Market Challenges: High initial investments

The high initial investments required for setting up food waste management infrastructure and facilities is a major restraint for the growth of the global food waste management market. Establishing collection, processing and disposal systems for food waste involves heavy capital expenditure. Businesses have to invest in separate collection bins, transportation vehicles, processing plants and advanced technologies for sorting, treating and converting food waste into useful byproducts.

For instance, setting up an anaerobic digestion plant that can process 100 tons of food waste per day requires an initial investment of over USD 10 million. Similarly, implementing automation and smart bin systems for smart sorting of food waste from other waste streams in large commercial kitchens, hotels and restaurants necessitates incurring heavy equipment and technology installation costs. The payback period for such investments is also long given the nascent stage of development of organized food waste management globally. This deters many businesses, especially Small and Medium Enterprises (SMEs) from proactively participating in formal food waste management activities.

Market Opportunities: Partnerships with food service companies and retailers

Partnerships with food service companies and retailers present a tremendous opportunity in the global food waste management market. Food service businesses like restaurants, cafes, caterers and retailers play a major role in food production and distribution.

Collaborating with these entities could help curb huge quantities of waste. Many food chains and grocery stores often throw away food that could still be consumed, due to factors like aesthetic standards, poor forecasting or inappropriate stocking. Partnering with waste management firms allows companies to redirect this edible excess to food banks or community programs, rather than sending it to landfills. Some businesses have found success with such alliances - it improves their public image as sustainable brands while helping feed more people from existing resources.