Upcycled Food Products Market Trends

Growth Drivers

• Growing popularity of vegan & plant-based diets: As more people switch to plant-based diets, there is an increasing need for plant-based ingredients, such as upcycled products made from leftover food and other sustainable sources. According to the World Animal Foundation, nearly 1-2% of people worldwide are vegans. In response to the growing demand for plant-based and vegan diets, businesses are creating new recycled food products that accommodate these dietary preferences and meet consumer needs for sustainability and eco-friendliness. Upcycled food items are ideal for customers seeking environmentally friendly and sustainable food options as they grow more and become aware of environmental sustainability and human health.
• Business investment and development programs: Leading food businesses are spearheading improvements in waste efficiency, repurposing food surplus, and using repurposed ingredients. For instance, since its establishment in 2016, Toast Ale has upcycled 2.9 million pieces of leftover bread, according to a 2022 study, in collaboration with a few bakers and sandwich manufacturers in the UK. Additionally, it has collaborated with 86 breweries since its founding, assisting them in using additional bread in their brewing.
  
  Moreover, these firms are revolutionizing the food and agriculture sectors by promoting a more circular and sustainable resource management method. Additionally, the surging raw material costs encourage innovation in the upcycling industry as companies look for new and efficient ways to upcycle food waste and turn it into valuable products.
• Favorable government initiatives: Small and medium-sized food waste upcycling businesses have grown due to increased government incentives and investments in developing food collecting waste, separation, and upcycling technologies in existing and important new countries. For instance, USDA’s National Institute of Food and Agriculture (NIFA) has invested USD 123.5 million in 527 food loss and waste projects since 2017. The 2022 funding will add USD 25 million to several NIFA's main projects. To decrease food loss and waste, distribute excess nutritious food to persons, and create connections between food producers, suppliers, and food recovery organizations, the funds will be used to support the Community Food Projects (CFP) Competitive Grants Program.

Challenges

• Limited consumer awareness: Upcycled food products market expansion may face limitations due to low consumer awareness and skepticism regarding recycled products, as well as challenges related to establishing reliable supply chains and navigating regulatory hurdles. Despite these obstacles, the potential for growth within the industry remains significant, driven by its positive environmental impact and the increasing consumer demand for sustainable food alternatives.
• Gustatory Characteristics: Dietary preferences are heavily influenced by taste. Research has been done to assess the organoleptic qualities of repurposed foods, such as biscuits made from defatted flour or fungus burgers made from leftover bread. These researchers discovered that the sensory attributes of upcycled food depend on the formulation's amount of upcycled ingredients and product composition. Compared to traditional food products, upcycled foods may taste and feel different, which detracts from their attractiveness and may hinder the growth of the upcycled food products market.