If 2024 has taught us anything, waste costs are on a relentless rise. With fewer recycling options in New Zealand and the implementation of waste levies and local authority levies, managing waste has become increasingly challenging.

In 2024, the team at Total Utilities successfully managed $13.7 million worth of Waste and Recycling tenders, achieving impressive savings of $3.5 million for our clients. These savings ranged from as high as 59% to an average of 26%.

Looking ahead to 2025

However, the current cost trajectory is clear: expenses will continue to climb with another round of waste levies starting on July 1st, municipal landfill increases, and annual price hikes from service providers. For instance, the “waste collection” producer price index increased by 5.9% between November 2023 and 2024[1].

The closure of the OJI Fibre processing plant in Auckland has added another layer of complexity. All cardboard now needs to be exported, which incurs additional freight costs to recycling destinations offshore. This change has resulted in reduced returns for both processors and clients. Oji Fibre Solutions will continue to recycle around 90,000 tonnes of cardboard annually at its Kinleith Mill[2].

Despite these challenges, there is some positive movement in the industry. The expansion and acquisitions of waste and recycling providers foster competition, especially in regional locations. Globally the waste recycling services market is estimated to grow from USD 124.23 billion in 2024 to USD 155.55 billion by 2029, at a CAGR of 4.60%[3].

How Total Utilities Can Help

Total Utilities is dedicated to assisting you in reviewing your current waste contracts, focusing on pricing, efficiencies, and diversion rates. We offer advisory services to help you evaluate your options and find solutions for increased diversions, enabling you to make informed decisions about your waste contracts.

By staying proactive and informed, you can better manage your waste contracts, optimise costs and efficiencies, and make strategic decisions for your business’s future.

Discover how Total Utilities can help you streamline your Waste Procurement, reduce costs, and provide comprehensive reporting.

References

[1]: Waste Dive, 2024 Waste and Recycling Trends 

[2]: Oji Fibre Solutions, Closure Announcement 

[3]: Mordor Intelligence, Waste Recycling Services Market Analysis