Food Waste Valorization Market Forecasts to 2032 – Global Analysis By Type of Food Waste (Agricultural Waste, Food Processing Waste and Household & Retail Waste), Valorization Technology (Anaerobic Digestion, Composting, Fermentation, Enzymatic Hydrolysis

According to Stratistics MRC, the Global Food Waste Valorization Market is accounted for $58.7 billion in 2025 and is expected to reach $85.9 billion by 2032 growing at a CAGR of 5.6% during the forecast period. Food waste valorization converts food industry by-products and discarded organic waste into valuable products such as biofuels, animal feed, fertilizers, or biochemicals. This process addresses environmental challenges from food waste accumulation while contributing to circular economy models. Techniques include anaerobic digestion, fermentation, enzymatic treatment, and chemical extraction, enabling the recovery of energy, nutrients, and functional compounds. Applied in agriculture, energy, and chemical industries, food waste valorization improves sustainability, reduces greenhouse gas emissions, and enhances resource efficiency, contributing to global efforts toward waste reduction and renewable resource utilization.

According to the Food and Agriculture Organization of the United Nations (FAO), one-third of consumable food produced for human utilization is estimated to be wasted or lost, equivalent to 1.3 billion tonnes annually.

Market Dynamics:

Driver:

Global push to reduce food waste and GHG emissions

The global imperative to mitigate climate change is a primary market driver, compelling governments and corporations to adopt stringent sustainability mandates. Policies like the UN SDGs and the EU’s Farm to Fork Strategy directly incentivize waste valorization by setting concrete reduction targets and penalizing landfill disposal. This regulatory pressure, coupled with corporate ESG commitments, transforms food waste from a disposal liability into a valuable resource for circular economy models. Additionally, the direct link between decomposing organic matter in landfills and methane generation underscores the critical role of valorization in achieving significant GHG emission reductions, thus accelerating market adoption.

Restraint:

High logistics and preprocessing costs

A significant barrier to market expansion is the substantial capital and operational expenditure required for the collection, transportation, and initial processing of heterogeneous food waste. The logistical network for gathering dispersed waste streams is complex and cost-intensive, necessitating specialized handling and refrigeration to prevent spoilage. Moreover, preprocessing steps such as sorting, cleaning, and size reduction are essential yet add considerable operational overhead. These high upfront costs can deter investment, particularly for small-to-medium enterprises, and challenge the economic viability of valorization projects compared to traditional low-cost disposal methods like landfilling.

Opportunity:

Integration into smart city waste systems

IoT-enabled smart bins can optimize collection routes, reducing logistics costs and improving efficiency. Advanced data analytics can forecast waste generation patterns, allowing for better planning of preprocessing and conversion facility operations. This digital integration creates a centralized, intelligent waste management ecosystem that enhances the economic feasibility of valorization. It also enables municipal authorities to track progress towards sustainability goals in real time, fostering further public and private investment.

Threat:

Public perception and safety concerns

Market growth is threatened by public apprehension regarding the safety and quality of products derived from waste streams, particularly in applications like animal feed and biofuels. Concerns about potential contaminant transfer, such as pathogens or heavy metals, can trigger stringent regulatory hurdles and slow approval processes for new technologies. Moreover, the ""waste-to-product"" concept may face consumer resistance and a lack of social acceptance, stigmatizing end-products and limiting their market penetration. This negative perception can deter brand association and investment, posing a significant risk to the commercialization and scalability of innovative valorization technologies.

Covid-19 Impact:

The Covid-19 pandemic initially disrupted the food waste valorization market through supply chain paralysis, lockdowns, and the temporary closure of food service establishments, which altered waste generation patterns and volumes. Project delays ensued due to social distancing mandates and capital reallocation. However, the crisis also heightened awareness of supply chain vulnerabilities and the importance of sustainable, localized resource management. This has accelerated long-term policy support and investment in circular economy models as a means of building resilience, ultimately fostering a more robust recovery and growth trajectory for the market post-pandemic.

The agricultural waste segment is expected to be the largest during the forecast period

The agricultural waste segment is expected to account for the largest market share during the forecast period due to the immense volume of by-products generated at the farm and post-harvest stages. This includes crop residues, spoiled produce, and processing waste from industries like dairy, poultry, and horticulture. The segment's dominance is fueled by the high concentration of organic material, which is highly amenable to various valorization technologies such as anaerobic digestion and composting. Additionally, the agricultural sector faces increasing regulatory pressure to manage its waste sustainably, further driving adoption and solidifying this segment's leading market position.

The anaerobic digestion segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the anaerobic digestion segment is predicted to witness the highest growth rate. This is attributed to the technology's dual-output advantage, producing both renewable energy (biogas) and nutrient-rich digestate, enhancing its economic appeal. Stringent government policies promoting renewable energy sources and organic waste diversion from landfills are key growth catalysts. Moreover, continuous technological advancements improving process efficiency and methane yield make anaerobic digestion an increasingly viable and attractive solution for large-scale industrial and municipal food waste processors, fueling its rapid adoption.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share, driven by its massive population, rapid urbanization, and escalating volumes of municipal and agricultural waste. Governments in China, India, and South Korea are implementing stringent waste management regulations and investing heavily in waste-to-energy infrastructure to address landfill overcrowding and severe pollution. Furthermore, the growing industrial sector and increasing governmental focus on developing a circular economy create fertile ground for valorization technologies. This combination of high waste volume and strong regulatory impetus cements the region's dominant share.

Region with highest CAGR:

Over the forecast period, the Europe region is anticipated to exhibit the highest CAGR due to its exceptionally robust regulatory framework, including the Circular Economy Action Plan and the Landfill Directive, which aggressively mandate organic waste recycling and penalize disposal. High levels of technological adoption and significant government funding for innovative bioeconomy projects provide a strong foundation for growth. Moreover, well-established waste collection infrastructure and intense consumer and corporate focus on sustainability accelerate the deployment of advanced valorization solutions, positioning Europe as the fastest-growing market.

Key players in the market

Some of the key players in Food Waste Valorization Market include Veolia Environnement S.A., SUEZ Group, Waste Management, Inc., Republic Services, Inc., Clean Harbors, Inc., Stericycle, Inc., FCC Environment Ltd., Advanced Disposal Services, Inc., The Waste Transformers, Winnow Solutions, Rendisk, Organic Waste Systems, Harvest Power, The Coffee Cherry Co, Fruitleather, and Rubies.

Key Developments:

In October 2024, Veolia launched an advanced depackaging facility in Australia for Woolworths, processing up to 15,000 tonnes of packaged food annually. The facility automatically separates expired packaged food from packaging, enabling food conversion into compost and packaging recycling.

In June 2024, SUEZ has partnered with AFYREN to upcycle municipal organic waste into natural, low-carbon ingredients using unique fermentation technology. This collaboration supports the creation of value from organic waste.

In March 2024, SUEZ partnered with AFYREN in a collaboration to develop new ways of creating value from organic waste. The initiative focuses on converting organic waste collected by SUEZ into natural, low-carbon ingredients using fermentation technology.

Type of Food Wastes Covered:
• Agricultural Waste
• Food Processing Waste
• Household and Retail Waste

Technologies Covered:
• Anaerobic Digestion
• Composting
• Fermentation
• Enzymatic Hydrolysis
• Other Emerging Technologies

Applications Covered:
• Biofuels and Bioenergy
• Animal Feed
• Fertilizers and Soil Amendments
• Food Ingredients and Additives
• Bioplastics and Packaging Materials
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements Show more