Global Food Upcycling Market By Source(Food Waste, Agricultural by Products, Brewery and Distillery Waste), By Application(Food Processing, Beverage Processing, Cosmetics and Personal Care, Dietary Supplements and Nutraceuticals, Animal Feed, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The global Food Upcycling Market size is expected to be worth around USD 93.6 billion by 2033, from USD 56.4 billion in 2023, growing at a CAGR of 5.2% during the forecast period from 2023 to 2033.

The food upcycling market is an emerging segment within the food industry focused on converting byproducts or waste from food production and consumption into valuable, high-quality products. This process is a crucial part of a broader strategy to tackle global food waste, which poses significant environmental and resource efficiency challenges.

Food upcycling transforms discarded food parts into edible and nutritious products, thereby contributing to environmental sustainability by reducing waste and conserving natural resources. Additionally, it offers economic advantages by creating new revenue opportunities for businesses. The growth of the upcycled food products market is propelled by increasing consumer awareness, the demand for sustainable practices, and supportive government policies, along with advancements in food processing technologies.

Several government and institutional initiatives highlight the commitment to addressing food waste. For example, under the Singapore Green Plan 2030, there are ambitious targets to reduce landfill waste by 30% by the year 2030.

This initiative includes mandates for large commercial and industrial food waste generators to segregate their waste for treatment starting in 2024. Such policies are complemented by significant infrastructure investments, like the Tuas Nexus in Singapore, which integrates water and solid waste treatment facilities to enhance biogas production and carbon savings.

On the private sector front, innovative companies are spearheading the movement towards food upcycling. ReGrained, a startup based in California, uses patented technology to transform spent malt from breweries into nutrient-rich flour, exploring international markets such as Japan through strategic partnerships. Similarly, Mycorena in Sweden has successfully raised significant funds to expand its operations that convert food waste into mycelium protein, showcasing the potential for large-scale application of upcycling technologies.

Collaborations across the industry are crucial for expanding the range of upcycled products. Upcycled Foods, Inc., for instance, has partnered with other companies to develop new products that incorporate upcycled ingredients like spent brewers’ grain, which are high in protein and fiber. These partnerships not only enhance product offerings but also help align the food industry with sustainable practices by providing environmentally friendly and nutritionally enriched options without compromising on taste or texture.

Key Takeaways

• The global food upcycling market will grow from USD 56.4 billion in 2023 to USD 93.6 billion by 2033, with a 5.2% CAGR.
• Food Waste holds over 42.6% market share, processing leftovers into animal feed, compost, or bioenergy.
• Food Processing dominates with a 40.3% market share, meeting the demand for sustainable food ingredients.
• North America leads with a 38.4% market share valued at USD 21.65 billion, driven by strong consumer demand for sustainability.

By Source

In 2023, Food Waste held a dominant market position, capturing more than a 42.6% share. This segment includes leftovers from household and commercial kitchens, which are often processed into animal feed, compost, or bioenergy. The emphasis on reducing landfill use and greenhouse gas emissions drives the growth in this segment, as more businesses and consumers become aware of the environmental impacts of food waste.

Agricultural by-products, another significant segment, involve the reuse of stalks, husks, and other remnants from farming operations. These materials are increasingly utilized to create value-added products such as bio-based materials, contributing to a circular economy. Innovations in processing technologies have enhanced the viability of converting these by-products into valuable commercial products, thus driving their market uptake.

The Brewery and Distillery Waste segment includes spent grains and wastewater from alcohol production. This waste stream is being transformed into various products, including animal feed, nutritional supplements, and renewable energy sources. The growing craft brewery trend and the expansion of distilleries worldwide have spurred this segment’s growth, with companies leveraging waste as a resource to achieve sustainability goals.

By Application

In 2023, Food Processing held a dominant market position, capturing more than a 40.3% share. This segment benefits from the increasing demand for sustainable and ethical food production practices. Companies are turning food scraps and by-products into high-value food ingredients, reducing waste and improving their environmental footprint.

Beverage Processing is another significant segment that utilizes upcycled ingredients to create innovative drinks. These ingredients often come from food waste or by-products that are rich in flavors and nutrients, providing a unique selling point in a competitive market.

In the Cosmetics & Personal Care segment, upcycled ingredients are prized for their natural and sustainable appeal. Materials like coffee grounds and fruit peels are transformed into exfoliating agents and other cosmetic products, aligning with the growing consumer preference for eco-friendly beauty solutions.

Dietary Supplements & Nutraceuticals are leveraging upcycled ingredients to enhance the nutritional profile of products. Components rich in antioxidants, fibers, and proteins are extracted from food waste, adding value to health-focused products.

Animal Feed uses upcycled food by-products to create nutrient-rich feed options. This segment helps reduce the overall cost of animal husbandry and supports sustainable agricultural practices by minimizing waste.

Key Market Segments

By Source

• Food Waste
• Agricultural by Products
• Brewery and Distillery Waste

By Application

• Food Processing
• Beverage Processing
• Cosmetics & Personal Care
• Dietary Supplements & Nutraceuticals
• Animal Feed
• Others

Drivers

Major Driving Factor for the Food Upcycling Market

A significant driving factor for the food upcycling market is the escalating consumer awareness and concern for environmental sustainability. This growth trajectory underscores the increasing demand for sustainable and eco-friendly food solutions, driven by a collective consumer shift towards more environmentally responsible consumption practices.

Governments and international bodies are also playing a crucial role by implementing initiatives that promote sustainable waste management and food security, which in turn bolsters the market for upcycled food products. For example, numerous regulatory measures encourage the reduction of food waste at the production and consumption levels, aiming to convert what would typically be discarded into valuable food resources.

Moreover, private sector innovation in transforming food byproducts into edible products is intensifying, with many companies exploring new methods and technologies to upcycle food waste into nutritionally valuable products. These initiatives not only help reduce the environmental impact of food waste but also cater to the growing consumer demand for nutritious and sustainable products. This is evident from the various new products and collaborations emerging in the market, focusing on enhancing the appeal and nutritional content of upcycled foods.

The market’s expansion is further facilitated by the development of robust supply chains and technologies that enable the efficient conversion of food waste into upcycled products. As these technologies and processes mature, they reduce costs and improve the accessibility of upcycled foods, making them a viable option for an increasing number of consumers and businesses.

Restraints

Supply Chain Complexity and Sourcing Challenges

One of the most significant restraining factors for the food upcycling market is the complexity of the supply chain and sourcing issues. As the market for upcycled food products expands, the challenge of consistently sourcing adequate amounts of usable waste materials becomes more apparent. This issue is exacerbated when the waste stream is sparse and dispersed across various locations, which can lead to increased costs and a larger environmental footprint due to transportation and processing​.

These logistical challenges are crucial because they affect the scalability and economic viability of upcycling projects. For example, if a waste stream is produced internally at a consistent location, it’s easier to manage. However, if these streams are low-volume and scattered across many sites, it complicates collection, increases costs, and could negate some of the environmental benefits sought through upcycling. Therefore, managing these supply chains effectively is vital for the sustainability and success of upcycling initiatives.

Moreover, the technical complexity involved in transforming food waste into valuable products can be a barrier. Different types of waste require various processing techniques, from simple drying to complex multi-step chemical extractions, which may require significant technical expertise and investment in specialized equipment​.

In summary, while the food upcycling market is poised for growth due to increasing consumer interest in sustainability, the underlying supply chain and sourcing challenges pose significant hurdles. These need to be addressed through innovative logistics solutions, technological advancements, and perhaps most crucially, collaborative efforts across the industry to standardize and streamline the upcycling process.

Opportunity

Major Growth Opportunities for Food Upcycling

One of the most prominent growth opportunities within the food upcycling market is the expanding demand for sustainable and environmentally friendly products. As the global awareness of sustainability increases, so does the market potential for upcycled food products.

This growth is further supported by the rising consumer preference for nutrient-dense products derived from upcycled ingredients. For instance, companies are innovating with upcycled ingredients that turn food byproducts into nutritious additions to various food products. This not only helps in reducing food waste but also enhances the nutritional value of everyday food items, making these upcycled products highly appealing to health-conscious consumers​​​.

Moreover, the food upcycling sector benefits significantly from technological advancements and increasing investments from major food corporations. These investments are not only financial but also involve partnerships and collaborations which help to scale the production and distribution of upcycled products. The involvement of large companies provides the necessary capital and market access to increase the visibility and availability of upcycled products, thus driving further growth in the sector​.

Additionally, there are significant opportunities in developing regions where government initiatives are promoting sustainable waste management practices. In countries like India, for example, the market for products from food waste is expected to grow at a CAGR of 15.3%, supported by both government initiatives and a growing consumer base that is increasingly leaning towards sustainable practices​.

Trends

Integration of Upcycled Ingredients in Mainstream Products

One of the most significant trends in the food upcycling sector is the integration of upcycled ingredients into mainstream food products. This trend is not just about reducing food waste but also enhancing the nutritional content of everyday foods. For example, companies are increasingly utilizing spent grains from brewing and other byproducts from food processing to create nutrient-rich flours and other ingredients used in a variety of consumer products, from baked goods to snacks.

The growth in this trend is evident in the rising number of partnerships between upcycled food companies and larger food manufacturers. These collaborations are aimed at creating new products that appeal to health-conscious consumers looking for sustainable yet nutritious food options. For instance, upcycled ingredients are being used in products ranging from protein crisps to multigrain flakes, offering higher fiber and protein content than their conventional counterparts​​​.

Moreover, the trend extends beyond just food products. Beverages are also seeing an influx of upcycled ingredients, with innovations such as teas and syrups made from cacao fruit and other typically discarded parts of produce, showcasing the versatility and potential of upcycled ingredients in meeting consumer demands for sustainability and health​.

This trend is propelled by growing consumer awareness of environmental issues and a shift towards more sustainable consumption patterns. The food upcycling market is expected to continue its growth trajectory, supported by technological advancements and increasing consumer interest in products that contribute positively to their health and the environment.

Regional Analysis

North America dominates the global food upcycling market, commanding a substantial share of 38.4% valued at USD 21.65 billion. This region’s prominence is driven by robust consumer demand for sustainable practices and innovative food solutions. The United States, in particular, leads with significant investments in research and development aimed at reducing food waste and enhancing product sustainability.

According to recent industry reports, North America’s focus on reducing environmental impact through food upcycling initiatives has garnered substantial support from both governmental policies and private sector investments. The region’s mature food processing infrastructure and high consumer awareness further bolster its position as a key player in the global market.

Europe, following closely behind, accounts for a notable share due to stringent regulatory frameworks promoting sustainable practices across the food industry. Countries such as Germany and France have been at the forefront of implementing policies that incentivize food manufacturers to adopt upcycling technologies.

The European market benefits from a strong consumer base inclined towards eco-friendly products, thereby stimulating growth in the food upcycling sector. The market’s growth in Europe is supported by data indicating a steady increase in investments and adoption rates of upcycled food products, reflecting a shift towards circular economy principles.

Asia Pacific emerges as a rapidly growing region in the food upcycling market, driven by increasing urbanization, changing dietary habits, and rising environmental awareness. Countries like China, Japan, and India are witnessing a surge in demand for sustainable food solutions amidst concerns over food security and waste management.

The Asia Pacific region is characterized by diverse regulatory landscapes and cultural factors influencing market dynamics. Significant investments in technology and infrastructure aimed at enhancing food sustainability contribute to the region’s expanding market presence.

Middle East & Africa and Latin America exhibit nascent but promising growth trajectories in the food upcycling market. These regions are gradually embracing sustainable practices, driven by evolving consumer preferences and emerging regulatory frameworks promoting environmental stewardship.

While currently representing smaller market shares compared to North America and Europe, Middle East & Africa and Latin America are anticipated to witness accelerated growth in the coming years, supported by increasing investments in sustainable agriculture and food processing technologies.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

ReGrained Inc. specializes in transforming spent grain from breweries into nutritious snack bars and food ingredients, contributing to a circular economy in food production. Toast Ale LLC takes a similar approach by brewing beer from surplus bread, aligning its business model with sustainability goals.

RISE Products, Inc. focuses on converting organic byproducts into high-value food ingredients, such as protein and fiber-rich powders, catering to the demand for sustainable and nutritious food options. Misfit Foods, Inc. addresses food waste by using imperfect or surplus fruits and vegetables to create ready-to-eat meals, emphasizing freshness and sustainability.

US Foods Holding Corp. plays a significant role in the food upcycling market through its initiatives to reduce waste in its supply chain and offer sustainable food solutions to its customers. Agricycle Global, Inc. specializes in upcycling agricultural byproducts into marketable products, supporting local farmers and promoting sustainable agriculture.

Pulp Pantry, Inc. transforms overlooked fruit and vegetable pulp into gluten-free snacks, promoting health-conscious choices while minimizing food waste. SUPERFRAU LLC focuses on upcycling surplus produce into nutrient-dense powders and supplements, targeting health-conscious consumers.

Market Key Players

• ReGrained Inc.
• Toast Ale LLC
• RISE Products, Inc.
• Misfit Foods, Inc.
• US Foods Holding Corp.
• Agricycle Global, Inc.
• Pulp Pantry, Inc.
• SUPERFRAU LLC
• Blue Circle Foods, LLC
• Riff Cold Brewed LLC
• Barnana Inc.
• Planetarians Inc.

Recent Development

In 2023 Toast Ale LLC exemplifies innovation in the food upcycling sector by transforming surplus bread into craft beer, contributing to sustainability efforts.

By April 2023 RISE Products, they reported a production output of 50 tons of upcycled food ingredients, growing steadily to reach 80 tons by December 2024

Report Scope