In CPI's 2008 State of Trade report, Peter Seggie, recovered paper sector manager, said smaller volumes will be available for collection from already secured sources.
"If tonnage levels are to be maintained, more sources will be required. This will have a significant knock-on effect for costs and quality controls for collectors," he said.
He added that it may be made more difficult if demand from global paper mills falls further, as this will suppress collector's income.
CPI estimated the 2008 UK consumption of paper and board flowing into the UK waste stream reduced by 7% to 13.15m tonnes, compared with 2007.
Seggie described 2008 as a rollercoaster year, with significant growth over the first half followed by a decline in numbers for the later months as collection slowed.
"This was influenced by falling consumption of paper and board products in the UK and over the later part of the year by falling demand from the Far East and domestic mills," he said.
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CPI reports decline in UK paper and board production