08.25.22
The global upcycled ingredients market is estimated to be valued at $275.3 million in 2022 after having registered YoY growth of 5.9%, according to a recent report from FactMR.
Worldwide consumption of upcycled ingredients is projected to increase at a healthy CAGR of 6.4% over the 2022-2032 period, with the US accounting for more than 60% increase in its market share. Around 30% of the food produced in the world is discarded. Many multinational corporations are working to offset this issue and have plans to leverage this latent opportunity.
Upcycled Ingredients: Resource Over Waste
A lack of oversight about raw material sourcing as well as its way of use can be deceiving to customers if the ingredients are repurposed to make food products without adhering to government guidelines.
Additionally, food products made from upcycled ingredients may be of low quality and lack nutrients as compared to fresh food. They can also be used as fillers rather than by-products, which can affect consumers’ health.
Upcycled ingredients used for food may be more acceptable to consumers if it is viewed as a resource rather than waste.
Competitive Landscape
Key manufacturers of upcycled ingredients are attempting to fetch raw materials to bring innovative certified upcycled ingredients into the market. Many manufacturers collect raw materials from previous manufacturing processes to bring in upcycled ingredients.
Per regulations, upcycled ingredients can be supplied to the B2B sales channel. Thus, manufacturers must build their relations with other upcycled product manufacturers. Some are involved in inorganic growth tactics such as partnerships to acquire a larger consumer base and higher profit margins.
In March 2022, SunOpta, a key manufacturer of upcycled ingredients, received the Upcycled Ingredient Certified standard from the Upcycled Food Association for the product OatGold.
In January 2022, ReGrained entered into a partnership with Purotos to offer an upcycled solution for the commercial baking industry.
Read the full report from FactMR, go here.