Abstract2‐Phenylethanol (2‐PE) is an alcohol with a rosy scent, commonly used as a fragrance, flavoring agent, and preservative in food and cosmetics. This study evaluates 2‐PE bioproduction using apple pomace and whey as low‐cost, biobased substrates for the growth of the yeast strain Kluyveromyces marxianus CBS600. Apple pomace resulted in the highest 2‐PE productivity in shake flasks, reaching 44.5 mg.L−1.h−1‐(1.07 g.L−1 in 24 h), while its upscaling to a 1 L bioreactor led to 1.60 g.L−1 in 48 h. Fermentation of acid whey supplemented with yeast extract and minerals for growth purposes significantly improved the bioconversion, leading to 2.64 g.L−1 of 2‐PE in 72 h. Using a membrane‐based solvent extraction system, 2‐PE was recovered efficiently from a glucose fermentation medium without impacting cell‐specific product yield, showing promise for 2‐PE recovery from waste‐stream‐based fermentation processes. The economic viability and environmental impacts of this process were also assessed based on process simulations of 2‐PE fermentation at industrial scale. Techno‐economic assessment showed that 2‐PE production from whey was highly profitable, with a unit production cost of US$186 per kg and an internal rate of return of 24.9%. Life cycle analysis indicated that 2‐PE fermentation has 1500 times lower greenhouse gas emissions than conventional 2‐PE produced by extraction from roses. This study thus shows that the fermentative production of 2‐PE is a sustainable and economically viable process that can contribute to a circular bioeconomy by valorizing agroindustrial residues.