Upcycled Food Products Market size was USD 61.1 billion in 2024 and is estimated to reach USD 128.7 billion by the end of 2037, expanding at a CAGR of 5.9% during the forecast period, i.e., 2025-2037. In 2025, the industry size of upcycled food products is assessed at USD 64.7 billion.
The upcycled food products market is expanding due to consumers' growing understanding and concern about environmental sustainability. This has prompted them to seek eco-friendly alternatives, preferring items that reduce food waste and carbon footprint. According to the UN World Food Program, one-fifth of the food produced for human consumption is wasted or lost worldwide. That's one billion meals every day. Up to 10% of greenhouse gas emissions worldwide are caused by food loss and waste, nearly five times as much as the aviation industry.
A promising solution to the growing challenge of food waste is food upcycling. Instead of allowing excess food to end up in landfills, this sustainable approach transforms it into new, nutritious, high-quality products or ingredients. This strategy reduces the environmental impact of waste disposal and fosters a circular economy, paving the way for an expanding market for upcycled food products in the years ahead.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5.9% |
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Base Year Market Size (2024) |
USD 61.1 billion |
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Forecast Year Market Size (2037) |
USD 128.7 billion |
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Regional Scope |
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Distribution Channel (Online, Offline)
Online segment is projected to dominate upcycled food products market share of around 90.7% by the end of 2037. The growth of this segment can be attributed to the convenience that e-commerce platforms offer, allowing consumers to easily browse and buy upcycled products from the comfort of their homes. Additionally, recycled food brands can reach a larger audience through internet platforms, extending their market reach beyond conventional brick-and-mortar storefronts. Environmentally conscious customers find it enticing as comprehensive information regarding these products' sustainability and environmental advantages may be found online.
Furthermore, the user experience is being improved by innovations like voice-activated shopping, mobile apps, and artificial intelligence, which make it more fluid and intuitive. In addition to making purchasing easier, these technologies offer customers more individualized and effective services. Online grocery shopping is becoming popular due to the market's competitiveness, which has improved pricing, expanded product availability, and enhanced delivery possibilities.
Source (Food Waste, Agriculture by Products, Brewery and Distillery Waste)
The food waste segment in upcycled food products market is estimated to garner a significant share during the forecast period. The segment is growing owing to increasing customers' demand for eco-friendly and sustainable solutions to reduce food waste due to growing environmental consciousness. Furthermore, by using excess ingredients that would otherwise be wasted, upcycled foods provide a way to address the global food crisis. The UN World Food Program reported nearly 282 million people, or 21.5% of the total population in 59 countries and territories, experienced severe food insecurity in 2023 and needed immediate aid for their livelihood and nourishment. Food processing, preservation, and packaging innovations are essential.
Biotechnology is emerging as a resource to improve the nutritional value of repurposed materials. Digital platforms can streamline sourcing and guarantee consistency by enabling direct links between upcycling brands and garbage generators, which may increase the growth food waste segment. Moreover, skincare products can incorporate ingredients that might not be aesthetically acceptable for food consumption, allowing their nutritious value to be applied topically.
Our in-depth analysis of the global upcycled food products market includes the following segments:
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Type |
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Source |
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Distribution Channel |
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North America Market Statistics
North America in upcycled food products market is estimated to hold over 37.4% revenue share by the end of 2037. The upcycled food products market is growing in the region owing to the increased e-commerce and online grocery shopping, which has made it easier for consumers to access wide upcycled food products. In the U.S., online grocery sales increased by 55% from USD 62 billion in 2019 to USD 96 billion in 2020, according to the Food and Drug Administration (FDA). Also, people are actively looking for eco-friendly substitutes as they grow more aware of the negative effects food waste has on the environment. Utilizing leftover or surplus resources, upcycled food items provide a compelling alternative by producing wholesome and eco-friendly options.
Also, the U.S. is a perfect destination for producers of upcycled ingredients to develop creative solutions by utilizing food waste because of the region's rising food production and food waste. The majority of manufacturers in the region are anticipated to increase their use of certified upcycled ingredients in the upcoming years.
The Government of Canada supports efforts to minimize food waste and improve sustainability in the nation, driving the demand for upcycled food products. For instance, in February 2022, Outcast Foods Inc., which upcycles excess and unsaleable fruits and vegetables from growers, processors, and retailers into dried, plant-based powders and solid food ingredients, was awarded up to USD 1,545,000 in funding by the Minister of Agriculture and Agri-Food to expand their food waste reduction operations.
Europe Market Analysis
Europe upcycled food products market will hold a notable share during the projected period. The leading food corporations proactively promote upcycled food products as a strategic initiative to mitigate food waste, thereby catalyzing upcycled food products market growth in this region. For instance, in June 2024, Foodvalley launched UPCycled4Food, a project to make upcycled food items and ingredients the 'new normal'. This initiative aims to foster new collaborations in the supply chain that result in new innovative products and ingredients to ensure that food manufacturers, food service companies, and retailers produce source, and supply upcycled food products and ingredients as the new normal.
Furthermore, increasing food wastage concerns and surged demand for more plant-based ingredients owing to the expanding vegan population in Germany, France, and the UK are propelling upcycled food products market growth in the region. The European Vegetarian Union stated that with a 97% increase in plant-based sales value and an 80% increase in sales volume, Germany has the highest revenue, with a total growth of USD 858.41 million.
Key market strategies including mergers, product launches, acquisitions, partnerships, and collaborations are the main focus of the top companies in the upcycled food products market. To preserve their reputation in the fiercely competitive business, they have also been concentrating on expanding their market reach. Since recycled ingredients can be delivered to the B2B sales channel following rules, manufacturers must cultivate relationships with other makers of upcycled products.
Author Credits: Parul Atri
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