Market Introduction

The global upcycled foods market was valued at USD 64 billion in 2024 and grew at a CAGR of 8% from 2025 to 2034. The market is expected to reach USD 138.17 billion by 2034. The increasing demand for sustainability will drive the growth of the global upcycled foods market.

Upcycled foods are the food products which are manufactured using the ingredients that could have ended up as waste but are not harmful and unhealthy to consume. Such ingredients may be leftover food, manufacturing by-products, or normally discarded edible food parts, such as fruit peels, pulp or spent grains. The intention of upcycled food is to minimize food waste as well as to enhance sustainability and gain maximum value using the food supply system. Upcycling is innovation-driven conversion of ingredients into value-added products with the involvement of culinary creativity. Such a solution fits into the patterns of the circular economy. The list of products covered by the upcycled food industry is broad and includes food ingredients or snacks, canned food/drinks, condiments, baking goods, pet food, and supplements. As an example, one can upcycle the pulp of juiced fruits and vegetables into flours. Upcycling of food is often being implemented in many startups and existing food companies in order to create new food products that match the demands of environmentally friendly consumers. Certification organizations like the Upcycled Food Association provide certification programs to make it easy for consumers to determine products containing verified upcycled ingredients to increase transparency and consumer confidence. The upcycled food market has been a major beneficiary in the face of the growing global concern over food loss and waste which are estimated to take up more than a third of all the food produced. This problem can be resolved by upcycled foods as they provide a scalable solution to this problem and aid sustainable agriculture, reduce greenhouse gases, and help with food security. Countries, non-governmental organizations, and even businesses are helping to push such initiatives and innovations to include upcycled ingredients in the mass food supply.

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Recent Development

• In an effort to further reduce food waste, Del Monte Foods announced that all nine of its JOYBA Bubble Teas have been awarded Where Food Comes From, Inc.'s Upcycled Certified accreditation. Over the previous year, Del Monte Foods has effectively recovered 265 tonnes of sweetened syrup through these nine beverages, lowering food waste through more environmentally friendly methods. Where Food Comes From, Inc. has certified all nine JOYBA Bubble Tea SKUs as Upcycled. Over the previous year, Del Monte Foods has effectively recovered 265 tonnes of sweetened syrup, lowering food waste and encouraging environmentally friendly methods. Where Food Comes From, Inc. has certified all nine JOYBA Bubble Tea SKUs as Upcycled.

Market Dynamics

Drivers

The increasing need to reduce waste and achieve sustainability – Innovation is one of the drivers of product development. Food innovators and entrepreneurs are getting more and more creative in the processing of by-products and excess products, including fruit pulp, vegetable peels or spent grains, to create new, value-added products. This not only assists in minimizing waste but also come up with new tastes and nutritional values making it attractive for the present-day consumers. The increased attention to sustainability as a factor in the form of environmental, social, and governance (ESG) objectives are being embraced by many food businesses and compel them to practice the principles of the circular economy through reducing wastes and increasing resource utilization. With such ideas, the upcycled foods are an appropriate addition to these goals, as the companies can demonstrate their green-friendly ways of doing business. This can further build brand-loyalty and will result in the attraction of an expanding group of shoppers who want significant buying options. New technology in food processing and preservation also makes upcycling more reliable and scalable in that food waste can be safely converted into marketable ingredients. Companies can also cut on the costs of raw materials thus getting better profit margins without affecting the quality of the product because they will be able to use what could otherwise have gone to waste.

Restraints

Production and supply chain inefficiencies – Product quality and continuity are one large obstacle. The use of by-products or excess ingredients in upcycled foods can be variable in terms of composition terms and freshness since they are based on by-products, so it may be challenging to guarantee standardization in taste, texture, and the nutritional content of the final product. This fluctuation makes it difficult to manufacturers that have to cope with consumer demands and governmental regulations. The chain of upcycled ingredients supply is also very difficult. Processing and sorting of food waste or excess products takes specific logistics and infrastructure thus, making it a complex operation and quite expensive. There are technology constraints, which imply that upcycling can only be scalable and efficient to a certain extent. Despite these impressive developments, other processes are still expensive or not working on large scale. This will also make it difficult to compete with the conventional food products basing on price and availability. The additional processing required by upcycled foods, mostly certifications and other quality controls, evidence to increase manufacturing cost against the non-compounds of traditional foods. These expenses can be converted to price increases on the consumers, and this is likely to inhibit the market’s growth.

Opportunities

Evolving consumer behaviours and regulations – the rise in consumer awareness concerning the ecological consequences of food waste is driving the market’s growth. With the increased knowledge about sustainability and climate change, individuals are proactively searching socially responsible products, one of which is upcycled food that will help save this waste and contribute to a more sustainable economy. Any increase in eco-consciousness of consumers is an influential force that persuades brands and retailers into making more upcycled products available. The factor of a government policy and the governmental initiatives is also important. Numerous nations have issued policies and campaigns to decrease the amount of food waste and enhance sustainability within food channels. These policies establish an enabling environment to upcycled food products that promote innovations and offer incentives to companies to use a model of the circular economy. Also, the whole food industry is being driven into sustainability by the issues of climate change. As the production of food is a major contributor to greenhouse gas emission, upcycling enables the mitigation of carbon footprint due to the overall decrease of wastes and maximal utilization of raw materials. There is an additional boost given by non-governmental organizations (NGOs) and certification organizations, which create awareness, contribute to research, and offer certifications which make consumers find credible upcycled products. Such certifications raise the levels of consumer trust and acceptance in the market.

Segment Analysis

Regional segmentation analysis

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the most significant global upcycled foods market, with a 37% market revenue share in 2024.

The North American region is the dominant region in the world upcycled foods market because of the combination of better consumer awareness, developed infrastructure, favourable regulatory conditions, and higher involvement of the industry. The increased consciousness contributes to the growth of the market since the shopkeepers are proactive in terms of consuming upcycled foods because they save food and feed into environmental sustainability. This is coupled with the availability of new innovative startups and established food companies that will aggressively invest in research and development which will expand market farther in North America. These enterprises use cutting-edge-technologies to turn food by-products into high-quality, safe, and nutritious ingredients so that upcycled products will be more affordable and attractive. Further North America is well-endowed with supply chains and distribution networks, supermarkets and access to online retailing, which enable effective penetration within the market and availability of the products. The government policies and initiatives in the respective region also play an instrumental role in assisting upcycled foods. Several sustainability initiatives, food waste reduction objectives, and incentives support the implementation of circular economy principles among businesses, which results in creating a favourable environment in the market.

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• The new breads were made from scratch and include sourdough from Puratos, a provider of bakery ingredients, combined with ReGrained SuperGrain, UP Inc.'s main recycled ingredient. The new items are a part of Misfits Market and Up. Inc.'s ongoing endeavour to cut down on food waste and provide customers with high-quality, mission-driven products.

Product type Segment Analysis

The product type segment is divided into snacks and bars, bakery products, beverages, condiments and sauces, dairy alternatives, pet food, supplements and others. The snacks and bars segment dominated the market, with a market share of around 33% in 2024. Their comparatively easy formulations enable the manufacturers to explore with various by-products to develop creative new designs which are attractive and make the product appealing to the health conscious and environmentally conscious customers. Further, Snacks and Bars serve as the ideal medium of increasing the demand of convenient and easy to carry food items, a pattern that is only picking up pace across continental spreads, with hectic schedules taking precedence. This segment dominance is also aided by consumer preferences of wellness and sustainability. Most consumers are interested in natural, clean label snacks that also helps to avoid the waste of food. The perfect option is upcycled snacks and bars, which not only have nutritional advantages but also take care of reducing food waste. Such a balance between health and sustainability is very appealing to both millennials and Gen Z customers, who are the main target groups in the market that will continue the development. Also, the manufacturing attitude to snacks and bars is that they typically do not have to be as complexly processed as other categories of food, thus upcycling is possible at an industrial level with a greater level of affordability. Distribution and other retail adoption are also eased by the fact that they have a longer shelf life than fresh products.

• The second closing of the Series A investment round has been announced by REDUCED, a Copenhagen-based company that produces creative and tasty repurposed food ingredients. This brings the total amount of money raised in this round to €8 million. The European Circular Bioeconomy Fund (ECBF), which has previously invested in AmphiStar and Weenat, made the investment. With the increased financing from ECBF, REDUCED will strengthen its innovative product line and expedite its efforts to expand into new markets. It coincides with REDUCED's ongoing expansion of its footprint in the DACH area and abroad, strengthening its position in the ingredient and food service industries.

Source ingredient Segment Analysis

The source ingredient segment is divided into fruit and vegetable waste, grain and cereal by-products, dairy and meat by-products, coffee and tea waste and others. The fruit and vegetable waste segment dominated the market, with a market share of around 36% in 2024. The source ingredient segment of the global upcycled foods market is dominated by fruit and vegetable waste based on its volume, nutritional content and the capability of being fed into any food product. A large part of food waste worldwide happens to fruits and vegetables, since most of their constituents of peels, pulp, core and parts that are not perfect or are excessive in production are wasted as they are plucked, processed or distributed. This excessive supply of by-products means that the fruit and vegetable waste is a good raw material that upcycling efforts can utilise as a cost-effective source and sustainable source of ingredients to food industries. Fruit and vegetables waste has nutritional value in terms of fibre, vitamins, antioxidants, and other bioactive elements that are very desirable in health-conscious consumer pool. Such nutritional advantages enable the products developed in the upcycled fruit and vegetable waste to meet rising demand in terms of functional food that is wellness-supportive and diet-balancing. Also, the diverse range of fruits and vegetables allows product developers to come up with a versatile array of flavour combinations and textures, raising the innovativeness opportunities of snacks, beverages, bakery products and others. Environmentally, the use of fruit and vegetable waste is a significant part of food waste reduction. Technologies of fruit and vegetable by-product processing have also improved to derive the valuable fraction from fruit and vegetables at an efficient rate without the compromise of either safety or quality of the resulting products. Further, upcycled ingredients made of fruits and vegetables are associated with being natural and wholesome, and hence, more consumer familiarity and acceptability are expected.

• In an effort to combat food waste, Salt & Straw has announced the reintroduction of its Upcycled Foods Series, which will go on sale on April 4 in scoop shops, including Bishop Ranch, located at 6000 Bollinger Canyon Road in San Ramon. Now in its third year, the annual Earth Month campaign turns frequently wasted items into unusual and decadent ice cream flavours. In order to provide a tasty response to the millions of pounds of food that are wasted annually in the United States, co-founder and chief ice cream innovator Tyler Malek has teamed up with seven sustainability-focused companies to create a lineup that highlights overripened bananas, forgotten coffee beans, excess stone fruit, and more.

Distribution channel Segment Analysis

The distribution channel segment is divided into supermarkets/hypermarkets, online retail, specialty stores, convenience stores, food service and others. The supermarkets/hypermarkets segment dominated the market, with a market share of around 45% in 2024. The supermarkets and hypermarkets have gained a leading role as the upcycled foods market main channel of distribution because of its large outreach, a variety of consumers, and their ability to promote the normative uptake of sustainable products. These big-box stores have generous shelves and wide demographic, which is why they are perfect to promote their products as upcycled food stores by starting a broad audience. The good supply chain is one of the major strengths of the supermarkets/hypermarkets, and it has facilitated efficient stocking, inventory management, and product visibility. This will help the upcycled food companies to distribute their products efficiently and deliver a coherent level of products, which is important in the aspect of gaining consumer confidence and repeat purchases. Moreover, these retailers spend quite a lot on marketing and in-store promotion, which could be of great assistance to the upcycled food brands because of their awareness campaign that help the consumers to understand how helpful it is to reduce waste and pick the sustainable alternatives. In addition, buying power and relations with manufacturers tend to make supermarkets and hypermarkets to act as industry standard setters and trend shapers in many ways. The fact that they promote upcycled foods gives credibility and indications of market readiness that other channels and consumers are advised to adopt. Lastly, one-stop shopping convenience and comparison of a wide range of items within a single store also makes the supermarkets and hypermarkets consumers favourite in choosing a sustainable solution to shopping needs.

• For a $2.5 million investment and development program, the Kroger Co.'s Zero Hunger Zero Waste Foundation is looking for inventors in "upcycled" food and products. Ten firms will be chosen by the initiative, which is administered in collaboration with Village Capital, to earn $100,000 in upfront seed grant money. Following that, the grantees will take part in a virtual workshop centred on developing technical skills, preparing for funding, and connecting with a network of mentors and investors in the food system. In addition to the opportunity to apply for follow-on funding, they will have special access to the leaders and partners of Village Capital and the foundation.

Application Segment Analysis

The application segment is divided into human consumption, animal feed and others. The human consumption segment dominated the market, with a share of around 55% in 2024. Within the global market of upcycled foods, human consumption represents the most significant application segment, which is explained by the fact that upcycled ingredients can become an applicable solution to the problem of sustainability and the issue of shifting consumer preferences in the food sector as well. There is an increasing number of consumers who are on the hunt of acquiring products that will not only satisfy them in terms of taste but also save the environment and improve their health. Upcycled foods that can be used directly as human food (e.g. snacks, beverages, bakery and dairy alternatives) specifically respond to such needs by offering food by-products and surplus as a nutritious, attractive, and sustainable foodstuff. To produce less food waste is the trend that is built by means of the awareness of the environmental consequences of food waste and increasing the popularity of sustainable diets. Such two-fold advantage appeals a great deal to the health conscious and environment-sensitive vast consumer base stimulating demand in this market. In addition, the human consumption product innovation area is immense, covering convenient snacks, ready to eat; meal ingredients, and lifestyle compatible functional foods. Such products have better visibility and shelf display location in retail set ups, which will help bring upcycled ingredients into a regular diet. The fact that sustainability can be combined with taste, health, and convenience is what makes human consumption the primary area of application in the global upcycled foods market both by investment of the industry and the attraction to consumers globally.

Some of the Key Market Players

• Renewal Mill
• ReGrained
• Misfits Market
• Toast Ale
• Barnana
• WISErg
• The Good Fill
• Misfit Juicery
• Circular Food
• Rubies in the Rubble
• Full Harvest

Report Description