The Upcycled Food Movement
In the United States, almost 38% of all food goes unsold or uneaten every year, leaving behind a climate footprint equivalent to the entire U.S. aviation industry (as estimated by the nonprofit ReFED.) An unfortunate truth of the food and beverage industry, food waste occurs at every level – from manufacturers to retailers to consumers.
Over the last few years, a new upcycling food movement has emerged in response to this issue. EOS Intelligence forecasted that in 2022, the global market size for upcycled food products was $53 billion and is projected to reach $83 billion by 2032–with an expected CAGR of 4.6%. A report conducted by Allied Market Research on the global market disclosed that the leading segment utilizing upcycled food products is food and beverage, and the North American region is currently the largest market, making up nearly two-fifths of the market. Consumer interest in ESG-focused brands has driven the growth in the upcycled food market due to the social and environmental benefits associated with these types of products. The introduction of organizational structure in this once-niche space has helped legitimize the movement and create a foundation for future growth.
Impact on CPG
Deficiencies in current food production practices have diverted valuable nutrients away from the U.S. food system and created widespread food waste. Within those gaps lie opportunities for CPG innovation, rebranding waste streams into value streams as existing systems are accounted for and utilized to their full potential. Farm surplus, ugly produce and manufacturing by-products are some of the primary sources of ingredients for the upcycle food product market, leading brands include:
● EverGrain by Anheuser-Busch utilizes spent grain, a by-product of their beer brewing process.
● Uglies (kettle chips) and Diana’s (chocolate-covered bananas) source their star ingredients from unattractive produce.
● Blue Stripes utilizes the whole cacao – shell, fruit, and beans – to create water, granola, superfruit powder, and chocolate products.
Beyond the scope of food and beverage, the application of upcycled food can also extend to personal care products, household products, and pet food. Opportunities for partnerships between brands, food producers, and manufacturers provide an entry into the space and mutual economic benefits. Similarly, working with nonprofits like the Upcycled Food Association (UFA), which focuses on preventing food waste by growing the upcycled food economy, may provide much-needed support to smaller start-ups through its initiatives.
The Upcycled Food Association
The UFA was founded in 2019 to build a food system that elevates food to its highest use. The UFA has worked to cultivate this mission by attracting more investment to the upcycled industry, improving the upcycled business network/supply chain, and increasing consumer demand for upcycled products through the coordination of hundreds of companies globally. Since its inception, the UFA has made fundamental contributions to the industry. In 2020, it gathered a team of experts from academic, governmental and nonprofit institutions to define the term upcycled foods for application in policy and research. Eventually, it developed the first third-party certification program and its corresponding label to empower consumers to support brands that reduce food waste and combat climate change. The UFA’s efforts push forward its vision for a more sustainable and equitable food system for all.
Looking to the Future
Upcycled food may seem like the latest trend to ride the sustainability wave, but the growth potential is tangible. Consumers are interested in products that better our planet/society, and businesses are looking to optimize their processes; the upcycled food product industry checks off these boxes. Participating in diminishing food waste would result in environmental, social, and economic benefits while creating a win-win scenario for brands, investors, producers, and consumers.
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