Upcycled Ingredients Market to Rise at CAGR of 6.8% to Reach US$ 647.9 Million by 2035: Fact.MR Study

Upcycled ingredients market grows as food makers embrace sustainability, turning waste into high-value products for health-conscious consumers.

ROCKVILLE, MD, UNITED STATES, July 14, 2025 /EINPresswire.com/ -- The global upcycled ingredients market is projected to grow from USD 314.1 million in 2024 to USD 647.9 million by 2035, registering a CAGR of 6.8% during the forecast period.

This growth is primarily driven by the rising focus on sustainable sourcing and circular economy initiatives. Manufacturers are increasingly integrating upcycled ingredients into functional and clean-label products to reduce waste, align with regulatory standards, and enhance their ESG performance in line with changing consumer expectations.

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What’s Fueling Market Growth?

Sustainability & Circular Economy

With nearly one-third of all food produced going to waste, brands and governments are mobilizing to reduce environmental waste. Upcycling food by-products addresses this issue while converting waste into usable, revenue-generating ingredients .

Consumer Demand for Clean-Label Products

Health-conscious and eco-aware consumers increasingly seek products with recognizable, wholesome ingredients. Upcycled ingredients—like fiber from fruit pulp or antioxidant-rich grain husks—fit this trend perfectly .

Supportive Regulation & Retail Advocacy

Retailers are showcasing upcycled items in premium aisle space, while government incentives and environmental policies encourage circular sourcing. This regulatory tailwind strengthens market adoption.

Cross-Industry Innovation

Upcycled ingredients are now finding uses in diverse product lines—spanning from nutrition bars and dairy to cosmetics, personal care, pet food, and nutraceuticals. This versatility magnifies market potential.

Which regions are driving growth in the upcycled ingredients market through sustainability-focused food innovations?

In North America, rising awareness around food waste and sustainability is fueling demand for upcycled ingredients. Manufacturers are incorporating byproducts into mainstream food and beverage products, supported by both government and private sector initiatives that promote circular economy practices and encourage industry innovation.

East Asia is witnessing strong momentum as consumers shift toward sustainable and health-conscious diets. Ingredient recovery is being driven by urbanization challenges and food security concerns. Local companies are developing new formulations, while government-backed campaigns promoting waste valorization are drawing both local and foreign investment.

Western Europe stands out for its strict environmental regulations and consumer demand for eco-friendly products. Functional foods now commonly include recovered fibers, oils, and proteins. Certifications and supportive policy frameworks have helped improve transparency, boost consumer confidence, and accelerate market expansion across the region.

Competitive Analysis

The upcycled ingredients market is growing rapidly, driven by companies transforming food byproducts into valuable products. Renewal Mill uses okara (soy milk byproduct) to create high-fiber, protein-rich flour, while Upcycled Foods Inc. (formerly ReGrained) developed SuperGrain+ from spent brewers grains. Planetarians and ÄIO produce plant-based meat and sustainable oils by upcycling defatted seeds and industrial waste, respectively.

Consumer brands like Bake Me Healthy and Barnana use imperfect produce to create allergen-free baking goods and fruit snacks. Others like Casca Foods, Green Bowl, and I Am Grounded turn fruit waste and coffee cherries into supplements and energy bars. Matriark Foods partners with farmers to supply nutritious meals to public institutions. Japanese brand Upcycle by Oisix brings global upcycling to local tray meals.

Innovators like Pluck and Rootly reduce waste by crafting seasonings from food scraps and plant-based dairy from upcycled seeds. Major players include Renewal Mill, Upcycled Foods Inc., Planetarians, AIO.BIO, and others.

Recent Developments:

September 2024: Upcycled Foods Inc. and Atoria’s Family Bakery launched the first upcycled naan using ReGrained SuperGrain+, entering both retail and foodservice sectors.
April 2025: Compound Foods introduced a platform for beanless coffee and cocoa made from fermentation and upcycled inputs, reducing environmental impact and supply chain risks.

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Segmentation of Upcycled Ingredients Market Research

By Source :
Fruit & Vegetable Waste
Cereal & Grain Byproducts
Dairy Waste
Meat & Seafood Waste
Brewery Spent Grains
Others (e.g., coffee grounds)

By Product Type :
Flour
Oils & Fats
Fibers
Proteins
Sweeteners
Antioxidants
Enzymes & Others

By Form :
Solid
Liquid
Semi-solid
Powder
Gel
Paste
Others

By Application :
Food & Beverage
Cosmetics & Personal Care
Animal Feed
Nutraceuticals
Biofuel & Biochemicals
Pharmaceuticals
Others

By End Use Industry :
Food & Beverage
Cosmetics
Animal Feed
Nutraceuticals
Biofuel
Pharmaceuticals
Others

By Region :
North America
Latin America
Western Europe
Eastern Europe
East Asia
South Asia & Pacific
Middle East & Africa

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