Following a new law about waste classification passed by the Chinese government, a whole new trillion-yuan market has emerged.
On July 1, the “Domestic Waste Management Regulations” were officially implemented. Individuals or units that fail to sort garbage as stipulated by the regulations will face penalties. Many places across the country are also preparing the ground for the official garbage classification implementation.
As a new trend, garbage classification offered excellent opportunity to many businesses to support and grow along with it. This is why many enterprises nowadays are engaged in sanitation equipment manufacturing and supplying, waste disposal, garbage sorting and garbage collection.
According to experts, the new waste sorting regulations are expected to pave the way for the whole new trillion-yuan market. Many enterprises with a good nose for business have already started exploring the possibilities that arise from new regulations. It is expected that the waste sorting will bring greater investment opportunities in the areas such as treatment of kitchen waste, the upgrading of sanitation equipment, recycling of renewable resources and the waste incineration.
In Shanghai, kitchen waste shredders and trash cans are sold out of stock, and retailers have to adopt a purchase restriction or reservation policy to adjust to the situation. The data shows that on June 18, the Jingdong garbage disposal category exceeded 150% year-over-year sales growth; on Tmall, a kitchen waste disposer exceeded 410% year-over-year sales growth in only one hour.
According to estimates by Essence Securities, by 2020, the amount of kitchen waste is expected to reach 110.7 million tons. It is predicted that by 2020, the investment market for kitchen waste treatment facilities will reach 152.4 billion yuan. In addition, waste sorting will facilitate the recycling of renewable resources. According to the prediction of E20 Research Institute, waste separation and recycling will become another potential 10 billion yuan market in China, and the market space will gradually grow from 2019 to 2020.
In June this year, Ministry of Housing and Construction and other ministries and commissions have issued a notice on the comprehensive implementation of the domestic waste classification in cities at/ or above the national level. According to the notice, 46 major cities such as Beijing and Tianjin will completely implement the waste sorting system by the end of 2020; cities at the prefecture level and above have started implementing it since 2019, and will completely adopt it before the end of 2025.
As far as national planning is concerned, some insiders pointed out that the smart technology will play crucial role in the waste classification development. Innovative technologies such as smart services, internet of things and big data have become of paramount importance for the enterprises that have the ambition of becoming waste classification industry leaders. Many enterprises use the classified domestic garbage service points + smart recycling bins + special customized services to collect the data for the statistics, which helps them grow their businesses.
Based on the data collected from the pilot project that included 46 national cities, 70% of the pilot cities obtained waste sorting operation services through market-based methods, and 20% of them have more than 100 million yuan of waste sorting operation service contracts. The industry believes that this year, cities above the prefecture level will completely adopt the domestic waste classification. Based on this data, it is expected that most cities will purchase waste sorting operation services through market-based methods. The industry believes that China’s waste classification is still at its inception, and it requires the cooperation between the government and enterprises.