Recyclable Material Wholesalers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 6,260 recyclable material wholesalers in the US distribute metal scrap, glass scrap, paper scrap, plastic scrap, and other recyclable materials for reuse in manufacturing, construction, and other applications. The industry includes auto wreckers who dismantle motor vehicles to resell scrap materials, rather than selling used auto parts.
Dependence On Economy
Demand for recyclable materials is dependent on economic conditions, particularly the strength of the manufacturing and construction sectors.
Volatile Scrap Prices
Prices for recycled materials can vary widely from year to year, affecting revenues and inventory valuations for wholesalers.
Industry size & Structure
The average recyclable material wholesaler has a single location, employs about 15-16 employees and generates $11-12 million in annual revenue.
- The industry consists of about 6,260 companies that employ 100,000 workers and generate $78 billion in annual revenue.
- The industry consists primarily of small family-owned businesses.
- The industry is fragmented, as the top 50 companies account for only 47% of industry revenue.
- Large companies include America Chung Nam (paper and plastic recycling), David J. Joseph Company (scrap metal and a subsidiary of Nucor Corp.), OmniSource (scrap metal and a subsidiary of Steel Dynamics, Inc.), Sims Metal Management (scrap metal and U.S. subsidiary of Sims Group Ltd. of Australia) and Radius Recycling (formerly Schnitzer Steel Industries).
- Some firms act as brokers, selling recycled materials for owners of material recovery facilities (MRFs), while others operate their own MRFs.
- Some large companies are vertically integrated and also process scrap material into finished products.
- The industry also competes with the recycling operations of large waste management companies, such as Waste Management, Inc. and Republic Services, Inc.
Industry Forecast
Recyclable Material Wholesalers Industry Growth
Recent Developments
Jan 10, 2025 - Aluminum Can Recycling Hits Low Point
- In 2023, the US recycling rate for aluminum cans was 43%, down from an average of about 52% since 1990, according to a report released in December by the Aluminum Association and the Can Manufacturers Institute (CMI). In 2021, CMI and its members established a goal of hitting a 70% recycling rate by 2030. However, given the current rate, achieving the CMI’s 2030 goal is unlikely given current US recycling systems and policy. To help improve aluminum recycling, in 2025 CMI plans to lobby for extended producer responsibility (EPR) and deposit return legislation. Through EPR programs, firms that manufacture packaging products provide financial or operational support to help collect, recycle, and manage packaging. By August 2024 the only states with EPR laws were California, Colorado, Maine, Oregon, New Jersey, Minnesota, and Washington, according to Source Intelligence.
- According to Packaging Dive, a recent report by the National Association for PET Container Resources (NAPCOR) estimates the US PET (polyethylene terephthalate) bottle collection rate in 2023 was 33%, up from 19% in 2022. The level of postconsumer recycled PET (rPET) used to make new bottles and jars in the US and Canada reached a record-high of 16.2% in 2023, up from 13.2% in 2022. NAPCO’s report also showed that prices for rPET rose in 2024 while virgin PET prices have trended downward. Rising recycling rates and rPET price broth suggests steady demand from consumer packaged goods manufacturers.
- In December, prices for most curbside recyclables declined, but some categories saw gains, according to RecyclingMarkets.net. The national average natural high-density polyethylene (HDPE) price increased 13% over November and grew 128% over December 2023. Aluminum can prices rose 10.3% in December over November and were up 42% compared to a year earlier. Prices for post-consumer PET bottles and jars fell 10.5% in December from a month earlier, but PET prices were up 39.7% over December 2023. Prices for color HDPE fell 32% in December from the previous month and were down 70% compared to December 2023. Polypropylene prices fell 5.2% in December compared to the prior month but were up 83% year-over-year. Prices for old corrugated containers (OCC) used to manufacture new containers declined 5.2% in December and were down 8.7% from a year earlier. Sorted residential paper prices were unchanged in December compared to November but were up 23% year over year.
- Some of the largest waste-hauling firms saw their recycling-related third-quarter revenues rise amid higher commodity prices for several types of recyclable materials. Republic Service’s recycling revenue grew 41.6% in Q3 2024 compared to the same period in 2023, and Waste Connections’ recycling segment saw a rise of 93%. Waste Management’s recycling operations’ revenues increased by more than 41%.
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