Thinking of Buying a Recycling Business in Australia? Here Are 3 Vital Questions to Ask

The Australian recycling and waste remediation industry generated $8.4 billion in revenue in 2025, with profit margins of 6.7%. The sector employs over 17,400 people across more than 2,000 enterprises.

Revenue has grown at 1.3% annually over the past five years, supported by population growth, landfill levies, and rising environmental awareness. Demand is expected to accelerate at 2.2% annually through 2030, reaching $9.4 billion as construction rebounds, government recycling targets tighten, and investment in new technology expands.

1. Is the Business Financially Strong and Aligned with Recycling Trends?

Why It Matters

Recycling profitability depends on waste volumes, government regulation, and commodity prices. Strong margins are supported by scrap metal prices, landfill levies, and demand for hazardous waste services. Businesses must balance volatile input costs with opportunities from automation and government grants like the Recycling Modernisation Fund.

What to Check

• Profitability – Benchmark against the industry’s 6.7% margin.
  
  

• Revenue mix – Assess reliance on scrap metal onselling, council contracts, or hazardous waste removal.
  
  

• Purchase costs – Review exposure to volatile chemical and commodity prices.
  
  

• Government support – Check access to grants, subsidies, and compliance with recycling targets.
  
  

2. Does the Business Have Secure Contracts and Market Position?

Why It Matters

Local councils, construction firms, manufacturers, and households generate the majority of recyclable waste. Long-term contracts with councils or major industrial clients are critical to stability. Operators with advanced facilities and established brands like Cleanaway, Sims, and Veolia dominate, but smaller niche players can thrive through specialisation.

What to Check

• Contracts – Identify length and stability of supply agreements with councils, construction, or industrial clients.
  
  

• Market share – Review competition in the operating region, as transporting waste long distances is costly.
  
  

• Client base – Assess reliance on volatile construction activity versus steady household and council contracts.
  
  

• Reputation – Consider compliance history with environmental regulators.
  
  

3. Is the Business Positioned for Future Growth and Innovation?

Why It Matters

Rising landfill levies, new recycling targets, and sustainability initiatives are driving long-term demand. Automation, intelligent sorting systems, and partnerships with manufacturers are reshaping the industry. Firms investing in technology and circular economy solutions will be best placed to grow.

What to Check

• Technology adoption – Look for automation, AI sorting systems, and partnerships with manufacturers.
  
  

• Regulatory compliance – Confirm adherence to new waste diversion targets (80% by 2030).
  
  

• Diversification – Assess ability to expand into hazardous waste, remediation, or niche recycling markets.
  
  

• Sustainability – Review alignment with state recycling plans and circular economy initiatives.
  
  

Ready to Invest in a Thriving Recycling Business?

With household growth, stronger regulation, and increasing environmental awareness, the recycling industry offers steady demand and expanding opportunities.

Success will depend on securing reliable contracts, maintaining cost efficiency, and investing in innovative technologies to stay ahead of regulation and competition.

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