents challenges, the market’s growth potential and the rising demand for sustainable solutions offer significant long-term opportunities for investors willing to navigate the complexities. Proactive strategies can help mitigate these risks:

  • Identifying Supportive Environment: Targeting regions with favorable regulatory frameworks and incentives can maximize investment potential.
  • Focusing on High-Impact Solution: Prioritizing technologies and services that align with evolving regulatory landscapes can ensure long-term viability. Waste minimization is an area to monitor due to its social and environmental significance.
  • Advocating for Change: Engaging with policymakers and waste industry stakeholders can help shape a more supportive regulatory environment.
  • Conducting Thorough Due Diligence: Partnering with an expert network like Apex Leaders to assess regulatory landscapes, market dynamics, and investment risks can help mitigate potential pitfalls and identify lucrative opportunities. Conviction in the vetting process backs conviction in deal making or breaking.
An expert advisor on the waste industry leads a conversation with a potential investor.

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Resources:

Market Value of Waste Recycling Services Worldwide in 2022, with a Forecast to 2032