The global food waste management market, with a 5.60% CAGR, is projected to grow from USD 78.880 billion in 2025 to USD 103.602 billion by 2030.
USEPA defines “food waste” as food that was not consumed for its original purpose and is handled in a variety of ways, including a donation to feed the hungry, production of animal feed, anaerobic digestion, composting or disposal in landfills or combustion facilities. Globally, food waste has become a major ecological as well as economic problem over the last decade. Therefore, sustainable food waste management has become extremely crucial. Food waste management is the process through which food and other agricultural products can be salvaged or diverted for use as animal feed, human consumption, industrial byproducts, or for environmental benefits.
Food is wasted at every stage of the food supply chain, from agricultural production to retail and consumer levels. A large amount of food ends up in landfills, where it rots and emits greenhouse gases. Restaurants, cafeterias, supermarkets, the food service industry, residential areas, etc., are the primary sources of food waste. Hunger affected approximately 821 million people in 2021, according to U.N. data. Yet, over 1.6 billion tonnes, or about one-third, of the food produced each year that is meant for human consumption is lost or wasted, which could feed almost 3 billion people. This food waste is worth over USD 1 trillion. Around 4,4 gigatonnes of greenhouse gas emissions are generated each year by food loss and waste.
Therefore, the global food waste management market is driven by the growing amount of food waste. Other factors, such as rising consumer awareness, growing government, as well as regulatory policies, and rising initiatives by commercial establishments in the food industry to ensure sustainable disposal, are also contributing to the growth of the global market during the analysis period.
However, the lack of awareness regarding food waste management in developing countries, along with the high cost, is obstructing the growth of the global market. Global food waste management is segmented into various categories, which include type, source, application, and geographical location.
According to the World Biogas Association report, the yearly costs of food waste to the world economy in terms of economic, environmental, and social impact are over USD 2.6 trillion. According to the National Resources Defense Council, the typical American household wastes US$1,500 worth of food annually. The FAO data shows that food waste would cost the economy $150 billion in health-related expenses.
Food waste not only has a severe economic impact but also has adverse effects on the environment. Food waste ultimately results in the loss of one-fourth of the global water supply. An estimated USD 2.6 trillion is spent on food waste globally, of which USD 1 trillion is spent on greenhouse gas emissions, water scarcity, biodiversity loss, increased conflicts, and loss of livelihood due to problems like soil erosion, nutrient loss, reduced yields, wind erosion, and pesticide exposure. Food waste contributes 4.4 gigatonnes of CO2 equivalent per year, or 8 percent of all anthropogenic greenhouse gas emissions. Therefore, the implementation of food waste management solutions has become extremely crucial to reduce the environmental, economic, and social costs of food waste.
One of the first steps of food management is to reduce the amount of food waste generated. Therefore, various government organizations have implemented regulatory policies and taken up initiatives to encourage food waste prevention. For instance, in March 2019, the Delhi government drafted a policy to prevent food from being wasted during social events in the nation's capital. The proposed regulation states that to handle excess and leftover food for distribution to the disadvantaged, all event planners and caterers must register with NGOs.
The U.S. Department of Agriculture and the Environmental Protection Agency have implemented the U.S. 2030 Food Loss and Waste Reduction scheme to minimise food loss and waste. By 2030, the objective is to reduce food loss and waste by half. By pursuing this objective, the United States can lessen the negative effects that food loss and waste have on the climate and the environment, improve food security, and enable households and companies to save money.
Partnerships between grocery stores, food banks, and other community organisations can not only reduce food waste but also feed the most disadvantaged members of society. For instance, Tesco has partnered with UK-based nonprofit FareShare FoodCloud to donate food to the impoverished UK population. Through Food Cloud Charities, Tesco donated food worth 275,000 euros in 2021.
The North American region is anticipated to hold a significant amount of market share in food waste management. Key determinants contributing to food waste management in North America include damage to food items, overproduction, a lack of cold-chain infrastructure, strict standards for food grading, uniform date labelling techniques, and fluctuating consumer demand. The high amount of food waste generated in countries like the United States is also spurring growth in his region. According to official data, in the US, 119 billion pounds of food are wasted annually, or 40 percent of the total food produced. Favourable government initiatives to encourage food management systems are also driving growth in this region. For instance, by 2030, the United States Department of Agriculture and Environmental Protection Agency planned to cut food waste by 50%.
Food Waste Management Market Segmentation: