Global Upcycled Food Products Market - 2024-2031

Global Upcycled Food Products Market reached US$ 59.2 billion in 2023 and is expected to reach US$96 billion by 2031, growing with a CAGR of 6.23 % during the forecast period 2024-2031.

Upcycled foods are made from ingredients that would otherwise be discarded, such as food by-products, and unwanted produce. This approach aligns with the growing trend of minimizing food waste, addressing climate change, and promoting a circular economy. As consumers become increasingly aware of the environmental impact of their food choices, upcycled products are seen as an innovative and eco-friendly alternative, offering both health benefits and a reduced carbon footprint.

In addition to sustainability, upcycled foods are gaining popularity due to their nutritional value. Many products made from upcycled ingredients, such as snacks made from fruit or vegetable peels or flour from spent grains, are rich in fiber, vitamins, and minerals. These attributes appeal to health-conscious consumers seeking nutritious options. As innovation in this space continues to evolve, upcycled foods are expected to become a staple in the global food system, contributing to a more sustainable and healthier future.

Dynamics

Growing Role of Upcycled Food Products in Sustainable Solutions

The growing global waste crisis, highlighted in the Global Waste Management Outlook 2024 by UNEP, is driving the urgent need for sustainable solutions. With the amount of waste projected to rise from 2.1 billion tonnes in 2023 to 3.8 billion tonnes by 2050, the economic burden of waste management is set to skyrocket. In 2020, the direct cost of managing waste was USD 252 billion, but when considering the hidden costs from pollution, health impacts, and climate change, it surged to USD 361 billion.

Without significant intervention, this could reach USD 640.3 billion by 2050, making it clear that urgent action is required to curb these costs and environmental damages. This pressing issue has fueled the rapid growth of the upcycled food products market, which turns food surplus, by-products, or waste into valuable products. By converting waste into usable products, this market addresses both the need for waste reduction and the growing demand for sustainable alternatives.

Upcycled ingredients fit seamlessly into the circular economy model, which could significantly reduce waste management costs while also creating new economic opportunities. As consumers and industries increasingly prioritize sustainability, the upcycled food market is poised to play a crucial role in minimizing environmental impact and fostering a more sustainable, resource-efficient food system.

Advances in Food Technology

Advances in food technology are driving the growth of the upcycled food products market by making it easier to turn food waste into high-quality, edible products. New upcycling methods are improving the quality, safety, and appeal of ingredients that would otherwise be discarded. This makes upcycled food more attractive to consumers who are interested in sustainability and reducing waste, helping to create unique and environmentally friendly products.

For instance, the Cacaofruit Bites were launched by Gudrun in November 2023. The cacao fruit, which is usually thrown away after the cacao beans are harvested for chocolate, is now being used to create a new chocolate product. This upcycling of the cacao fruit helps reduce waste while offering a delicious and sustainable treat, aligning with the demand for eco-friendly products.

Similarly, in February 2024, Warner's Distillery launched Trash and Treasure Spirits, a range of alcoholic drinks made from surplus food, including unwanted fruits and peels. These ingredients, which would normally go to waste, are being transformed into high-quality spirits. This innovation shows how food technology can creatively repurpose waste into premium products, helping to reduce food waste while offering unique, sustainable options for consumers.

Higher Production Costs

Unlike traditional food production, which relies on well-established supply chains and processes, upcycling requires significant investments in specialized infrastructure such as processing facilities, storage, and packaging. These additional investments can be costly for businesses, particularly smaller ones, making it more challenging to achieve profitability. Smaller-scale operations, in particular, may struggle to absorb these costs without the benefit of large-scale production.

Furthermore, as the market for upcycled foods is still in its growth phase, the industry has not yet realized the full benefits of economies of scale. Without the ability to produce at a larger scale, upcycled food products often face higher unit costs, which can make them less price-competitive compared to conventional food products. This price disparity can discourage price-sensitive consumers from opting for upcycled options, especially when cheaper, traditional alternatives are readily available.

Segment Analysis

The global upcycled food products market is segmented based on source, ingredient type, product, distribution channel, application, and region.

Solution to The Global Food Waste Crisis

The global upcycled food products market is segmented based on source into food waste, agricultural by-products, and brewery and distillery Waste. Food waste is the dominant source driving the global upcycled food products market, accounting for a significant portion of municipal solid waste. As MSW is projected to rise from 2.1 billion tonnes in 2023 to 3.8 billion tonnes by 2050, according to the United Nations Environment Programme, food waste remains a major issue, with much of it still edible but discarded.

Upcycled food products help tackle this problem by repurposing food scraps, surplus ingredients, and imperfect produce into new, valuable items, promoting sustainability. The dominance of food waste is clear as it is the primary source of upcycled products. While other by-products like agricultural residues and brewery waste contribute, food waste remains the largest and most impactful segment. As demand for eco-friendly, sustainable food options grows, upcycled food products will continue to expand.

Geographical Penetration

Demand For Sustainability in North America

North America dominates the market with growing consumer demand for sustainability, strong innovation in food technology, and supportive infrastructure. Increasing consumer awareness of food waste's environmental impact has driven demand for sustainable and upcycled food products, which help reduce waste while offering nutritious alternatives. Additionally, North American companies are leading the way in innovation, developing a wide range of upcycled ingredients from food by-products.

Government support further enhances the market expansion. The US government's commitment to addressing food waste is seen with the June 2024 unveiling of the National Strategy for Reducing Food Loss and Waste. This initiative, central to President Biden's climate agenda, aims to reduce food waste by 50% by 2030, addressing the critical role food waste plays in methane emissions while promoting a circular economy.

By supporting this effort, US is positioning itself as a global leader in sustainable food systems and organic waste recycling, providing a boost to the growing $46 billion upcycled ingredients market, which is used for the development of upcycled food products. This government-backed strategy further strengthens North America's leadership in sustainable food practices, creating a more favorable environment for the continued growth of upcycled food products.

Competitive Landscape

The major global players in the market include AIO, Bake Me Healthy, Barnana, cascarafoods, Green Bowl Foods, CRUST Group, I Am Grounded, Matriark Foods, Oisix Ra Daichi Co., Ltd., and Pluck Tea.

Sustainability Analysis

The upcycled food products market is experiencing significant growth driven by an increasing consumer demand for sustainable and eco-friendly alternatives. By repurposing unwanted ingredients that would otherwise go to waste, upcycled food products help reduce food waste, a major global environmental issue. This approach not only minimizes environmental impact but also promotes a circular economy by turning food by-products into valuable, marketable items.

As consumers become more aware of sustainability, they are increasingly willing to support brands that contribute to reducing waste and lowering their carbon footprints. This market also presents significant opportunities for innovation and business growth. Companies in the upcycled food space are developing creative ways to transform food waste into high-quality, nutritious products, expanding the variety of upcycled goods available.

By Source

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

By Ingredient Type

• Proteins
• Fibers
• Oils and Fats
• Flours
• Sweeteners
• Others

By Product

• Snacks & Beverages
• Bakery & Confectionery
• Ingredients & Additives
• Meat & Seafood
• Pet Food
• Other

By Distribution Channel

• Supermarkets & Hypermarkets
• Specialty Stores
• Online
• Other

By Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In November 2023, Gudrun launched Cacaofruit Bites, created through upcycling to reduce waste by turning side streams into valuable ingredients.
• In August 2024, Upcycled Foods, Inc. unveiled Atoria's Family Bakery Mini Upcycled Naan, a collaboration with the Upcycled Foods Lab. These mini flatbreads are made from upcycled barley, wheat, and rye flour.
• In February 2024, Warner's Distillery launched Trash and Treasure Spirits, a range of spirits made from surplus food and ingredients, including unwanted fruits and peels that would otherwise go to waste.

Why Purchase the Report?

• To visualize the global upcycled food products market segmentation based on source, ingredient type, product, distribution channel, application, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous upcycled food products market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global upcycled food products market report would provide approximately 70 tables, 70 figures and 195 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies