UK – opportunities for recycled wood products continue to grow

New research from wrap highlights strength of new markets



New research from WRAP (the Waste & Resources Action Programme) shows that potential market demand for recycled wood products (RWPs) is greater than ever, with particular opportunities identified within the developing areas of animal products and the landscaping sector.



The findings are part of a new report entitled ‘‘Emerging higher value markets for recycled wood products‘‘. WRAP commissioned the study in order to identify the size of the end markets into which RWPs could be sold and explain trends in consumption and production.



Within the animal bedding sector the research shows that cattle bedding remains the largest market, with an estimated volume of 3-4 million tonnes in 2004. Equine and poultry bedding represent lower tonnages, but remain substantial volume markets worth £65 million and £35 million respectively. They are also the highest value markets with the average price per tonne for equine bedding between £132-£144 and poultry bedding between £90-£100.



The study reports that 430,000-450,000 tonnes of material goes into equine bedding each year, divided between straw and wood-based products. RWPs currently make up 35 per cent of the wood-based products market with the potential for further growth based on demand for RWPs‘‘ dust-free properties and price competitiveness.



A further 75-85,000 tonnes of material goes into the manufacture of equestrian surface products each year, with a value of between £4-£7 million. While wood-based products account for 30-35 per cent of this market, RWPs currently only make up a small share. However, this share is expected to grow in the longer term with the market value forecast to reach between £5-£6 million in 2010.



RWPs are already well entrenched within the landscaping sector, however, the study suggests there are particular opportunities for business development within the pathways and mulches markets. The pathways sector is currently worth between £475,000-£525,000, taking volumes of between 10,000-12,000 tonnes of material. The report‘‘s authors note a very positive attitude towards the use of RWPs among local authorities.



The total volume of loose fill materials being used for mulch is currently 275,000-300,000 tonnes at a value of £50-£60 million, with landscape contractors, amateur gardeners and local authorities as the main users – choice being influenced by cost and performance benefits.



Market opportunities are also anticipated within the renewable fuel for energy sector. In 2003 renewable energy accounted for around 3 per cent of total electricity generated in the UK. However, the market is forecast to grow and RWPs have an advantage compared to other types of solid biomass feedstock, due to their lower moisture content of between 20 and 25 per cent.



Tom Fourcade, Materials Sector Manager – Wood at WRAP, said: "This report identifies a wealth of opportunities for companies looking to generate more value from recycled wood and highlights some exciting opportunities for market development within the animal products, landscaping and horticultural sectors. This is demonstrated by growth of production of 30,000 tonnes in 2001 to 190,000 tonnes in 2004. WRAP is working to further accelerate this substantial growth."