M&A in the waste management industry is expected to gain momentum in 2026 as more private equity firms turn to roll-up strategies and interest rates level out.
Composting will likely be a key driver of activity. The sector leads the waste management industry in terms of growth, with an average annual growth rate of 77.9%. Here’s what private market dealmakers need to know.
Fertile Areas in the Composting Space
Source: Grata
Composting companies account for 3.8% of the broader waste management industry. Though the space is small, it is ripe with acquisition opportunities. There are currently over 2,000 privately owned companies in the space.
What’s Feeding Activity in the Composting Space
Source: Grata
Composting companies see the highest average growth rates in the waste management industry by a long shot, in both the public and private markets. This is the result of several key factors converging:
- New environmental regulations are increasingly popping up at the state and locality level banning food and organic waste from landfills.
- Consumer demand is shifting. Interest in organic food, home gardening, and sustainable landscaping saw a boost during the pandemic, and it has continued to grow.
- Government support and infrastructure for composting programs are growing to accommodate evolving regulations and shifting consumer sentiment.
- Technology such as smart sensors, robotics, and processing efficiency solutions are making compost processing operations more effective and easier to scale.
- Companies in the CPG industry are increasingly seeking compostable alternatives to plastic packaging.
Composting companies also tend to see the highest average margins out of the sectors analyzed in the PE Playbook: Waste Management. Diverting organic waste from landfills reduces disposal fees for composting companies and their clients. Additionally, the natural decomposition involved in composting requires less energy than traditional waste processing, lowering processing costs.
Top Companies in the Composting Sector
Source: Grata
The Grata team has curated a list of top private companies in the composting sector. These companies have been selected based on their revenue and employee headcount compared to the industry averages.
Grata users can see the list here.
Take Action with Grata
If you’re a private market dealmaker looking to make moves in the composting space, Grata can help you put the insights in this article into action.
From in-depth market research to sourcing to pipeline management and relationship nurturing, Grata’s end-to-end dealmaking platform streamlines your workflows so that you can close more deals.
Schedule a demo today to get started.
