Global levels of food waste continue to increase, and the US alone has seen food waste triple over the past 50 years. Consumers have noticed and have begun voicing their concerns and increasingly taking action by demanding attention from corporations and regulatory bodies.
Both the United Nations and the United States government have set the goal of halving food waste by 2030. This all bodes well for a group of companies that are attempting to create a business out of food waste. The food waste management tech ecosystem includes developers of products that 1) prevent food wastage (i.e reduce the volume of surplus food), 2) optimize food surpluses (resale or donation of food waste and oversupply), and 3) recycles waste for food, beverages, animal feed, or industrial use.
Recycling startups account for more than one-third of food waste industry disruptors and incumbents. The majority of these companies focus on recycling food waste into edible food and beverages. Despite having attracted the least amount of funding, these players are at either the early or growth stages of product development and customer acquisition.
Businesses focusing on redistributing surplus food via online platforms represent 33% of the industry’s disruptors and incumbents with several such as Misfits Market and Hungry Harvest reaching relatively high levels of brand awareness.
Waste prevention technology is a highly funded segment of the industry, after redistribution, with funding of around USD 623 million as of March 2021. The majority of these providers offer edible coating, smart packaging, or tracking systems to manage and prevent waste in the early stages of the food supply chain.
Most food waste industry incumbents are already established as providers of general waste management services and are now developing smart waste management techniques that involve recycling or redistributing food waste. Some leading food industry companies are also starting to adopt food recycling methods to prevent wastage including Kellog’s, Tyson Foods, Kroger, and Unilever.
There is a lack of incumbent activity in the food prevention technologies or online platform spaces, implying that these are still emerging trends within the industry. However, major IT firms like IBM are developing smart waste management solutions.
Overall, incumbents mostly appear to be developing their food waste management services in-house, although there are a few notable partnerships and acquisitions.
By using this site, you agree to allow SPEEDA Edge and our partners to use cookies for analytics and personalization. Visit our privacy policy for more information about our data collection practices.