The food processing industry generates significant amounts of waste, creating environmental and economic challenges associated with waste treatment and management. This study focuses on the environmental and economic implications of waste stream valorization in the production of tomato-based sauces. Using an integrated approach combining cradle to gate Life Cycle Assessment (LCA) and Techno-Economic Analysis (TEA), this study evaluates the potential reduction in environmental emissions and economic impact of the waste management strategy. The research was conducted using primary data collected from a tomato-based sauces production facility that operates with a batch production of 1300 kg. 5.5% (w/w) on the wet basis of the total production that goes as a waste stream and was considered for valorization to evaluate its impact on global warming potential (GWP), land use (LU) and water consumption (WC). LCA results indicate approximately a 2.3% reduction in GWP, and a 2.07% reduction in LU and WC emissions when valorizing 40% of product from the waste stream while 100% achieves a 6% reduction in GWP, 5.22% in LU and 5.25% in WC. Additionally, the study involves a TEA to assess the economic sustainability of waste stream incorporation. Factors considered involve capital expenditure, operational cost, and potential cost savings from reduced waste disposal and raw material utilization. The findings aim to identify the balance between environmental performance gains and economic feasibility, providing a practical way for industry adoption. The results of this study offer valuable insights for food industry stakeholders seeking to align their operations and production with sustainability goals.