Industry research
Scope
Europe
Companies
197
Table of contents
What does the waste management market landscape look like in Europe?
The European waste management landscape is dominated by a handful of major multinationals (e.g. Veolia, RETHMANN Gruppe, FCC Group), followed by a highly fragmented longtail of regional, often privately owned operators. Market participants also include state- or municipality-owned waste managers, which have not been covered in this research. The industry is consolidating, driven by multiple arbitrage opportunities for buy-and-build expansion, as well as succession problems and regulations (e.g. EU metals export control) disproportionately impacting smaller players.
What is the level of investor activity in Europe's waste management industry?
Sponsor-led activity has been moderate, with ~37% of identified assets being backed by financial sponsors (August 2025). This interest is mainly driven by limited exposure to economic cycles, recurring revenue streams with long-term contracts and the potential for a favourable sustainability positioning. On the other hand, limited pricing power, capital-intensive operations and inherent dependence on state regulations represent headwinds for investors.
What are the key ESG considerations in Europe's waste management industry?
ESG topics are centred around the positive environmental influence of recycling activities through extending the economic life of materials and decreasing the share of waste incinerated or deposited at landfills. However, waste exports to developing countries and frequent regulatory breaches have tainted the industry’s reputation on the social and governance fronts.
The EU generated 2,233m tonnes of waste in 2022, equivalent to ~5.0 tonnes per capita, up from a total 2,151m tonnes in 2020 (+1.9% CAGR; Eurostat, September 2024)
The total European waste management market was estimated at ~€266bn in 2024, with Germany accounting for the largest share at ~€58.4bn (Xerfi, June 2025)
Regulations and government initiatives aimed at increasing the recycling rates drive waste collection fees up, motivate producers to increase their share of recyclable products and generate revenue to invest in improved waste management (interview by Gain.pro; European Environment Agency, June 2023; Financial Times, February 2025)
The emergence of smart waste management methods is expected to support margins. AI-driven sorting robots leveraging billions of waste images, chipped recycling bins, GPS-operated compactors and other novel technologies are set to cut ongoing costs (Earth.org, April 2023; Waste Management World, February 2024)
The underdeveloped textile recycling sector holds strong growth potential with advancements in chemical recycling of polyester. This is expected to lift low textile recycling rates, expand the market and boost revenue for industry incumbents (Waste Today, June 2025; Wired, February 2025; McKinsey & Company, July 2022)
Negative second-order effects from the growing environmental consciousness of consumers. Longer product life cycles and reductions in household waste are expected to lower the total demand for waste collection and recycling services (interview by Gain.pro; European Commission, August 2025)
The curbing of scrap metal exports by the EU threatens market dynamics and growth for European metals recyclers, as exports have historically offset very low EU demand for recycled materials (Fastmarkets, January 2025). The regulation is expected to create oversupply within the EU, driving prices down and compressing the margins of industry incumbents (Rabobank, July 2025)
Regulatory restrictions on municipal waste incineration, industry-wide fleet electrification push and volatile energy prices are expected to increase operational costs for EU waste managers across the board, eroding profitability and reducing attractiveness for investors (Resiclo, July 2025; Cube Infrastructure, November 2023; Environment+Energy Leader, March 2025)
With the full report, you’ll gain access to:
Detailed assessments of the market outlook
Insights from c-suite industry executives
A clear overview of all active investors in the industry
An in-depth look into 197 private companies, incl. financials, ownership details and more.
A view on all 908 deals in the industry
ESG assessments with highlighted ESG outperformers
