Why the UK Is Facing a Food Waste Crisis as AD Plants Hit Capacity
The UK’s anaerobic digestion (AD) network is under serious pressure. Rising food waste volumes, limited plant capacity, delays to infrastructure investment, and the roll-out of Simpler Recycling rules are creating a perfect storm for the waste industry and businesses that rely on regular food waste collections.
With suppliers now introducing overweight charges and warning of future disruption, the UK risks a growing food waste crisis unless urgent action is taken.
This blog explores why AD plants are struggling, what the impact will be for businesses, how Simpler Recycling is accelerating demand, the possibility of converting food waste to energy, and what needs to happen next.
What anaerobic digestion plants do
and why they matter
Anaerobic digestion is one of the most environmentally friendly ways to recycle food waste. In oxygen-free tanks, bacteria break down organic materials to produce biogas and digestate, both valuable resources. Biogas can be turned into renewable energy. Digestate can be used as a nutrient-rich fertiliser.
The UK sends 36 million tonnes of organic waste to AD plants every year. These facilities play a critical role in:
- diverting food waste from landfill
- reducing methane emissions
- supporting the circular economy
But the system is reaching breaking point.
The UK’s AD capacity
is under severe strain
There are 756 operational AD plants in the UK, but that number masks a growing issue. According to ADBA, more than 160 plants will lose subsidy support in the next five years, and over 400 more could lose support in the five years after that. Some smaller plants face closure as a result.
Falling wholesale energy prices have also reduced revenue for operators, meaning many AD plants are struggling financially at the very moment demand is rising.
This pressure is already filtering down to businesses.
Suppliers introducing overweight charges
due to AD bottlenecks
One major supplier has already introduced a new overweight charge from 1 November 2025. Customers now face:
- A specific weight limit
- An overweight charge for every extra kg
They stated that the decision is driven by:
- Limited capacity at UK AD plants
- Rising gate fees
- Surging food waste volumes from Simpler Recycling reforms
- Delays in UK-wide AD investment
While this is only one example, it signals a wider industry trend. As capacity tightens, more suppliers may follow, meaning businesses could see:
- Higher collection costs
- More weight-based charging
- Restrictions on collection volumes
- Fewer available collection slots
Why Simpler Recycling is accelerating
the capacity problem
The first phase of Simpler Recycling came into effect earlier this year. Businesses with ten or more full-time employees must now:
- separate dry recyclables
- arrange separate food waste collections
- use dedicated containers
For many organisations, this has increased the amount of food waste being collected, exactly as intended. But without enough AD capacity to handle this extra volume, the pressure is building fast.
The challenge will deepen in March 2026, when local authorities begin rolling out similar rules for households. Millions more food waste caddies will be collected weekly and sent to AD plants that are already close to capacity.
Without new plant investment, expansion or modern upgrades, the system simply cannot absorb the rise in demand.
What this means
for businesses
The impacts are already visible, and they will intensify as Simpler Recycling expands.
1. Rising collection charges
More AD plants charging higher gate fees means suppliers must pass these costs on to businesses. Weight-based charges, contamination charges and overweight surcharges are all likely to become more common.
2. Reduced collection availability
In areas with restricted AD capacity, businesses may face:
- fewer options for food waste contractors
- reduced frequency of available collections
- slower response times
- longer lead times for new contracts
3. More waste diverted to incineration or landfill
If AD plants continue to hit capacity, food waste that should be recycled could instead be sent to:
- energy-from-waste facilities
- landfill sites (as a last resort)
This undermines circular economy goals and increases carbon impacts.
4. Pressure on hospitality, food production and retail
Sectors producing high volumes of unavoidable food waste will feel the disruption first. This includes:
- restaurants
- takeaways
- supermarkets
- hotels
- food manufacturers
Inefficient or inconsistent collections quickly create storage problems and increase contamination risks.
Expert insight:
why investment is critical
Mark Hall, Food Waste expert at Business Waste commented:
This highlights a core issue: policy reform is outpacing infrastructure investment.
What happens if capacity
continues to fall?
If AD plant closures or slowdowns continue, the UK could face:
- higher food waste bills for businesses
- reduced national recycling rates
- increased food waste incineration
- pressure on landfill sites
- environmental and reputational risk
- waste movement across borders
Mark Hall expands:
Possible solutions for preventing
a food waste crisis
1. Immediate financial support for existing plants
Subsidy replacement, grants or temporary incentives would prevent more closures.
2. Investment in new AD capacity
Especially in regions with insufficient coverage.
3. Adoption of new technologies
Dry AD and micro AD units could decentralise processing and reduce pressure on large plants.
4. Better food waste reduction strategies
Businesses should focus on:
- portion control
- smarter stock management
- donation pathways
- staff training
5. On-site or localised composting
Some organisations can use composting solutions to reduce reliance on AD.
Expert insight:
the need for strategic planning
Mark Hall adds:
How businesses can stay
ahead of disruptions
Until new AD capacity is built, businesses should:
- understand their collection limits
- reduce food waste at the source
- avoid contamination risks
- audit internal food waste processes
- work with brokers who can access multiple suppliers
Many UK businesses already rely on food waste collection experts to ensure collections stay reliable despite industry constraints.
Final thoughts
The UK is heading toward a food waste capacity crunch. AD plants are essential to meeting environmental goals, but without urgent investment, Simpler Recycling reforms may overwhelm the system.
Businesses can protect themselves by reducing food waste at the source, using efficient collection methods and working with industry experts who can secure reliable service even when capacity tightens.
If you want guidance on food waste collections or reducing your food waste costs, contact us or call 0800 211 8390.
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