The global food waste management market was valued at USD 35.86 billion in 2020 and is expected to grow at a CAGR of 5.6% during the forecast period. Rising concerns over waste across the globe, increasing preference for recreational foods among millennials, and the rising number of eatery chains and restaurants in emerging economies are key factors responsible for the management market growth.
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Consumer’s rising preference towards tropical fruits, imported processed food, and premium beverages also complement management market growth. Moreover, the rising trade of ingredients among countries led to the emergence of new robust supply chain networks which increased wastage. To reduce this, government and management bodies across the globe have put stringent regulations, thereby boosting the management market growth.
According to the study done by the Food and Agriculture Organization (FAO), around one-third of the world’s total food is either wasted or lost, amounting to 1.6 billion tons. The wastage has accounted for around 4.4 GT of carbon dioxide emissions every year, which is around 8 percent of total GHG emissions.
The market is primarily segmented on the basis of by waste type, by process, by source, by application, and geographic region.
By Waste Type
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In 2020, the anaerobic digestion management segment accounted for the largest share. This is due to the fact that anaerobic digestion uses a lower number of pathogens, which enables it to restrict the spread of odor, and promotes sanitation. This process enables the recovery of energy and nutrients, thus leading the management market growth.
Incineration technology is being used in several types of waste, saving segregation time and cost. The incineration process involves the burning of waste to convert into ashes. It is widely used in Japan, Sweden, and Denmark to use into generating electricity.
The aerobic digestion management segment is projected to witness a lucrative growth rate over the study period. This is due to the fact that compost obtained is used as fertilizer, which includes essential nutrients such as nitrogen, potassium, and phosphorus. These aerobic digesters cause natural decomposition, incur less cost, and comparatively more effective.
Other processes include pyrolysis, gasification, landfill, and liquefaction. A landfill is a traditional method, in which it is transported to the dumping site and compacted with a bulldozer. Though, such practice is banned in most countries, as there is the possibility of parasitic and gastrointestinal diseases.
In 2020, the municipalities segment accounted for the largest revenue share. Changing lifestyles and the burgeoning population are the primary factors attribute to such a high share, as households generate daily waste. Household food wastage is caused by improper food storage capabilities, excess food, and excessive shopping.
Waste generated from distributors spoils mainly due to spoilage of meat and dairy products due to change in climate conditions, improper storage facilities and management. Bulk orders and unsold stock in the supermarkets contribute significantly to food waste management.
The food services segment is projected to witness a lucrative growth rate over the waste management study period. This is due to several factors such as overstocking, spoilage, inefficient production, expiration, and over-production of food items at the hotels, food chains, and eateries. Food waste generated during the distribution services also accounted for the majority of food waste. Human error, improper storage facilities, and adequate staff training usually contribute to waste management market growth.
In 2020, the animal feed market segment accounted for the largest revenue share. Food waste if safely stored, could be used as animal feed, without incurring any additional costs in comparison to other management techniques. The biofuel segment is projected to register the highest market growth over the study period. This is on account of fluctuating crude oil prices, and a rising focus on clean energy sources.
Moreover, favorable government regulations towards the application of biofuel as combustion fuel expected to drive the market forward. Waste undergoes anaerobic digestion for power production, such as solar and wind. The utilization of waste in the power consumption industry contributes significantly to the segment’s market growth prospects.
Europe market is the largest revenue contributor followed by North America and the Asia Pacific region. In 2020, the Europe region accounted for over 30% of the global market. Improper management, negligence, and overproduction are the primary factors responsible for the region’s market growth. EU states have implemented systems that aim at reducing waste at source and follow proper disposal mechanisms for biogas and fertilizer production.
Asia Pacific market is projected to achieve a lucrative growth rate over the assessment period. This is due to high export to the developed nations, thereby increasing the chances of wastage during transit. Respective countries in the region are investing heavily in cold chain logistics for waste reduction and management. Moreover, the lack of stringent regulations in South Asian countries and poor logistics and storage infrastructure also contributed to the region’s market growth prospects.
The prominent market players operating in this waste management market are Veolia, Suez, Waste Management, Inc., Republic Services, Inc., Covanta Ltd., and Stericycle, Inc. The companies are introducing new techniques to manufacture byproducts from the waste for contamination management.