Walmart Converts Food Waste into Compost, Made Available in 100 Stores

Image Credit: Denali

Walmart is taking a significant step in its sustainability efforts by introducing compost from food waste into the garden sections of at least 600 U.S. stores. The compost, branded as ReCirculate, is produced by Denali, a company specializing in organic waste recycling. This marks the first time Walmart will retail a product derived from its unsalable food.

Denali has collected food waste from over 1,400 Walmart and Sam’s Club locations across 16 major markets, including Dallas, Houston, Philadelphia, and Washington, D.C. The compost, priced under $7 per cubic foot, will initially be available in eight states: Alabama, Arizona, California, Florida, Georgia, Louisiana, Mississippi, and Texas. These locations were selected based on strong consumer demand for soil supplements.

As the largest grocery retailer in the U.S., Walmart has pledged to cut its operational food waste by 50% by 2030, using 2016 as a baseline. The company has achieved a 12% reduction, repurposing unsold food creatively—such as turning outdated bread into croutons or using rotisserie chicken in pre-made salads.

Walmart is also actively working to curb methane emissions from organic waste by processing it through alternative methods. Currently, the retailer diverts 78% of its total waste from landfills, helping to mitigate environmental impact.

U.S. grocery retailers generate an estimated 4.4 million tons of food waste each year. Roughly half of this organic material is in landfills, contributing to methane emissions and financial losses of $3.6 billion in unsold inventory.

Walmart is one of seven retailers—alongside Kroger, Aldi, Amazon Fresh, and Whole Foods—that have signed the U.S. Food Waste Pact, committing to waste reduction goals and transparent progress reporting.

Denali, which recycled 7 million tons of food waste in 2023, converts organic material into animal feed, biodiesel, compost, and mulch. The company estimates its waste collection efforts are equivalent to removing 100,000 gas-powered cars from the road annually.

“It’s great to see unique partnerships at the food recycling level,” said Jackie Suggitt, vice president of business initiatives and community engagement at ReFed. Many grocers are using technology and other best practices to prevent waste in the first place, but she said we’re always going to have food that will require attention at the end of its life.

A key aspect of this initiative is Denali’s Zero De-Pack technology, which automates the separation of food waste from packaging materials. Walmart is the first retailer to adopt this technology, streamlining the process and improving efficiency in its waste management.

Speiser said Denali’s other products, such as animal feed, are custom-blended for farmers, ranchers, and aquaculture operations. Its biodiesel and lubricants are sold to automotive companies.