•Coupling of insect production with food chain.•Nutrient recovery from food waste.•Implementation of sustainability and circularity concepts in insect processing. Food loss and waste are serious threats to the sustainability of our food systems. Innovative and multi-faced solutions are continuously being proposed, tested and implemented by researchers, government authorities, non-government bodies and food industries to tackle this problem of food waste. Insect-based bioconversions have been reported as a marketable solution for reducing food waste. This rather novel approach can efficiently convert several tonnes of food waste into valuable products including human food, animal feed, fertiliser and other secondary industrial compounds. This paper couples the production of edible insects with the valorisation of food waste, providing an attractive key for closing the loop of food value chain. Current status of insect processing and their importance in circular economy is also discussed in detail.