A recent presentation by Amarjit Sahota, Founder of Ecovia Intelligence at the Sustainable Foods Summit held in Singapore from 25-26 February, provided a brief overview of the Upcycled Foods Market which was estimated at US$420 million. Leading markets in this small segment are still the developed markets of North America and Europe.
Although this market is still small, it has almost doubled in value within a 2-year period from US$200 million in 2022 to US$420 million in 2024, signifying that it is a rapidly growing segment although starting from a small base, reflecting rising global consumer concerns over food loss and wastes, which could attract greater investments in this segment.
Despite the positive trend, there is still limited awareness of upcycled foods, with many consumers having a negative perception of this category. Many have the misconstrued conception that upcycled foods should be limited to pet food or animal consumption, and not suitable for humans.
Upcycled Foods are made from ingredients that would have otherwise been discarded as food waste, however they are not leftover human foods, instead they could be part of a food product which is not traditionally consumed – for example snack bars made from spent grain from brewing beer, or jams/spreads made from ‘ugly’ fruits.
As such, in order to grow this market, there must be greater investments to educate consumers and build awareness of this category. A consumer survey to assess awareness on upcycled foods found that more than 60% of respondents are not aware of this product category while only 2.6% gave a definite yes (see Chart 1.0). This means the industry is suffering from lack of awareness, not to mention, many have a negative perception of the industry.
At present, beverages dominate the upcycled food industry followed by snacks and condiments. Manufacturers see greater application of ‘otherwise discarded’ ingredients like whey, cacao pulp, and okara into beverages with high nutritional values. (see Chart 2.0)
Ecovia Intelligence has identified major challenges or obstacles to growth of this segment, and they include supply chain issue with regards to the raw materials used in the upcycled food products; the premium price positioning of upcycled food products which could have turned off consumers; and the lack of marketing efforts to build up awareness of upcycled foods.
With greater product certification, acceptance and cooperation between industry sectors, the upcycled food segment could thrive with high market growth in the years to come.
