Upcycled Ingredients Market

Upcycled Ingredients Market Outlook (2022-2032)

The global upcycled ingredients market is estimated to be valued at US$ 275.3 million in 2022 after having registered Y-o-Y growth of 5.9%.

Worldwide consumption of upcycled ingredients is projected to increase at a healthy CAGR of 6.4% over the 2022-2032 period, with the U.S. accounting for more than 60% increase in its market share.

Report Attributes	Details
Upcycled Ingredients Market Size (2021A)	US$ 259.9 Million
Estimated Market Value (2022E)	US$ 275.3 Million
Forecasted Market Value (2032F)	US$ 512 Million
Global Market Growth Rate (2022-2032)	~6.4% CAGR
North America Market Share (2021)	~48.7%
North America Market Growth Rate (2022-2032)	~5.7% CAGR
U.S. Market Growth Rate (2022-2032)	~6% CAGR
Top 5 Companies’ Share	~40.4%
Key Companies Profiled	Rise ReGrained Comet Bio Outcast Netzro Kaffe Bueno SunOpta Greentech American river AG

Around 30% of the food produced in the world is discarded. This is not only wasteful but also not sustainable for the planet. Many multinational corporations are working to offset this issue and have plans to leverage this latent opportunity.

Demand Analysis of Upcycled Ingredients (2017-2021) Vs. Market Outlook (2022-2032)

Food wastage is a serious issue around the world and has a strong negative environmental impact just like gas emissions. Rising concerns regarding food waste management have led to opening the door for food waste upcycling.

In upcycling, new value-added products are produced by converting waste material by using upcycled ingredients. Therefore, an upcycled ingredient is a key market of interest, and expanded at a compound annual growth of 5.6% over the 2017-2021 period.

Additionally, to increase the popularity and trust of upcycled ingredients, the Upcycled Food Association presented a program for the certification of upcycled ingredients. According to this program, upcycled ingredients can’t be directly sold to consumers; however, they can be used as an ingredient to make upcycled products.

Upcycled food ingredients are also gaining traction in the cosmetics and personal care industry to make value-added organic cosmetic products to overcome the side effects of harsh chemicals.

Fact.MR, a market research and competitive intelligence provider, suggests that the global upcycled ingredients market will be valued at more than US$ 512 million by 2032-end expanding at a CAGR of 6.4%.

• Short Term (2022 Q2 to 2025): Upcycled ingredients are the new innovative introduction in the food & beverage industry after recycling. Therefore, occupying a space in the food & beverage industry, the upcycled ingredients market will exhibit slow growth in the initial years, creating an absolute $ opportunity of US$ 72.1 million from 2022 to 2025.
• Medium Term (2025-2028): Over the medium term, upcycled ingredient consumption is expected to gain rapid traction due to the introduction of the Upcycled Ingredient Standard as a safe-to-use certification, leading to an incremental opportunity of US$ 91.6 million between 2025 and 2028.
• Long Term (2028-2032): Rising adoption of upcycled ingredients in the cosmetic industry is anticipated to upscale the market in the long run. Fact.MR projects an incremental opportunity of US$ 133.9 million over 2028-2032.

Over the years historical years (2017-2021), the global upcycled ingredients market registered a CAGR of 5.6%, and according to the analysis by Fact.MR, the market is projected to exhibit growth at 6.4% CAGR between 2022 and 2032.

Market share analysis of ingredient type, source, and region is provided in a nutshell in the above image. Under the ingredient type segment, upcycled starch dominated the market with 25.5% market share in 2021.

Why is Demand for Upcycled Ingredients Increasing at a Rapid Pace?

“Urgent Need to Curb High Food Wastage across the World”

Rising social awareness regarding the negative impact of severe food wastage across the globe is drawing attention to upcycled ingredients among the global population.

According to the Food and Agriculture Organization (FAO), around 1.3 billion tonnes of food is wasted per year globally, with a valuation of US$ 2.6 trillion. This food waste demonstrates a harmful impact on the environment as it is accountable for 6% of global greenhouse gas emissions.

Replicating the social involvement of these worrying environmental issues, 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.

What are the Challenges Faced by Upcycled Ingredient Suppliers?

“Chances of Low-grade Food from Upcycled Ingredients”

Lack of oversight about raw material sourcing as well as its way of use can be deceiving to customers if the ingredients are repurposed to make food products without adhering to government guidelines.

Additionally, food products made from upcycled ingredients may be of low quality and lack nutrients as compared to fresh food. They can also be used as fillers rather than by-products, which can affect consumers’ health.

Upcycled ingredients used for food may be more acceptable to consumers if it is viewed as a resource rather than waste.

Country-wise Insights

Which European Countries Account for High Demand for Upcycled Ingredients?

The Europe upcycled ingredients market is anticipated to reach a valuation of US$ 116 million by 2032.

Germany, France, and the U.K. are projected to be key supporters of the European market. Germany is anticipated to account for 18.6% share of this regional market in 2022, while, France and the U.K. will collectively contribute 27.3% of the European upcycled ingredients market share.

Market growth is high on the back of rising concerns about food wastage and growing demand for more plant-based ingredients owing to the expanding vegan population in the European region, especially in these three countries.

Why is the Upcycled Ingredients Trend Big in the United States?

The U.S. is a prominent market in terms of the consumption of upcycled products. It is estimated to account for 68.7% market share in the North American region as well as 32.1% of the global market share by 2032.

Rising food production, as well as food wastage in North America, makes it a favorable region for upcycled ingredient manufacturers to come up with innovative solutions by using food wastage. Manufacturers’ majority along with certified upcycled ingredients in the region is likely to expand their usage over the coming years.

Category-wise Insights

Why is Demand for Plant-based Upcycled Ingredients Making Headlines?

Plant-based upcycled ingredients account for 75.6% of the market share, by source, in 2022, and are also projected to grow the fastest over the forecast period at a CAGR of 6.2%.

The high popularity of plant-based sources for making upcycled ingredients is due to the high wastage of fruits and vegetables as compared to animal sources. Also, the rising vegan population is anticipated to drive the production of upcycled ingredients from plant-based sources.

Animal-based is the second major shareholding segment under source, which accounts for 19.5% of the market share.

Will the F&B Sector Play a Key Role in the Upcycled Ingredients Market?

Escalating use of upcycled ingredients in the food and beverage industry led to the rapid demand growth of upcycled ingredients over the historical period, and the trend is expected to be seen over the coming years as well.

Due to the benefits of skincare, the use of upcycled ingredients in the cosmetics industry is rising rapidly. However, the use of upcycled ingredients in animal feed and pet food will direct market growth at a CAGR of 5.4% during the assessment period.

Competitive Landscape

Key manufacturers of upcycled ingredients are trying to fetch raw materials to bring innovative certified upcycled ingredients into the market. Many manufacturers collect raw materials from previous manufacturing processes to bring in upcycled ingredients.

As per regulations, upcycled ingredients can be supplied to the B2B sales channel, and therefore, manufacturers need to build their relations with other upcycled product manufacturers.

Also, some manufacturers are involved in inorganic growth tactics such as partnerships to acquire a larger consumer base and higher profit margins.

For instance :

• In March 2022, SunOpta, a key manufacturer of upcycled ingredients, received the Upcycled Ingredient Certified standard from the Upcycled Food Association for the product OatGold.
• In January 2022, ReGrained entered into a partnership with Purotos to offer an upcycled solution for the commercial baking industry.

Categorization of Upcycled Ingredients Industry Research

• Upcycled Ingredients Market by Ingredient Type :

  • Upcycled Starch
  • Upcycled Proteins / Powder
  • Upcycled Flour
  • Upcycled Dietary Fiber
  • Upcycled Ethanol
  • Upcycled Oils
  • Upcycled Vitamins
  • Upcycled Electrolytes
  • Upcycled Antioxidants
  • Upcycled Minerals

• Upcycled Ingredients Market by Source :

  • Plant-based
    • Seeds
    • Peels
    • Flowers
    • Fruits
    • Grains
  • Animal-based
    • Egg Shells
    • Animal Bones
  • Others

• Upcycled Ingredients Market by End Use :

  • Food and Beverages
  • Cosmetics and personal care
  • Nutraceuticals
  • Animal Feed and Pet Food

• Upcycled Ingredients Market by Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & ASEAN
  • Oceania
  • MEA