Upcycled Ingredients Market is predicted to reach USD 402.63 million at a CAGR of ~5.9% during the forecast period

Market Research Future (MRFR) has published a cooked research report on the “Upcycled Ingredients Market” that contains the information from 2022 to 2030.

Global Upcycled Ingredients Market

The global upcycled ingredients market is a growing industry that is gaining traction due to the increasing awareness about food waste reduction and the environmental impact of food production. Food waste is a significant problem globally, and it has been estimated that about one-third of all food produced is lost or wasted each year. This has significant environmental impacts, including contributing to greenhouse gas emissions, deforestation, and depletion of natural resources such as water and land. For example, the Food and Agriculture Organization (FAO) of the United Nations estimates that the food waste is equivalent to 1.3 billion tonnes, which is equivalent to the 6% emissions of the entire transportation sector globally.

One way to reduce food waste and minimize the environmental impact of food production is through upcycling. Upcycling is the process of turning food byproducts and waste into new products for consumption. For instance, juice pulp that would typically be discarded can be upcycled into fiber-rich food products like crackers or used as a natural food coloring. Another example is using discarded fruit and vegetable scraps to create nutrient-dense broths or soups. The upcycled ingredients market is gaining momentum as consumers and companies become more aware of the benefits of reducing food waste. Additionally, food waste startups such as Imperfect Foods and Misfits Market have gained significant attention in recent years by offering discounted "ugly" produce to consumers.

Market Synopsis

According to the MRFR analysis, The global upcycled ingredients market was valued at USD 258.30 million in 2021 and is projected to reach USD 402.63 million by 2030 at a CAGR of 5.9%.

Upcycled ingredients refer to food ingredients that are derived from food byproducts or waste materials that would typically be discarded during the food production process. Upcycling is the process of transforming these byproducts and waste materials into high-quality, safe, and nutritious ingredients that can be used in a variety of food products. Upcycling is different from traditional recycling, which involves breaking down materials to create new products. Upcycling involves repurposing materials to create new and more valuable products. For example, upcycling food waste may involve transforming fruit and vegetable scraps into nutritious broths or snacks, or converting spent grains from the brewing process into flour or other baking ingredients.

One of the key drivers for the worldwide market is the increasing awareness about food waste reduction and the environmental impact of food production. Secondly, Rising demand for natural and organic products. However, the high processing costs may limit growth. Hence, the expansion of product offerings through innovation and research and development is expected to create lucrative growth opportunities for players operating in the Upcycled Ingredients market during the forecast period. Furthermore, the growing demand for plant-based and alternative protein sources has derived further growth in the market.

COVID-19 Impact on Upcycled Ingredients Market

The global pandemic, COVID-19, has created a crisis world over. The epidemic, which has affected more than 195 nations, has already had an impact on the global economy and is expected to cause chaos and the start of a global recession. People's life has been entirely turned upside down by the COVID-19 epidemic, which is growing quickly in cases every day. The COVID-19 impact across industries is different. Amid the constant fear and panic of the pandemic, consumers are highly concerned about keeping a check on their health. Although vaccination rates are increasing globally, it is now essential to boost immunity to fight the coronavirus in addition to maintaining proper hygiene and following all established medical advice. Even the guidelines provided by WHO (World Health Organization) in their COVID-19 analysis suggest the world population consumes immunity-boosting foods. The consumption of vitamins, minerals, dietary fiber, proteins, and antioxidants is included in the WHO's nutrition recommendations for adults during the COVID-19 epidemic as being crucial for the human body to combat this pandemic. This has increased the intake of functional foods and supplements among the population and is expected to boost the growth of the Upcycled Ingredients market in the coming years.

The worldwide lockdown has certainly affected the production of Upcycled Ingredients. The firms are having trouble keeping up with demand because they are either running production with insufficient workers or have stopped production to allay employee worries. As the global economy struggles with the pandemic situation, its adverse impact on the global trade and supply chain is growing owing to the rapid weakening of global investment flows. A considerable limitation in transportation has resulted from rigorous containment measures enforced by governments of various nations and preventative efforts to control the effects of the outbreak, having a ripple effect around the globe. Transportation is crucial in the supply chain of any market, as it is responsible for transferring raw materials to application industries and then distributing the final product from the manufacturers to the retail market. The low availability of raw materials and limited production capacities of the manufacturers are anticipated to create a demand and supply gap, thereby resulting in increased prices of Upcycled Ingredients for the next couple of months.

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Competitive Landscape

The global upcycled ingredients market is fragmented and consists of many organized and unorganized industry players. The key players in the global upcycled ingredients are focusing on growth strategies such as innovation in products and developing technologies on a global level to gain a maximum share of the global market. The leading companies competing in the worldwide market for upcycled ingredients are Rise, ReGrained, Comet Bio, Outcast, Netzro, Kaffe Bueno, SunOpta, Greentech, American River AG, and Others.

Segmentation

By Ingredient Type

1. Upcycled Starch: Upcycled starch is a versatile ingredient that is sourced from starchy by-products such as potato peelings and cassava peels. It has a wide range of applications in the food industry, including as a thickening agent, gelling agent, and stabilizer in a variety of food products. Upcycled starch is also used in the production of bioplastics and biofuels. The market for upcycled starch is driven by the increasing demand for sustainable and eco-friendly food products.


2. Upcycled Proteins / Powder: Upcycled proteins/powder are derived from animal or plant processing by-products, such as whey, soy, and pea protein. These ingredients have a high protein content and can be used in a variety of food products, including bars, snacks, and beverages. The market for upcycled proteins is driven by the growing demand for protein-rich and plant-based food products.


3. Upcycled Flour: Upcycled flour is made from milling the by-products of cereal grain processing, such as wheat bran and rice bran. It is a rich source of dietary fiber, minerals, and vitamins and can be used in baked goods, snacks, and other food products. The market for upcycled flour is driven by the increasing demand for healthier and sustainable food products.


4. Upcycled Dietary Fiber: Upcycled dietary fiber is derived from the by-products of fruits and vegetables processing, such as apple pomace and carrot pulp. It is a rich source of dietary fiber and can be used in a variety of food products, including baked goods, snacks, and beverages. Upcycled dietary fiber is also used as an ingredient in animal feed and pet food.


5. Upcycled Ethanol: Upcycled ethanol is derived from the by-products of alcoholic beverage production, such as beer and wine. It can be used as a flavoring agent and preservative in food products. Upcycled ethanol is also used as a biofuel. The market for upcycled ethanol is driven by the increasing demand for sustainable and eco-friendly energy sources.


6. Upcycled Oils: Upcycled oils are derived from the by-products of oilseed processing, such as soybean and canola oil. These oils have a high nutritional value and can be used in a wide range of food products, including dressings, sauces, and snacks. The market for upcycled oils is driven by the growing demand for healthier and sustainable food products.


7. Upcycled Vitamins: Upcycled vitamins are derived from the by-products of food processing, such as fruit pulp and vegetable peelings. These vitamins can be used as nutritional supplements in a variety of food products. Upcycled vitamins are also used in the production of animal feed and pet food.


8. Upcycled Electrolytes: Upcycled electrolytes are derived from the by-products of food processing, such as coconut water and fruit juice. They are used in sports drinks and other functional beverages to replenish electrolytes lost during exercise. The market for upcycled electrolytes is driven by the growing demand for healthier and functional beverages.


9. Upcycled Antioxidants: Upcycled antioxidants are derived from the by-products of food processing, such as fruit and vegetable pulp. These antioxidants can be used in a variety of food products, including beverages and snacks, to enhance their nutritional value. The market for upcycled antioxidants is driven by the increasing demand for healthier and functional food products.


10. Upcycled Minerals: Upcycled minerals are derived from the by-products of food processing, such as bone and shell waste. These minerals can be used as nutritional supplements in a variety of food products. Upcycled minerals are also used in the production of animal feed and pet food.

By Source

1. Plant-based: The plant-based segment of the global upcycled ingredient market includes ingredients derived from various plant parts such as seeds, peels, flowers, fruits, and grains. Upcycling involves transforming byproducts, waste, or excess materials into valuable resources. In the food industry, upcycled ingredients provide a sustainable solution for reducing waste and improving resource efficiency. Plant-based upcycled ingredients are used in various food and beverage applications such as bakery, confectionery, snacks, and beverages. For instance, upcycled flour made from fruit and vegetable pulp is used to make bread, crackers, and snacks. Upcycled fruit and vegetable powders are used as natural food coloring and flavoring agents in the food and beverage industry.


2. Animal-based: The animal-based segment of the global upcycled ingredient market includes ingredients derived from animal byproducts such as eggshells and animal bones. These ingredients are rich in nutrients such as calcium, collagen, and protein, which are beneficial for human health. Upcycled animal-based ingredients are used in various food and beverage applications such as functional foods, supplements, and pet food. For example, upcycled eggshell powder is used as a calcium supplement in food and beverages, while upcycled animal bone powder is used as a source of collagen in functional foods and supplements.


3. Others: The "others" segment of the global upcycled ingredient market includes ingredients derived from various sources such as coffee grounds, brewery byproducts, and food waste. These ingredients are rich in nutrients and have a high potential for upcycling. Upcycled ingredients from coffee grounds and brewery byproducts are used in the food and beverage industry as natural flavoring agents and functional ingredients. Upcycled ingredients from food waste are used in various applications such as animal feed, fertilizers, and biofuels. Upcycling these ingredients helps reduce waste and improve resource efficiency.

By Application

1. Food And Beverages: Upcycled ingredients are being used in a variety of food and beverage products. For example, ReGrained is a company that uses upcycled grain from the beer brewing process to create snack bars. The bars are marketed as a sustainable and nutritious snack option, and the company estimates that they have saved over 1 million pounds of grain from going to waste. Another example is the use of upcycled fruit and vegetable pulp in juice and smoothie products. Companies like Misfit Juicery and Renewal Mill are using pulp that would normally be discarded to create nutritious and flavorful drinks.


2. Cosmetics and personal care: Upcycled ingredients are being used in a variety of cosmetic and personal care products. For example, Koffee’Up by Givaudan Active Beauty and Kaffe Bueno is a skincare brand that uses upcycled coffee grounds in its products. The coffee grounds provide gentle exfoliation and are a sustainable alternative to synthetic microbeads. Another example is the use of upcycled fruit and vegetable extracts in hair care products. Companies like UpCircle Beauty and Seed Phytonutrients use leftover fruit and vegetable extracts to create nourishing shampoos and conditioners.


3. Nutraceuticals: Upcycled ingredients are being used in a variety of nutraceutical products. For example, ReGrained (the same company mentioned above) also produces a line of protein powders made from upcycled grain. The powders are marketed as a sustainable and nutritious alternative to traditional protein powders. Another example is the use of upcycled fruit and vegetable powders in dietary supplements. Companies like Full Harvest and Imperfect Foods create powders from imperfect produce that would otherwise be discarded, and use them in supplements to provide a range of nutrients.


4. Animal Feed and Pet Food: Upcycled ingredients are being used in a variety of animal feed and pet food products. For example, Shameless Pets is a company that uses upcycled ingredients like salmon skins and sweet potato peels to create dog treats. The treats are marketed as a sustainable and healthy alternative to traditional dog treats. Another example is the use of upcycled grains in livestock feed.

By Region

1. North America: The North American market for upcycled ingredients is expected to grow at a steady pace, driven by the increasing demand for sustainable and environmentally friendly products. In this region, the United States is the largest market for upcycled ingredients. The country has a well-established food industry and a high level of awareness about sustainable practices, which has boosted the demand for upcycled ingredients. Additionally, the increasing adoption of upcycling in various industries, including food and beverage, cosmetics, and personal care, is expected to drive the growth of the market in North America. The upcycling of food waste into high-value ingredients, such as protein powder, is a significant trend in the region, with several startups and established players investing in this space. The favorable regulatory environment and the increasing demand for natural and organic products are also expected to drive the growth of the upcycled ingredient market in North America. Henceforth, the US is expected to drive regional growth during the assessment period.


2. Europe: The upcycled ingredient market in Europe is driven by the growing demand for sustainable and environmentally friendly products. The region has been at the forefront of promoting sustainable practices, which has boosted the demand for upcycled ingredients. The European market is expected to grow significantly, driven by an increasing demand for organic and natural products. The region is also home to several key players in the upcycled ingredient market, such as Upcycle, RISE, and Nutravita, among others. The favorable regulatory environment and the growing awareness about sustainability are expected to drive the growth of the upcycled ingredient market in Europe. Additionally, the increasing adoption of upcycling in various industries, including food and beverage, cosmetics, and personal care, is expected to further boost the market growth in the region. UK & Germany are the major countries in European countries in terms of consumption.


3. Asia-Pacific: The Asia-Pacific region is experiencing significant growth in the upcycled ingredient market, driven by an increasing demand for sustainable and environmentally friendly products. The market is driven by the high population density and the increasing adoption of upcycling in various industries, including food and beverage, cosmetics, and personal care. The region is expected to be the fastest-growing market for upcycled ingredients, owing to the increasing awareness about sustainability and the growing demand for natural and organic products. The market is highly fragmented, with several startups and established players competing for market share. The increasing investment in research and development activities and the favorable regulatory environment are expected to drive the growth of the upcycled ingredient market in the Asia-Pacific region.


4. Rest of the World: The upcycled ingredient market in the Rest of the World region is driven by the increasing demand for sustainable and environmentally friendly products. The market is expected to grow significantly, driven by the increasing adoption of upcycling in various industries, including food and beverage, cosmetics, and personal care. The region has a significant potential for growth, owing to the favorable regulatory environment and the increasing awareness about sustainability. The market is highly fragmented, with several startups and established players competing for market share. Some of the key players in this region include Refarmed Foods, Renmatix, and Agraloop. Additionally, the increasing investment in research and development activities and the growing demand for natural and organic products are expected to further boost the growth of the upcycled ingredient market in the rest of the world region. South America has accounted for the largest market share in 2021 of the rest of the world upcycled ingredients market.