Startup Opportunities from Organic Waste and Agricultural By-Products in Southeast Asia

1. Introduction

Southeast Asia is currently facing a major challenge in agricultural resource management. In Indonesia alone, the country generates more than 100 million tons of agricultural by-products each year.^[1] In countries like Thailand and Vietnam, rice straw, fruit peels, and coffee grounds are often discarded directly into the environment or burned openly right after the harvest. This practice causes air pollution through fine particulate matter (PM2.5) and contributes enormously to global greenhouse gas emissions.^[2] Notably, the global food waste management market is projected to grow from $46.14 billion in 2025 to $75.99 billion by 2034.^[3] Seizing this opportunity, a new generation of agri-tech startups in Southeast Asia is redefining the concept of "waste." They are pioneering solutions to turn agricultural by-products and waste into commercially valuable proteins, fertilizers, and biomaterials—protecting the ecosystem while creating livelihoods for local communities.

2. Startup Initiatives
a. Bioprocessing of organic waste
Using insects to process organic waste is a popular and growing trend in the region. Instead of letting food waste decompose in landfills—where it emits harmful methane gas that is 80 times more potent than CO2—startups are turning it into a nutritious food source for insects.
In Indonesia, the startup Magalarva utilizes Black Soldier Fly (BSF) larvae to process organic waste into animal feed and bio-fertilizers. Reports show that, starting with a modest capacity of just 60 kg per day, Magalarva successfully scaled up to 10 tons per day, yielding 1 to 2 tons of larvae regularly thanks to strategic funding from the DBS Foundation.^[4] To secure a steady supply of "food" for the flies, the company has partnered with dairy producers, environmental service providers, and traditional market management boards.^[5] They distribute their products through both B2B and B2C channels, aiming to export to South Korea, Japan, Singapore, and the Americas.^[6] In 2024 alone, the enterprise successfully exported 14 tons of animal feed to the US.^[7] Remarkably, this model delivers substantial social impact by creating jobs for dozens of women and helping informal waste collectors boost their income by up to 35%.^[8]

On a larger industrial scale, Entobel, a Singapore-based biotechnology company that chose Vietnam as its launchpad, successfully raised $33 million (Series B) from Mekong Capital and the IFC to build Asia's largest insect protein production plant in Vung Tau.^[9] This facility features an impressive 50-story vertical larvae farming system with a capacity of up to 10,000 tons of protein per year.^[10] Ecologically, Entobel has established a circular supply chain with Heineken Vietnam by purchasing brewer's spent grain to feed its black soldier flies. This process generates valuable products for the aquaculture industry, including protein meal (H-Meal), insect oil (H-Oil), and organic fertilizer (H-Ferti).^[11] Their vision is to expand this model to other tropical nations like Indonesia and Malaysia, where there is an abundance of agricultural by-products and an ideal climate for black soldier flies.

Meanwhile, Cricket One (Vietnam) focuses on producing cricket protein through a hybrid model that combines a centralized farm with a network of smallholder farmers. This approach effectively utilizes local agricultural by-products (such as cassava tops, crop stems, and leaves) as biomass to feed the crickets, thereby completely closing the resource loop.^[12] Crickets serve as a highly sustainable protein source, requiring significantly lower water consumption and emitting fewer greenhouse gases than traditional livestock. Through its "Farm to Fork" strategy and guaranteed product off-take agreements, Cricket One has trained and provided resources to smallholder farmers, successfully integrating them into the global value chain. The company's products have already been approved for sale in strict markets such as the European Union (EU), North America, and Japan, paving the way for the export of Vietnam's high-value, circular agricultural goods.

b. Biomaterials

In addition to alternative proteins, agricultural by-products are becoming crucial materials in combating the global plastic waste crisis. In Singapore, a nation that relies on imports for up to 90% of its food supply,^[13]packaging waste from food centers and supermarkets presents a major hurdle to the country's "Zero Waste" goals. Recognizing this pressing issue, Alterpacks, a startup incubated at Singapore Management University (SMU) has successfully extracted plant fibers from spent grains and wheat husks to manufacture biodegradable packaging that is completely free of PFAS "forever chemicals"^[14] Alterpacks' containers can withstand temperatures ranging from −18°C to 260°C, are grease-resistant for hot foods, and are fully home-compostable after use. Instead of lingering as plastic waste for centuries, they break down into nutrients for the soil. Currently, their products have achieved wide commercialization: they have supplied over 80,000 "Harvest Hold" containers to the Freshmart supermarket chain, designed customized "Double Decker" boxes for the Pizza 4P's chain in Vietnam, and successfully piloted medical trays in Indonesian hospitals to help reduce medical plastic waste.^[15] Rather than extracting virgin raw materials, Alterpacks upcycles discarded waste, adding value while easing the burden on Semakau Landfill, Singapore's only landfill, which is projected to reach full capacity by 2035 without timely interventions.^[16]

Similarly, in Vietnam, AirX Carbon is pioneering the production of carbon-negative bioplastics derived from coffee grounds, rice husks, and coconut coir.^[17] According to NSSC Vietnam, utilizing a factory in Long An with a production capacity of 100 tons per month, AirX Carbon has successfully produced bio-pallets (NetZero Pallet).^[18] This innovative product ecosystem has attracted collaborative partnerships with major global corporations such as Uniqlo, Nestlé, and Paula's Choice.^[19] Likewise, in Thailand, the social enterprise Papa Paper (Pal Plus) has won numerous international awards for its technology that converts sugarcane bagasse, corn husks, and banana stems into water-resistant and fire-resistant packaging. This provides a direct, sustainable replacement for traditional Styrofoam and plastic packaging.^[20]

c. Community Initiatives and Urban Agriculture

The circular economy is not reserved exclusively for large industrial factories; its principles are also deeply taking root in community and urban agriculture models. In Ho Chi Minh City (Vietnam), Mr. Tran Tai (CEO of the startup Vinabiomush) has integrated over 80% automation into the cultivation process of Cordyceps mushrooms.^[21] Coming from a farming family, he developed a state-of-the-art mushroom laboratory featuring a strictly controlled "artificial climate" environment. Impressively, this model utilizes local agricultural by-products such as brown rice and soybean powder as cultivation substrates, achieving a success rate of over 97%.^[22] Vinabiomush's products have been incorporated into the national OCOP (One Commune One Product) program, earning 3-star and 4-star certifications, along with numerous awards for outstanding rural industrial products. This showcases the formidable competitiveness of high-tech circular agriculture.

At the neighborhood planning level, the Sustainability@Tampines Park project in Singapore serves as a prime example of an urban circular ecosystem. Residents collect their food waste to feed black soldier flies. The fly excrement (frass) is subsequently used as fertilizer to grow hydroponic vegetables, while the larvae become a high-protein feed for a local tilapia farm. Notably, residents who contribute their food waste are rewarded with "green currency," which they can use to purchase these very vegetables and fish. This completely closes the urban food loop while actively raising environmental awareness within the community.^[23]

In Myanmar, the Kokkoya Organics cooperative, operating on the outskirts of Yangon, has also made a significant impact. They employ a "no-dig" farming method combined with the use of biochar. Furthermore, they have launched a "Food Waste Loop Subscription" service to collect and compost between 200 and 400 kg of organic waste each month.^[24] The farm supplies fresh produce via a Community Supported Agriculture (CSA) model to 20-60 regular members while simultaneously generating sustainable employment for local women and young workers.^[25]

3. Conclusion

Innovation in agriculture goes beyond technical upgrades; it represents a transformation in ecological thinking and social organization. The integration of top-down macro strategies (such as national policies, carbon taxes, and Extended Producer Responsibility - EPR) with bottom-up micro initiatives (driven by tech startups and farming communities) is the key for Southeast Asia to resolve its environmental crisis. By transitioning from a linear extractive economy to a regenerative model, the region is fortifying both its food and human security, firmly rooted in the respect for ecological boundaries.
The agricultural system of the future will no longer be a linear path that ends in a landfill. Instead, it will be a continuous, circular loop where every endpoint marks the beginning of a new value chain. The current wave of startups "turning waste into resources" signifies exactly these new beginnings, actively shaping a green, self-reliant, and prosperous Southeast Asia by 2030 and far beyond.

REFERENCE

^[1] Febiani, T. (2024, November 27). Sampangan: Transforming Agricultural Waste into Sustainable Innovation. DKK Consulting. Truy cập từ https://dkkconsulting.id/publication/sampangan-transforming-agricultural-waste-into-sustainable-innovation

^[2] Thanh Van. (2025, November 21). Circular solutions help Vietnamese farmers turn by-products into resources. Vietnam Investment Review. Truy cập từ https://vir.com.vn/circular-solutions-help-vietnamese-farmers-turn-by-products-into-resources-141120.html

^[3] Straits Research. Food Waste Management Market Size, Share, Growth, Analysis, 2034. Truy cập từ https://straitsresearch.com/report/food-waste-management-market

^[4] DBS Bank. (2025, March 19). From waste to treasure, this DBS Foundation grantee shows that waste management innovation can go international. Truy cập từ https://www.dbs.com/newsroom/From_waste_to_treasure_this_DBS_Foundation_grantee_shows_that_waste_management_innovation_can_go_international

^[5] Herliana, M. L. Black Soldier Fly to Eliminate Organic Waste. AIM2Flourish. Truy cập từ https://aim2flourish.com/innovations/black-soldier-fly-to-eliminate-organic-waste

^[6] DBS Bank. (2025, March 19). From waste to treasure, this DBS Foundation grantee shows that waste management innovation can go international. Truy cập từ https://www.dbs.com/newsroom/From_waste_to_treasure_this_DBS_Foundation_grantee_shows_that_waste_management_innovation_can_go_international

^[7] Eka, T. (2025, March 21). Magalarva Tackles Indonesia’s Food Waste Crisis, Expands with DBS Grant. Observerid. Truy cập từ https://observerid.com/magalarva-tackles-indonesias-food-waste-crisis-expands-with-dbs-grant/

^[8] DBS Bank. (2025, March 19). From waste to treasure, this DBS Foundation grantee shows that waste management innovation can go international. Truy cập từ https://www.dbs.com/newsroom/From_waste_to_treasure_this_DBS_Foundation_grantee_shows_that_waste_management_innovation_can_go_international

^[9] Entobel. (2023, November 23). Entobel Sets Industry Record with Opening of the Largest Insect Protein Production Plant in Asia. PR Newswire.Truy cập từ https://www.prnewswire.com/apac/news-releases/entobel-sets-industry-record-with-opening-of-the-largest-insect-protein-production-plant-in-asia-301995704.html

^[10] Entobel. (2023, November 23). Entobel Sets Industry Record with Opening of the Largest Insect Protein Production Plant in Asia. PR Newswire.Truy cập từ https://www.prnewswire.com/apac/news-releases/entobel-sets-industry-record-with-opening-of-the-largest-insect-protein-production-plant-in-asia-301995704.html

^[11] Entobel. Functional insect-based ingredients for animal feed. Truy cập từ https://www.entobel.com/en/functional-insect-based-ingredients-for-animal-feed/

^[12] Tatarski, M. (2020, January 3). From scorpion skewers to cricket flour, bug protein is becoming big business. Mongabay. Truy cập từ https://news.mongabay.com/2020/01/from-scorpion-skewers-to-cricket-flour-bug-protein-is-becoming-big-business/

^[13] Circle Economy. (2023, March 22). Boosting sustainable food production with Singapore’s first community-based circular ecosystem. Truy cập từ https://circle-economy.com/knowledge-hub/article/30013

^[14] Alterpacks. Eco-friendly solutions. Truy cập từ https://alterpacks.com/our-products/

^[15] Alterpacks. Pilots. Truy cập từ https://alterpacks.com/pilots/

^[16] Heng, K., Tan, K., Chan, A., & Lee, C. C. C. (2024). Food waste valorization: Leveraging Singapore’s Zero Waste Master Plan and 30-by-30 goal. Sustainability, 16(17), 7321. https://doi.org/10.3390/su16177321

^[17] VnExpress. (2025, December 23). Startup Việt làm trăm loại sản phẩm sinh học từ bã nông nghiệp. Báo VnExpress Kinh doanh. Tuy cập từ https://vnexpress.net/startup-viet-lam-tram-loai-san-pham-sinh-hoc-tu-ba-nong-nghiep-4997125.html

^[18] National Startup Support Center of Vietnam (NSSC). AirX Carbon: Transforming agricultural waste into carbon-negative bioplastics. Truy cập từ https://nssc.gov.vn/case-studies/airx-carbon-transforming-agricultural-waste-into-carbon-negative-bioplastics/

^[19] AirX Carbon. Our story. Truy cập từ https://airxcarbon.com/about

^[20] Treerutkuarkul, A. (2026, May 22). Turning waste to value: ASEAN SME-start-ups opportunities for transforming agricultural by-products into circular economy. ASEAN Agrifood. Truy cập từ https://asean-agrifood.org/turning-waste-to-value-asean-sme-start-ups-opportunities-for-transforming-agricultural-by-products-into-circular-economy/

^[21] Hoàng Nhị. (2026, 05 tháng 03). Nông dân trẻ “ươm mầm” nông nghiệp 4.0. Happy Vietnam – Thông tấn xã Việt Nam. Truy cập từ https://happyvietnam.vnanet.vn/nong-dan-tre-uom-mam-nong-nghiep-40/55087.html

^[22] Hoàng Nhị. (2026, 05 tháng 03). Nông dân trẻ “ươm mầm” nông nghiệp 4.0. Happy Vietnam – Thông tấn xã Việt Nam. Truy cập từ https://happyvietnam.vnanet.vn/nong-dan-tre-uom-mam-nong-nghiep-40/55087.html

^[23] Lum, R. (2023, March 22). Boosting sustainable food production with Singapore’s first community-based circular ecosystem. Circle Economy. Truy cập từ https://circle-economy.com/knowledge-hub/article/30013

^[24] EU SWITCH-Asia. Circular Urban Farming: Kokkoya Organics. Circular Economy Business Case Studies in Southeast Asia.

^[25] EU SWITCH-Asia. Circular Urban Farming: Kokkoya Organics. Circular Economy Business Case Studies in Southeast Asia.