Grocery Stores See 70% Jump in Food Diversion Rates
New depackaging technology is helping retailers across the U.S. divert more organic waste from landfills.
Updated on Oct. 28, 2026 in Organic Food
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New data from 2025 shows that grocery stores using automated depackaging technology increased their food diversion rates by an average of 70%. This process, which helps keep organic materials out of landfills, was utilized across more than 3,300 U.S. stores.
Why it matters
Reducing food waste is a priority for businesses seeking sustainable disposal methods, and automating the separation of packaging from food helps streamline these efforts. By reclaiming organic materials, retailers can divert significant volume away from traditional waste streams.
Industry data covering 3,300 U.S. stores indicates an average 70% increase in food diversion when automated depackaging systems are used. It remains unclear how these diversion rates scale across varied grocery retail infrastructures over time.
The players
Denali
An environmental services company specializing in organic material recycling, food waste diversion, and sustainable supply chain management.
United States Department of Agriculture
The federal agency responsible for developing and executing policy on farming, agriculture, and food, which monitors market trends for soil conditioners.
The details
The depackaging process utilizes specialized machinery designed to mechanically separate unsellable food products from their plastic or paper packaging. Once separated, the organic materials are diverted for recycling, animal feed production, or conversion into biodiesel. This automation reduces the manual labor required for store employees to sort through expired or damaged inventory.
Timeline
January 2025 marked the launch of the ReCirculate compost program.
Denali processed 14.8 billion pounds of organic materials throughout 2025.
The USDA projects a 15.3% increase in fertilizer spending in 2026.
Health Landscape
The adoption of large-scale organic waste recycling marks a shift toward circular economy models in the food supply chain. This approach directly relates to the broader trend of increasing demand for sustainable inputs, highlighted by the USDA's 2026 fertilizer spending projections.
While this industry shift happens behind the scenes, these programs support a more sustainable grocery ecosystem by minimizing food waste sent to landfills. Shoppers interested in store-level sustainability can look for signs of local organic waste programs or composting initiatives during their regular grocery visits.
The takeaway
Large-scale food diversion programs are making it easier for retailers to recover organic materials instead of discarding them. Consumers can check with their local grocery managers to see if their store participates in organic recycling or composting initiatives to reduce their neighborhood footprint.
Further reading
For more information on how retail industry standards affect the food supply, visit our guide on Organic Food.
Source note: This article includes information reported by The Manila times.
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