How the Coffee Sector is Embracing Circular Economy: From Waste to Resource

• The Circular Economy Working Group mobilizes over 60 experts, launches global initiatives, and pioneers the reuse of spent coffee grounds and husks across the coffee industry.

As the global coffee industry grapples with mounting sustainability challenges—from waste generation to climate-related risks—one initiative is redefining the conversation: the Circular Economy Working Group. Backed by engagement from over 62 professionals across 44 global organizations, this cross-sectoral effort is positioning circular economy principles at the core of the coffee value chain.

In an industry that produces vast quantities of byproducts like coffee husks, pulp, and spent grounds, the potential to reuse, repurpose, and regenerate materials is immense. The Circular Economy Working Group has made this vision tangible through key collaborations, including the Spent Coffee Grounds Working Group and the creation of the Center for Circular Economy and Coffee in Turin, Italy—a new hub designed to centralize innovation and knowledge on waste valorization.

A Global Movement Toward Regenerative Coffee Practices

During a recent series of virtual meetings, the Working Group laid out its accomplishments and future roadmap. Among the highlights was the release of multiple strategic documents, including a white paper and contributions to the International Coffee Organization’s Coffee Development Report, which provide actionable insights and policy recommendations for circularity in the sector.

At the heart of the discussion was the valorization of spent coffee grounds (SCG) and coffee husks. These materials—typically discarded as waste—have shown enormous potential for reuse across several sectors.

Madhu Bopanna, a group participant, highlighted how coffee husks are already being used as organic fertilizer and suggested that with the right technologies, they could be transformed into alternative products. He also referenced a case in India where spent coffee grounds are being turned into eco-friendly paper goods, showing the growing entrepreneurial interest in waste conversion.

Meanwhile, Ruwawa shed light on the agronomic benefits of SCG, particularly in soil enrichment, pest control, and overall soil health improvement. She emphasized the need for more widespread adoption of soil amendment practices that use spent grounds—especially in regions where synthetic fertilizers pose environmental risks.

Driving Innovation, Research, and Systemic Change

Katherine Oglietti, the group’s facilitator, steered discussions on how innovation and systemic design are essential for mainstreaming circular economy solutions. She introduced an evolving learning agenda focused on:

• Innovation in circular product development

• Market access for reused coffee materials

• Carbon insetting strategies

• Regenerative agriculture practices

Future plans include a webinar series aimed at knowledge-sharing among producers, researchers, and companies. Topics will range from packaging waste reduction to biomass-to-energy models, featuring findings from university research teams in Italy.

Oglietti also encouraged members to contribute to the upcoming review of the Spent Coffee Grounds White Paper, signaling an inclusive and collaborative path forward.

Overcoming Policy Barriers and Scaling Solutions

Yet despite the promising momentum, the group recognizes that policy and logistical barriers continue to hinder progress. Kassa Mariamawit Solomon, a leading contributor, presented a comprehensive update on these challenges, particularly focusing on:

• The EU Waste Framework Directive

• The EU Food Contact Regulation

• Classification of SCG as bio-waste, which limits reuse in packaging and food products

Solomon explained that a lack of harmonized regulations makes it difficult to scale SCG valorization across borders. To address this, she has launched industry surveys aimed at mapping SCG management practices and identifying the support mechanisms most needed by stakeholders.

She also revealed that the group has introduced a new research database in the members area, featuring over 200 studies and circular economy initiatives, with an emphasis on low-barrier entry points for industry newcomers.

Additionally, a blog series has been launched to demystify circular economy concepts for small-scale farmers, processors, and youth groups—especially in developing coffee-producing regions.

Pilot Projects and the Road Ahead

Among the most promising developments are pilot collaborations with UNIDO in Kenya and an ongoing feasibility study for a project in Ethiopia, where SCG could be transformed into clean energy or textile materials using biorefinery technologies.

Solomon stressed the need for direct collection models from industrial operations and called for a secondary raw materials market to stimulate demand for coffee-based circular products.

Despite logistical difficulties—such as inconsistent SCG collection methods and variable quality due to brewing processes—the group remains optimistic. The circular economy, they argue, is not just a sustainability trend, but an economic opportunity waiting to be unlocked.