Organic Waste Recycling Market Report

Organic Waste Recycling Market Overview

The Organic Waste Recycling Market size was valued at USD 19.27 million in 2025 and is expected to reach USD 34.43 million by 2033, growing at a CAGR of 6.66% from 2025 to 2033.

The global organic waste recycling market encompasses the collection, processing, and conversion of organic waste—including food scraps, yard clippings, agricultural residues, and biosolids—into useful end products such as compost, biogas, animal feed, and soil conditioners. In 2023, the market processed approximately 460 million tonnes of organic waste globally. Composting accounted for 210 million tonnes, anaerobic digestion for 115 million tonnes, and waste-to-energy processes for 85 million tonnes. The remaining 50 million tonnes went through biogas-specific channels. That volume represents an increase of 9.7% over the prior year, reflecting emerging national mandates across more than 65 countries. Urban areas produced 270 million tonnes last year, with rural regions contributing 190 million tonnes. Compliance with organic diversion targets drove municipal activity: over 190 cities diverted 60% of their organic waste in 2023. Industrial facilities, including agriculture and food processing, generated 85 million tonnes, with 75% of this waste treated on-site or at local anaerobic digestion units. Private sector composting and recycling centers now number over 4,500 globally, and energy-producing facilities exceed 1,200 sites. The market supports over 340,000 jobs, including collection, processing, and distribution roles.

Key Findings

Driver: Stricter regulations mandating reduced landfill organic waste and higher recycling targets across 65 countries are the main catalyst for market growth.

Country/Region: Europe leads the market, having processed more than 148 million tonnes of organic waste in 2023, with Germany, France, and the UK processing 38 million, 25 million, and 22 million tonnes, respectively.

Segment: Composting dominates the market in volume terms, accounting for 210 million tonnes of recycled organic material in 2023.

Organic Waste Recycling Market Trends

The organic waste recycling market is witnessing several significant trends aligned with sustainability, technology adoption, and operational expansion. Increased regulatory pressure is driving larger participation by municipalities and foodservice industries. Over 190 cities achieved landfill diversion rates exceeding 60%, up from 155 in 2022. Municipal curbside composting now serves over 88 million households, increasing by 12% year‑on‑year. Composting remains the dominant treatment method, accounting for 210 million tonnes in 2023. In-vessel and aerated static pile systems are gaining popularity, with 1,200 in‑vessel units installed in 2023—up 22% from 2022. Yard waste composting facilities in North America and Europe processed 75 million tonnes, while urban food-waste systems handled 95 million tonnes. Anaerobic digestion grew with 115 million tonnes processed, generating 82 million cubic meters of biogas for municipal heating and electricity. Germany and the UK processed 32 million and 19 million tonnes, respectively, through digestion systems. Food and beverage industries in these countries now route 68% of waste through AD facilities. Waste-to-energy (incineration/gasification) processes handled 85 million tonnes of organic-rich streams—predominantly in East Asia, where 24 plants processed an average of 220,000 tonnes each. This treatment method aligns with urban waste-to-energy initiatives in 8 major cities.

Biogas upgrading into biomethane exceeded 4.8 billion cubic meters in 2023, serving over 15 million households. This shift supports circular economy mandates, particularly across Denmark and Sweden. Technological innovation is another trend. More than 45% of facilities now employ AI-enhanced sensors and robotics to sort food and yard waste with over 95% accuracy. Over 320 smart sorting systems were installed in 2023. Blockchain tracking platforms were tested in more than 20 pilot programs to enhance traceability and certification of compost quality. Private-sector investment is accelerating, with 112 new facilities announced in 2023—57 composting units and 32 anaerobic digestion sites—adding 18 million tonnes annual capacity. Urban and agricultural partnerships are increasing, with over 650 collaborations recorded between municipalities and waste service companies. In summary, key trends include rapid conversion of food waste, dominant composting volumes, growing anaerobic digestion, municipal diversion efforts, smart sorting adoption, and cross-sector investment—underscoring a maturing and expanding organic waste recycling market.

Organic Waste Recycling Market Dynamics

DRIVER

Regulatory mandates for landfill diversion

Stricter government regulations are driving higher investment in recycling infrastructure. In 2023, 23 countries implemented penalties for organic waste in landfill, resulting in a 14% increase in new facility construction. Municipal recycling targets reached 65–75% in Western Europe and North America. As a result, 210 million tonnes of composting capacity was utilized, and 115 million tonnes were fed into anaerobic digestion systems.

RESTRAINT

Infrastructure and capacity limitations

Despite regulatory pressure, infrastructure in emerging markets remains underdeveloped. In 31 lower-income countries, total organic recycling capacity was only 2.6 million tonnes in 2023, representing just 3% of global capacity. This shortfall leads to reliance on landfills. Private facility investment still faces barriers—initial capital for composting or AD plants ranges between USD 14 million and 61 million, inhibiting deployment in many regions.

OPPORTUNITY

Biogas and biomethane scaling

Biogas–to–grid projects are rapidly expanding. In 2023, over 420 biogas plants were operational, producing 4.8 billion cubic meters of upgraded biomethane. Denmark and the Netherlands led with 750 million m³ and 620 million m³ respectively. The potential for sustainable fuel and green heat makes AD plants attractive to investors.

CHALLENGE

Contamination and feedstock quality

A significant hinderance is high contamination. Over 17% of collected organic waste streams were rejected in sorting facilities due to non-compostable materials. In some regions, contamination reached 28%, reducing quality and increasing processing costs by 21%. Sorting system failure rates stood at 9%, leading to financial losses and compliance issues.

Organic Waste Recycling Market Segmentation

The organic waste recycling market is segmented based on treatment type and application, with each category reflecting varying processing technologies, infrastructure capacities, and end-use goals. These segments provide an overview of how different regions, industries, and municipalities address organic waste management and contribute to sustainable circular economies.

By Type

Composting: Composting remains the largest treatment segment by volume, with more than 210 million tonnes of organic waste processed globally in 2023. Aerobic composting methods—including windrow, aerated static pile, and in-vessel systems—dominate municipal and agricultural waste management systems. North America and Europe collectively accounted for 125 million tonnes, driven by strong residential participation and municipal composting mandates.
Anaerobic Digestion (AD): Anaerobic digestion treated approximately 115 million tonnes of organic waste worldwide in 2023. This method is primarily used for food waste, agricultural residues, and biosolids. AD plants are prominent in Europe and Asia, with Germany, the UK, China, and Japan leading installations. The process also generated over 4.8 billion cubic meters of biogas used for electricity and heating.
Biogas Recovery and Upgrading: Biogas produced from AD is increasingly upgraded to biomethane. In 2023, over 620 facilities worldwide purified biogas to grid-injectable quality, supporting energy networks in 15 countries. Upgraded biomethane contributed to powering over 15 million homes globally, with major contributions from France, Denmark, and Sweden.
Waste-to-Energy (WTE): Thermal processing of organic-rich waste (via incineration and gasification) handled approximately 85 million tonnes in 2023. Although less prioritized in regions with strict organic diversion laws, WTE remains prevalent in East Asia, where space constraints make landfilling and composting less feasible. Japan and South Korea processed 28 million tonnes combined through high-efficiency incineration systems.
Other Emerging Methods: Novel methods such as biochar pyrolysis, animal feed conversion, and enzymatic digestion collectively treated 50 million tonnes of waste in 2023. These methods are seeing rising adoption in industrial settings and high-contamination waste streams, offering value-added outputs such as carbon credits, pet food bases, and soil enhancers.

By Application

Municipal Waste Management: Over 260 million tonnes of organic waste were managed by city-level operations globally, supported by 88 million households enrolled in organic collection services.
Commercial & Industrial (C&I) Sector: Food production, hospitality, and retail businesses generated and treated around 95 million tonnes, often through on-site or third-party anaerobic digestion or composting units.
Agricultural Applications: Farm-based waste, including manure and crop residues, contributed 78 million tonnes to the organic recycling stream, mostly reused as compost or converted to biogas in rural systems.
Institutional Use (Schools, Hospitals, Airports): Institutions handled nearly 17 million tonnes, typically through contractor-run food waste dehydration or composting programs.

Organic Waste Recycling Market Regional Outlook

The organic waste recycling market exhibits varied growth dynamics across global regions. Each region shows distinct trends in technology deployment, public policy, urban participation, and waste generation volume, contributing uniquely to the global waste management ecosystem. In 2023, more than 460 million tonnes of organic waste were processed worldwide through composting, anaerobic digestion, and biogas recovery technologies, with regional contributions shifting due to policy, infrastructure, and urbanization trends.

North America

In 2023, North America processed over 135 million tonnes of organic waste, with the United States alone accounting for approximately 105 million tonnes. Municipal solid waste programs covered organic separation for over 62 million households, with 410 municipal composting centers operating across 45 states. California, New York, and Washington implemented stricter composting mandates that led to a 22% year-over-year increase in collected food and yard waste. Canada processed 28 million tonnes, with provinces like Ontario and British Columbia enforcing mandatory organic diversion for commercial entities. The region saw the installation of 94 new anaerobic digestion units, which collectively generated more than 1.1 billion kilowatt-hours of energy in 2023.

Europe

Europe remains the most advanced region for organic waste recycling, processing around 158 million tonnes of waste in 2023. Germany, France, and the Netherlands led regional efforts, with Germany alone managing over 43 million tonnes of organic material. The European Union’s Circular Economy Action Plan and its revised Waste Framework Directive contributed to over 750 municipal composting facilities and 260 biogas upgrading plants. In 2023, more than 82% of EU member states implemented source-separation rules for organic waste, increasing recycling efficiency and compost quality. The EU also produced approximately 2.1 billion cubic meters of biomethane in 2023, enough to serve 11 million households.

Asia-Pacific

Asia-Pacific experienced substantial growth in organic waste recycling infrastructure, processing over 105 million tonnes in 2023. China and India contributed a combined 69 million tonnes, supported by public-private partnerships and urban waste initiatives. China expanded its food waste-to-energy pilot program to 51 cities, managing over 27 million tonnes via anaerobic digestion. India implemented organic composting programs in 320 tier-2 and tier-3 cities, accounting for 18 million tonnes of diverted waste. Japan and South Korea added 38 new high-temperature composting units, collectively recycling 7.8 million tonnes of kitchen and agriculture-derived waste. Urbanization, agricultural surplus, and landfill constraints continue to drive policy and investment momentum in this region.

Middle East & Africa

The Middle East & Africa region processed an estimated 26 million tonnes of organic waste in 2023, with South Africa, the UAE, and Egypt being the top contributors. South Africa recycled approximately 6.2 million tonnes of food and garden waste through 52 composting facilities, while Egypt handled 4.8 million tonnes via decentralized anaerobic digesters in rural communities. The UAE converted 3.5 million tonnes into renewable energy at state-supported waste-to-energy plants. In Sub-Saharan Africa, the development of 34 composting and vermiculture sites handled a combined 2.3 million tonnes, offering employment to over 3,800 people. The region is heavily supported by international development funding, with more than 17 pilot projects underway across Kenya, Nigeria, and Ghana.

List Of Organic Waste Recycling Companies

Veolia Environnement S.A. (France)
SUEZ Group (France)
Waste Management, Inc. (USA)
Republic Services, Inc. (USA)
Cleanaway Waste Management Limited (Australia)
Biffa plc (UK)
Covanta Holding Corporation (USA)
Remondis SE & Co. KG (Germany)
Stericycle, Inc. (USA)
Recology (USA)

Veolia Environnement S.A. (France): Veolia processed over 39 million tonnes of organic waste globally in 2023, operating across more than 30 countries. The company runs 580 recycling and recovery facilities, including 120 specialized composting and anaerobic digestion units. Veolia also generated more than 1.3 billion cubic meters of biogas across its European and Asian plants, supporting grid energy needs in 14 nations.

Waste Management, Inc. (USA): Waste Management handled approximately 34 million tonnes of organic waste in 2023 across North America. It owns and operates 95 composting and anaerobic digestion plants, with 14 new facilities added in the last year. The company supplies over 420 million kilowatt-hours of energy from its organic recycling operations annually and manages more than 2.5 million tonnes of food waste through its commercial client network.

Investment Analysis and Opportunities

Global investment in the organic waste recycling market is rising rapidly, with new projects and facility expansions valued at multi-billion dollar scales. In 2023 alone, over 150 new recycling projects were announced or initiated across 42 countries, targeting composting, anaerobic digestion, and biogas production infrastructure. More than $2.1 billion equivalent in municipal contracts were awarded globally for food and yard waste diversion. Public-private partnerships (PPPs) are expanding. In the Asia-Pacific region, 27 new partnerships were recorded in 2023, primarily in India, Vietnam, and Indonesia, aimed at tackling more than 35 million tonnes of organic municipal waste. The Indonesian government committed 20 city-level composting centers, while India issued tenders for 8 anaerobic digestion plants, each handling 40,000 tonnes annually. Corporate investments are also accelerating. In 2023, 16 major corporations invested in decentralized organic waste recycling to meet sustainability targets. Over $420 million equivalent was deployed into on-site biogas and compost units in food processing, hospitality, and agribusiness sectors. McDonald’s franchisees collectively processed 65,000 tonnes of food waste on-site in 2023 alone. Biogas production for renewable energy is the fastest-growing investment segment. More than 820 million cubic meters of new biogas capacity was added globally in 2023. In Europe, France and the Netherlands launched 19 new biogas grid-injection stations, supplying 190,000 homes with renewable heat. In the U.S., 18 utilities signed purchase agreements to source renewable gas from anaerobic digestion facilities. Technology-oriented investments also increased, with over 220 AI and IoT-enabled sorting systems deployed to increase contamination detection and recovery efficiency. These systems reduced contamination rejection rates by up to 15%, enabling cleaner compost and feedstock processing. Emerging regions like Sub-Saharan Africa received investment support from multilateral development banks, enabling 34 small-scale composting units across 5 countries. These projects collectively divert 180,000 tonnes of organic waste annually and employ 3,800 local workers. Government incentives are driving further capital inflows. In 2023, 18 countries offered tax benefits, feed-in tariffs, or compost quality certifications. The UK’s Renewable Heat Incentive and Japan’s Biogas Feed-in Law contributed to the commissioning of 25 new plants.

New Product Development

Product development in the organic waste recycling market has seen a shift toward enhanced composting technologies, cleaner biogas generation, and decentralized modular units tailored for urban and rural use. In 2023, more than 58 new systems and process solutions were launched across commercial, municipal, and industrial sectors. A leading innovation is the rollout of micro anaerobic digestion systems, capable of processing 1 to 5 tonnes per day of organic waste. Over 1,200 units were installed in 2023, particularly in hospitality and small-scale agricultural operations. These units generated over 64 million kWh of electricity and heat, reducing reliance on fossil fuels. Biochar-based composting also advanced, with 38 pilot projects completed globally. Facilities in Germany, Canada, and South Korea adopted pyrolysis compost units that generate both soil-enhancing biochar and carbon credits. Each unit handles up to 6,500 tonnes annually while capturing 1,800 tonnes of carbon. New sensor-equipped aerobic composting drums with auto-temperature regulation and humidity balancing improved decomposition rates by 20%, reducing composting cycles from 12 weeks to 8 weeks. Over 3,400 units were sold in 2023 to city waste departments and corporate campuses. A major development includes blockchain-based traceability platforms that certify compost origin, processing quality, and heavy metal compliance. In 2023, over 75 compost processors in Europe used these systems to issue digitally verifiable compost certificates to agricultural buyers. Food waste dehydrators entered the residential market with 17 companies introducing compact, odorless models. These units processed 800,000 tonnes of household kitchen waste in 2023, generating soil conditioners and reducing urban organic disposal by 6% in select cities. Upgrades in gas purification units enabled biogas enrichment to 99.5% methane, meeting grid-injection standards across 15 countries. In 2023, 34 new membrane filtration modules were launched, allowing lower-cost operation for rural communities. Animal feed conversion systems that convert organic food scraps into high-protein feedstock were trialed at 48 food manufacturing plants. Collectively, they diverted 95,000 tonnes of waste and generated 18,500 tonnes of animal feed. Software-based route optimization for collection trucks improved fuel use by 13% in 27 cities, as automated scheduling algorithms were linked to real-time waste level sensors in 21,000 collection bins. The surge in smart, modular, and traceable waste recycling products reflects strong innovation in the market, helping scale operations while complying with stricter environmental standards.

Five Recent Developments

Veolia Environnement launched 12 new anaerobic digestion plants in Europe in Q1 2024, adding 3.2 million tonnes of annual organic waste processing capacity.
Waste Management, Inc. signed a partnership with a U.S. utility in January 2024 to supply 160 million kWh of biogas annually from 8 facilities across California.
Cleanaway (Australia) commissioned three in-vessel composting facilities in Q4 2023, processing a combined 410,000 tonnes of green and food waste.
SUEZ Group introduced blockchain-traced compost certification across 6 European countries in late 2023, with 650,000 tonnes of compost verified digitally.
Republic Services launched a pilot food waste dehydration system across 320 retail outlets in early 2024, diverting 55,000 tonnes from landfills in six months.

Report Coverage of Organic Waste Recycling Market

This report offers detailed insight into the global organic waste recycling market, analyzing industry metrics, technological innovation, regulatory drivers, and operational capacities across all major regions. The report covers 460 million tonnes of organic waste processed in 2023 through various treatment methods including composting, anaerobic digestion, biogas upgrading, waste-to-energy, and emerging recycling technologies. The segmentation analysis includes treatment by type—composting (210 million tonnes), anaerobic digestion (115 million tonnes), and biogas production (4.8 billion cubic meters)—as well as application sectors spanning urban waste management, agriculture, food processing, and municipal service infrastructure. Each segment is evaluated based on processing volume, facility deployment, and job creation. In 2023, organic waste recycling supported over 340,000 direct jobs across 6,200 facilities globally. The report outlines the market’s regional dynamics, with Europe leading due to policy support and infrastructure, Asia-Pacific showing high growth due to urbanization, North America advancing through corporate partnerships, and Middle East & Africa developing foundational systems with international support. Key company profiles include detailed operational metrics for Veolia and Waste Management, the top performers in waste processing volumes and facility ownership. The competitive landscape review evaluates technology deployment, international expansion, and sustainability KPIs. Investment trends are also analyzed, revealing over 150 facility projects initiated in 2023 and strong interest in decentralized digestion and composting. The report also identifies more than 420 million kWh of biogas-derived energy added to national grids globally. Product development insights include advances in aerobic and anaerobic systems, AI-sorting integration, blockchain traceability, smart household composters, and feedstock conversion technologies. The report tracks over 58 new innovations that are transforming organic waste recycling into a scalable and traceable sector. Finally, the report identifies five recent developments by major manufacturers and service providers, offering real-time snapshots of activity. This comprehensive coverage ensures stakeholders are equipped with timely, factual, and actionable insights across the market ecosystem.

Frequently Asked Questions

What value is the Organic Waste Recycling market expected to touch by 2033

The global Organic Waste Recycling market is expected to reach USD 34.43 Million by 2033.

What is CAGR of the Organic Waste Recycling market expected to exhibit by 2033?

The Organic Waste Recycling market is expected to exhibit a CAGR of 6.66% by 2033.

Which are the top companies operating in the Organic Waste Recycling market?

Veolia Environnement S.A. (France), SUEZ Group (France), Waste Management, Inc. (USA), Republic Services, Inc. (USA), Cleanaway Waste Management Limited (Australia), Biffa plc (UK), Covanta Holding Corporation (USA), Remondis SE & Co. KG (Germany), Stericycle, Inc. (USA), Recology (USA)