Upcycled Food Ingredients Market (2026-2036)

The growth of this market is mainly driven by the large amount of food lost and wasted along the supply chain, growing pressure on food and beverage companies to reduce food waste and greenhouse gas emissions, including binding food waste reduction targets in the European Union, rising demand for fiber, protein, and other nutritious ingredients, the development of new processing technologies that turn side streams into stable, food-grade ingredients, and consumer interest in sustainable products supported by certification programs such as Upcycled Certified. However, factors such as the cost and complexity of collecting and stabilizing perishable side streams, inconsistent quality and supply, regulatory requirements for novel foods in some regions, limited consumer awareness, and competition from conventional ingredients are expected to restrain the growth of this market to some extent.

Upcycled food ingredients are ingredients made from food materials that would otherwise be wasted or used for low-value purposes, such as animal feed, compost, or energy. They are produced from side streams and by-products of food processing, such as fruit and vegetable pomace and peels, brewers' spent grain, oilseed press cakes, okara from soy milk production, bran and germ from grain milling, coffee cherry pulp and cacao fruit, and acid whey from dairy processing, as well as from surplus and imperfect produce. These materials are processed into food-grade fibers, proteins, flours, powders, sweeteners, extracts, and oils that can be used in a wide range of food and beverage products.

This market covers the global sales of upcycled food ingredients, measured in value. It includes dietary fibers, proteins, flours and powders, sweeteners and extracts, and oils and other ingredients produced from fruit and vegetable by-products, brewer's spent grain, oilseed and legume by-products, cereal and grain milling by-products, coffee and cocoa by-products, and dairy by-products, used in bakery and snacks, beverages, nutrition and dietary supplements, dairy and dairy alternatives, meat alternatives and processed meat, confectionery, and other applications. It is segmented by ingredient type, source, application, and geography. Long-established by-product commodities, such as standard whey protein concentrates, molasses, and wheat bran sold for feed, as well as finished upcycled consumer products, are not included.

Food loss and waste is a major global problem that affects every stage of the food system, and a large share of the food produced in the world is lost or wasted between the farm and the consumer, which wastes the land, water, energy, and labor used to produce it and creates greenhouse gas emissions when it decomposes. Food processing alone generates large volumes of side streams, many of which are nutritious and safe but have been used as animal feed or discarded because they are perishable, bulky, or not valued by the food industry. Upcycling turns these materials into higher-value food ingredients, which reduces waste and creates new revenue for processors.

Upcycled ingredients are often rich in nutrients, such as fiber, protein, polyphenols, and minerals, which makes them attractive for health-focused products. Brewers' spent grain, for example, contains high levels of protein and fiber; fruit pomace is rich in fiber and antioxidants; coffee cherry pulp contains polyphenols and natural sugars; and oilseed press cakes from sunflower, rapeseed, and other crops contain high-quality protein. Processing technologies, such as drying, milling, enzymatic hydrolysis, fractionation, extraction, and fermentation, are used to stabilize these materials and turn them into functional ingredients.

The value of upcycled ingredients is increasingly recognized across the food industry. For processors, upcycling turns a disposal cost or low-value feed sale into a new ingredient business with higher margins. For food manufacturers, upcycled ingredients provide fiber, protein, and functional benefits along with a credible sustainability claim, and they help companies report progress on food waste and scope 3 emissions targets. For consumers, products made with upcycled ingredients offer a simple way to reduce food waste through everyday purchases, and the Upcycled Certified mark helps them identify such products on the shelf.

The market includes a wide range of companies, from global food and ingredient groups to specialist start-ups. Large food, beverage, and ingredient companies, such as AB InBev through EverGrain, Barry Callebaut through Cabosse Naturals, Kerry, CP Kelco, Döhler, Arla Foods Ingredients, and Cosun Beet Company, produce upcycled ingredients from their own side streams or those of partners. Specialist companies, such as Fiberstar, Herbafood Ingredients, Comet Bio, ReGrained, The Coffee Cherry Co., Outcast Foods, and Planetarians, develop ingredients from specific side streams and sell them to food manufacturers.

Certification and standards help build trust in upcycled ingredients among food manufacturers, retailers, and consumers. The Upcycled Food Association defined upcycled foods and created the Upcycled Certified program, now administered by Where Food Comes From, which verifies that products and ingredients use food that would otherwise have been wasted. Certification allows brands to make credible claims about food waste reduction, and some retailers and food service companies are using upcycled ingredients as part of their sustainability strategies.

Over the forecast period, the upcycled food ingredients market is expected to grow strongly, supported by food waste regulations, corporate sustainability goals, demand for fiber and protein, investment in processing technology, and growing consumer awareness. Europe is expected to see particularly strong growth because of binding food waste reduction targets and support for the circular bioeconomy, while North America remains the largest market.

We want suppliers who can deliver consistent quality at scale. Upcycled fibers have reached that point, and we are now testing upcycled proteins as well.

This shows how consistency and scale are moving upcycled ingredients from small brands to large manufacturers, and how buyers expect proteins to follow fibers into mainstream use.

Operations Director - brewery group, U.S.

Spent grain used to be a low-value product that we sold to local farmers for animal feed. Turning it into food ingredients gives us a better return and helps us meet our sustainability goals.

This explains why brewer's spent grain is the fastest-growing source in this market and why brewing companies are investing in upcycling.

The EU food waste targets mean we must use our side streams better. Upcycling them into ingredients is the best option.

This explains why Europe is the fastest-growing region.

For European manufacturers, regulation is turning upcycling from a voluntary sustainability project into a business requirement, which supports faster growth in the region.

Product Manager - sports nutrition brand, U.K.

Upcycled proteins give us a lower-carbon protein with a good story for our customers.

This explains why proteins and nutrition are growing fastest.

Fruit and vegetable by-products are expected to account for the largest share of the market in 2026, due to the large volumes of pomace, peels, and trimmings from juice and processing, while brewer's spent grain is projected to register the highest CAGR.

Binding EU targets require Member States to reduce food waste in processing and manufacturing by 10% and in retail and consumption by 30% per capita by 2030, which encourages processors to find higher-value uses for side streams. National programs in the U.S., the U.K., Japan, and South Korea also support food waste reduction.

The Upcycled Certified program verifies that ingredients and products use food that would otherwise have been wasted, which allows brands to make credible claims. The program included more than 100 companies and about 620 certified items in 2025.

Key technologies include rapid drying, milling, enzymatic hydrolysis, wet fractionation, membrane filtration, extraction, and fermentation, which turn perishable side streams into stable, food-grade fibers, proteins, flours, and extracts.