Market & Trends

Upcycled Ingredients Market to Rapidly Gain Traction as Consumers Demand Solutions to Food Waste

According to a report by FACT.MR, the global upcycled ingredients market will grow with a CAGR of 6.4% over the forecast period 2022-2032, reaching a valuation of $512 million.

Currently, a significant proportion of the food produced worldwide is wasted, which has a harmful impact on the environment. As consumer awareness of food waste increases, a growing number of companies are attempting to solve the issue by upcycling ingredients that would otherwise be discarded.

However, the industry has faced some challenges, such as a lack of oversight when sourcing upcycled ingredients. Additionally, the nutrients in some upcycled foods may not be readily available. Some companies are addressing this by developing methods to extract nutrients from byproducts usually regarded as waste; for example, Austria’s Kern Tec has developed a method to separate the seeds from apricot kernels and turn them into dairy alternatives. Another company, the UK’s Upp, extracts protein from unharvested broccoli crop biomass.

While the growth of the upcycled foods industry has initially been relatively slow, it is expected to gain rapid traction in the coming years, particularly with the introduction of the Upcycled Certified Standard. This certification from the Upcycled Foods Association provides consumers with reassurance that ingredients are safe and have full nutritional value.

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The US leads the market

By region, North America currently dominates the upcycled foods market by a large margin, with the US expected to account for 32.1% of global market share by 2032. Europe is also a key market, with France, Germany, and the UK expected to have the highest market share in the region.

Rising demand for plant-based ingredients will be a significant driver of growth in Europe. Upcycled ingredients are increasingly being used to produce alternatives to animal products such as meat and eggs, along with high-emission crops such as coffee.

By ingredient, upcycled starch will have the largest market share, followed by proteins, fiber, vitamins and minerals.

“Rising social awareness regarding the negative impact of severe food wastage across the globe is drawing attention to upcycled ingredients among the global population,” says the report. “Consumers are progressively insisting on speeding up action regarding food product disposal, such as food upcycling. This factor is anticipated to upsurge the claim for upcycled products, which reinforces the demand for upcycled ingredients and food waste recycling machines.”

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