Tomra Systems Boston Consulting Group Matrix

Metals Recycling Solutions is a shining Star for TOMRA Systems. Despite a challenging environment for plastics recycling, TOMRA's metals segment, particularly aluminum, has shown robust growth. This segment is benefiting from strategic investments like the planned rollout of AUTOSORT™ PULSE systems with LIBS technology in 2025, enhancing their advanced aluminum sorting capabilities.

The strong demand for recycled aluminum, driven by global decarbonization efforts, is a key factor fueling this Star's performance. This trend is expected to continue, solidifying metals recycling as a critical growth engine for TOMRA. For instance, the global aluminum recycling market was valued at approximately USD 38.5 billion in 2023 and is projected to reach over USD 50 billion by 2030, indicating significant expansion opportunities.

TOMRA's Food sorting solutions are a prime example of a 'Star' within the BCG Matrix. This segment experienced a significant 16% revenue increase in Q1 2025, accompanied by record EBITA, driven by the food processing industry's demand for greater efficiency and stricter food safety. The market for sophisticated food sorting technology is expanding, and TOMRA's AI-powered innovations, such as LUCAi™, solidify its leading position.

The company's advanced AI and deep learning applications, like the GAINnext™ platform for plastics and wood waste, are also Stars. This technology significantly improves sorting accuracy, particularly for challenging waste streams, and is a key driver of growth in the recycling sector. TOMRA's continued investment in these advanced solutions indicates a rapidly growing market with strong adoption rates.

Metals Recycling Solutions, especially for aluminum, is another Star for TOMRA, demonstrating robust growth despite challenges in plastics recycling. Strategic enhancements, including the planned 2025 rollout of AUTOSORT™ PULSE systems with LIBS technology, are boosting their advanced aluminum sorting capabilities. The increasing global demand for recycled aluminum, spurred by decarbonization initiatives, is a major contributor to this segment's success, projected to continue fueling TOMRA's growth.

TOMRA's multi-feed Reverse Vending Machines (RVMs), such as the TOMRA R1, represent Stars by efficiently handling large volumes of containers, encouraging higher consumer participation and return rates. This innovation meets the growing consumer preference for convenient recycling and reinforces TOMRA's market leadership in the consistently expanding RVM sector. Digital solutions like TOMRA Insight and the PolyPerception waste analyzer are also Stars, leveraging real-time data and AI to optimize sorting efficiency and address the increasing demand for intelligent waste management, positioning TOMRA strongly in the high-growth smart waste management market.

TOMRA's sensor-based sorting technologies are true cash cows, consistently bringing in substantial revenue. With more than 11,200 systems already installed worldwide, these proven solutions are a reliable source of steady cash flow for the company. Their strong performance is fueled by the ongoing, critical need for efficient waste recovery and better resource management across the global recycling sector.

TOMRA's established Reverse Vending Machine (RVM) operations are a prime example of a Cash Cow, with over 87,000 installations globally. These mature systems process billions of containers annually, generating predictable and substantial cash flow with minimal new capital investment.

The Collection segment remains TOMRA's largest and most profitable, contributing significantly to steady cash generation despite a minor revenue dip in Q1 2025. Improved gross margins highlight its strong cash-generating capabilities, ensuring continued profitability.

TOMRA's sensor-based sorting technologies, with over 11,200 systems installed, are also cash cows, providing substantial and consistent revenue. This is driven by the critical global need for efficient waste recovery and resource management.

The service and maintenance division, crucial for TOMRA's installed base, generates significant recurring revenue through long-term contracts. This predictable income stream, which represented a substantial portion of sales in 2023, is vital for the company's financial stability and customer retention.

Niche recycling applications, while potentially innovative, often struggle with market adoption. These might include specialized electronics recycling or specific types of industrial waste processing that haven't gained significant traction. For instance, in 2024, recycling rates for certain complex electronic components remained below 15%, indicating a nascent market.

These segments can represent a drain on resources if they have low market share and limited growth potential. Tomra's portfolio might include solutions for these areas, but their contribution to overall revenue could be minimal. A company might see less than 5% of its total revenue coming from such niche recycling streams in 2024.

Divesting or deprioritizing these niche applications is a strategic move to focus capital on more promising areas. This allows for better resource allocation, ensuring that investments are directed towards segments with higher growth prospects and greater market penetration, ultimately improving portfolio efficiency.

Tomra Systems' European plastics recycling segment operates as a Dog due to macroeconomic headwinds and postponed customer investments, leading to soft order intake. The outlook for this sector remains subdued with no anticipated recovery in 2025, firmly positioning it as a low-growth, challenging market. This localized weakness directly impacts Tomra's revenue and profitability.

Legacy sorting equipment also represents potential Dogs. These older models face declining sales as newer technologies emerge, potentially generating low revenue while requiring significant resources for maintenance. Divesting or deprioritizing these legacy systems allows for better capital allocation towards more promising product lines.

Niche recycling applications, such as specialized electronics recycling, may also be Dogs if they struggle with market adoption and have limited growth potential. In 2024, recycling rates for certain complex electronic components remained below 15%, indicating nascent markets that could drain resources if market share is minimal.

The profitability of recycling operations, especially for plastics and metals, is heavily influenced by commodity price fluctuations. Periods of low virgin plastic prices, for example, reduce the economic incentive for recycled content, impacting pricing power and potentially turning these segments into cash traps.

TOMRA's investment in PolyPerception, a waste analysis start-up, highlights a strategic move into AI-driven real-time waste monitoring. This aligns with the company's potential to develop future Stars by investing in high-growth technological areas, even though these ventures often start with a low market share and require significant development.

TOMRA's ventures into new Deposit Return System (DRS) markets, like Poland and Portugal slated for 2025, represent significant growth opportunities for its Collection segment. These emerging markets, while holding substantial potential, currently see TOMRA with a relatively low market share, necessitating upfront investment to establish a strong presence.

The Rotake system, launched in early 2024 for reusable takeaway packaging, and the X-TRACT™ for wood waste, highlighted at LIGNA 2025, are positioned as Question Marks. Both require substantial investment in market education and customer adoption to build awareness and penetrate their respective niche markets, despite their alignment with circular economy trends and proven technologies.

TOMRA's investment in AI-driven waste monitoring via PolyPerception also falls into this category. These strategic, high-growth technology investments often begin with low market share and demand significant development capital, aiming to cultivate future Stars.

Developing markets for automated food processing solutions, particularly in regions like Southeast Asia and Africa, also present Question Mark characteristics for TOMRA. The African food and beverage market was projected to reach USD 178.5 billion in 2024, with automation being a key growth driver, yet TOMRA's penetration in these specific niches remains nascent.