Rising Demand and Opportunities for Small Businesses

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Cardboard Recycling: Rising Demand and Opportunities for Small Businesses

The demand for recovered paper, especially cardboard (OCC), is on the rise across North America. With advancements in recycling facility equipment and higher cardboard prices, there are new opportunities for small businesses focused on cardboard recycling. According to Fastmarkets analysts, the market is evolving as mills increasingly prioritize using recycled fiber.

Here’s what small businesses need to know:

  1. OCC Prices Stabilizing In the past year, OCC prices have stabilized, with July 2023 prices up 114% from the previous year, averaging $105 per ton. This shift is driven by increased capacity at recycled fiber-based mills and tight paper supply.

  2. Recycling Facility Upgrades Recycling centers (MRFs) are upgrading their equipment with advanced technology, like optical sorters and AI-enabled machines. These improvements lead to cleaner and higher-value cardboard streams, meaning small recyclers can benefit from better prices. Companies like WM are investing heavily in new and upgraded recycling facilities, increasing the production of cardboard bales.

  3. Growing Demand for Recycled Cardboard Many North American mills are adapting to use more recycled materials. Five paper machines in North America added 2.4 million tons of recycled containerboard capacity in 2023 alone. This means the demand for recycled cardboard is expected to stay strong.

  4. Limited Exports, Strong Domestic Market As demand grows, most of the recovered cardboard will be consumed domestically, leaving less available for export. Small businesses involved in cardboard recycling should focus on the expanding North American market.

By staying informed about market trends and investing in efficient recycling processes, small businesses can take advantage of the growing demand for recovered cardboard. The future of cardboard recycling is bright, and small recyclers are in a position to thrive as the industry continues to evolve.  Call Greene Recycling and start your cardboard bale pickup route today!