Recovered wood continues to be in high demand across several industries:

• Panelboard manufacturing, which increasingly relies on recycled fibre,
• Biomass and energy generation,
• Animal bedding and secondary materials markets.

Processing volumes have largely returned to pre-pandemic levels, and most material is being successfully diverted from landfill.

Yet, despite this demand, market capacity limits, regulatory changes and intermittent offtake outages have created a fragile balance — one that’s producing unpredictable supply chains and fluctuating gate fees.

The waste wood market is no longer moving in one direction. Instead, prices are splitting sharply between high-grade and low-grade material.

According to Let’s Recycle data for 2025:

Month	High Grade (£/t)	Low Grade (£/t)
January	21 – 0	−15 – −20
April	0 – −10	−40 – −45
July	0 – −45	−60 – −65
October	0 – −55	−65 – −70

High-grade wood, such as clean pallets and packaging, started the year with modest positive values but has slipped to zero or negative by late summer.

Low-grade and contaminated wood, meanwhile, has seen gate fees rise steadily — in some cases hitting −£70 per tonne by autumn.

This widening gap is reshaping how businesses approach waste management.

Several ongoing issues are keeping the market unpredictable:

1. Regulatory tightening
   The Environment Agency’s stricter classification and testing requirements for “potentially hazardous” wood have raised compliance costs and reduced available low-cost outlets.
2. Offtake bottlenecks
   Biomass and panelboard plants still face planned and unplanned maintenance periods. When key offtakers go offline, supply gluts quickly turn into shortages — pushing up gate fees.
3. Energy market influences
   Fluctuations in biomass fuel demand, pellet imports, and global energy prices all affect domestic wood recycling economics.
4. Quality and contamination pressures
   End users are becoming more selective about feedstock quality. Loads with painted, treated, or mixed wood require extra sorting and disposal, eroding profitability.

Short-term volatility is likely to continue, especially during seasonal maintenance windows when offtake capacity drops.

However, several trends could start to rebalance the market:

• Investments in sorting and processing – more facilities are adopting advanced classification and fibre upgrading.
• Emerging recycled wood products – such as wood–plastic composites and insulation materials — could create new outlets.
• Greater regulatory clarity – as the Environment Agency and Waste Recycling Association refine testing and classification guidance.

High-quality, clean wood will remain in demand, while contaminated or mixed loads will continue to face cost pressure.

The sector is gradually professionalising. More recyclers are diversifying outlets and investing in technology that delivers cleaner, higher-value outputs.

Circular economy innovation, particularly around advanced fibre recovery, is expected to reduce reliance on a few large biomass plants and stabilise pricing over time.

However, this evolution will take investment and patience. For now, the most resilient operators will be those with diversified outlets and strong quality control.

To stay competitive and compliant in a volatile market:

At Flame UK, we work closely with recycling partners and offtakers nationwide to help businesses manage wood waste efficiently — even in unpredictable market conditions.

Our team can support you with:

• Waste wood segregation advice,
• Regular or one-off collections,
• Regulatory guidance,
• Cost-effective recycling routes.

Contact Flame UK today to discuss how to make your wood waste strategy more resilient and cost-efficient.