Upcycled Food Products Market Size, By Type (Food and Beverages, Personal Care Products, Household Products, Pet Food), By Source (Food waste, Agricultural by Products, Brewery and Distillery Waste), Distribution Channel & Forecast 2023 – 2032

Upcycled Food Products Market Size

Upcycled Food Products Market size was valued at USD 54.5 billion in 2022 and is poised to register over 5.7% CAGR from 2023 to 2032. Growing awareness and concern for environmental sustainability have spurred consumers to seek eco-friendly alternatives, favoring products that reduce food waste and minimize the carbon footprint. A shift in consumer preferences towards healthier and more nutritious options has led to an increased demand for upcycled foods, which often incorporate surplus or byproduct ingredients from the food supply chain.
 

As per a survey published in NCBI in April 2023, sixty percent of the 415 participants surveyed, including health professionals and health sciences university students, consider sustainability in food production to be “important” or “very important”. In addition, more than half the respondents expressed their willingness to pay higher prices for more sustainably produced diets. Furthermore, governmental initiatives and regulations promoting sustainable practices have encouraged food manufacturers to adopt upcycling methods, fostering innovation and driving market growth.
 

Upcycled Food Products Market Growth Drivers and Restraints

Increasing consumer awareness and concern for environmental sustainability has propelled the demand for eco-friendly and waste-reducing food options, including upcycled food products. However, limited consumer awareness and skepticism about upcycled products, as well as challenges in establishing consistent supply chains and overcoming regulatory hurdles may restrain market expansion to some extent. Despite these obstacles, the growth potential of the upcycled food products industry remains significant due to its positive environmental impact and increasing consumer interest in sustainable food solutions.
 

COVID-19 Impact

On one hand, the COVID-19 crisis has raised awareness about the importance of sustainable practices, leading to increased interest in eco-friendly food options, including upcycled products. As consumers sought healthier and more resilient food choices during lockdowns, the demand for nutritious upcycled foods surged. For instance, as per the International Food Information Council’s 2020 Food & Health Survey, over 85% stated that the coronavirus pandemic had caused a change in their food habits.
 

However, the pandemic also presented challenges in terms of disrupted supply chains and distribution channels, affecting the availability and accessibility of upcycled products. Despite the initial hurdles, the market demonstrated resilience, and as the pandemic subsided, the growing focus on sustainability and conscious consumption is likely to continue driving industry expansion.
 

Upcycled Food Products Market Trends

One of the key trends in the upcycled food products industry is the growing emphasis on product innovation, with companies exploring new and creative ways to upcycle food waste into appealing and nutritious products. In May 2023, Upcycled Foods, Inc. and Stone & Skillet, LLC jointly unveiled the introduction of the Super Grains English Muffin, its new Upcycled Certified and Non-GMO offering, representing a commitment to both sustainability and product integrity.
 

The incorporation of ReGrained SuperGrain+ - an upcycled hero ingredient derived from the nutrient-rich grain byproducts of beer brewing, is designed to improve the nutritional value of the bread, with high concentrations of dietary fiber, plant protein, and prebiotics. In addition, collaborations between food manufacturers, retailers, and sustainability organizations have increased, leading to the development of more efficient supply chains and distribution networks for upcycled products.
 

Upcycled Food Products Market Analysis

Upcycled food products market share from the online distribution channel segment will register substantial growth over the forecast period. The growing popularity of e-commerce platforms has made it more convenient for consumers to access and purchase upcycled products from the comfort of their homes. In addition, online channels allow upcycled food brands to reach a wider audience, expanding their market reach beyond traditional brick-and-mortar stores. The ability to provide detailed information about the sustainability and environmental benefits of these products online is appealing to environmentally conscious consumers.
 

The food waste source segment held over 38% share of the upcycled food products market in 2022. Growing environmental awareness has prompted consumers to seek sustainable and eco-friendly options to reduce food waste. Moreover, upcycled foods offer a solution to address the global food crisis by utilizing surplus ingredients that would otherwise go to waste.
 

For instance, in May 2022, Do Good Foods announced the launch of its inaugural product, Do Good Chicken. This innovative offering was the result of the company's upcycling process, where surplus food from grocery stores is repurposed into nutritious feed for the chickens. As per the company’s claims, each chicken product would prevent close to four pounds of food waste from entering landfills, thereby averting the generation of approximately three pounds of greenhouse gases.
 

Additionally, health-conscious consumers are drawn to the nutritional benefits of upcycled products, which often contain higher levels of fiber, protein, and essential nutrients.
 

North America upcycled food products market size dominated more than USD 20.6 billion in 2022, due to increasing consumer awareness and concern for sustainability. According to the Upcycled Food Association, over 35 million tons of food are wasted in the United States each year, amounting to nearly 40% of the country’s overall food production.
 

As people become more conscious of food waste's environmental impact, they are actively seeking eco-friendly alternatives. Upcycled food products offer a compelling solution, utilizing surplus or byproduct ingredients to create nutritious and environmentally responsible options. This growing awareness, coupled with the emphasis on healthy, sustainable lifestyles, is driving the upward trend in the demand for upcycled food products in the region.
 

Upcycled Food Products Market Share

Some of the leading companies involved in the upcycled food products market are

• ReGrained
• Toast Ale
• RISE Products
• Misfit Foods
• US Foods
• Agricycle Global
• Pulp Pantry
• SUPERFRAU
• Blue Circle Foods
• Riff
• Barnana
• Planetarians
   

Upcycled Food Products Industry News

• June 2023 - Barnana PBC unveiled the nationwide retail release of its first Upcycled Certified offering – the Organic Plantain Scoops crafted with the peel. The innovative product marks a significant milestone for the brand, demonstrating its dedication to combatting food waste by sourcing upcycled plantains and minimizing byproduct waste.
   
• February 2023 - Planetarians secured an investment of USD 6 million during its Seed II investment round, aimed at facilitating the large-scale production of its innovative vegan meat blocks, crafted using two upcycled ingredients - oil cakes and brewer's yeast, in order to cater to the food service industry. With the funds, the company will construct a pilot facility capable of manufacturing substantial quantities of vegan blocks annually, signaling its transition to a full-fledged commercial production phase.
   

This upcycled food products market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2018 to 2032, for the following segments:

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Market, By Type

• Food and beverages
• Personal Care Products
• Household Products
• Pet Food
• Others

Market, By Source

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

Market, By Distribution Channel

• Online
• Offline

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Indonesia
  • Malaysia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Egypt